The UAE is the ocean of talent. It’s the best place for expats to move. Because of the wages and incentives that the UAE offers to them. The UAE government is strict when it comes to labor laws especially minimum wage in UAE. So, that employee has a benefit to enjoy all the benefits as prescribed by UAE employment law
In addition to this, there is no stipulated minimum wage by UAE labor law. However, the UAE government ensures the wellness of employees. Thus, the minimum wage in UAE should be enough to cover the basic needs of employees. The UAE’s minimum wage varies from organization to organization. It depends on the job grade, level of experience, and skills the individual possess
What is the Minimum Wage in UAE?
According to UAE labor law, there is no specific UAE minimum wage mentioned. However, it must cover the basic needs of employees. The employee and employers both need to negotiate on the pay rate. The wages are decided on the basis of the hour. By law, there is no minimum wage in UAE per hour.
Understanding the Minimum Wage in UAE
Ready to start your employment journey in the UAE? You must know the minimum wage that you are going to get. It depends on the job role that you are going to receive
On the other hand, there is no minimum wage in UAE as per the UAE labor law. The worker is compensated based on the role of the job. For instance, the salaries are mentioned in the employment contract. The profession decides what salary you deserve to receive. The domestic worker may earn between AED 1100 to 1800.
We are listing some of the professions and their respective salaries:
- The University graduates can earn AED 12,000 per month
- The skilled technicians have the potential to earn AED 7,000 per month
- However, the skilled laborers have a salary of AED 5,000. It is for those with a secondary school
certificate
Understanding UAE Labor Laws
The UAE takes the employee well well-being too seriously. Hence, they want to make sure that every employee is paid fairly and equally.
Workers who believe that are on low wages and are underpaid can contact the MOHRE. The Ministry of Human Resources and Emiratisation (MOHRE) ensures that employees are compensated based on their job role. The employers must comply with the employment laws of the UAE. Given that, employers must follow the UAE labor laws and there is no violation that they are convicted of.
Deciphering UAE Employment Trends
To decipher the employment trend in the UAE, it is necessary to analyze factors such as technological growth, industry advancement, government policies, and demographic shifts
The UAE government needs to focus on the knowledge-related sectors which are Finance and Technology. The influx of expatriates and the dependency on oil should be excluded. Encourage more Emiratis to take part actively. To rely more on automation than traditional ones. These all can be utilized to shift employment trends in the UAE
Economic Diversification and Labor Market Trends
Around the UAE, it is necessary to divert the shift to the new market trends. The reliance on a dominant industry should be avoided so that new sectors will be introduced.
The change will create diverse opportunities for workers in the UAE. These roles need the skill set, so acquire the latest demanding skills. It will minimize the dependency on the oil and gas sectors. The new sectors such as Finance, tourism, and technology need to be promoted
By doing so The UAE government can address economic diversification well that aligns with the current labor market trend
Safeguarding Worker Rights in UAE
The UAE labor laws are specifically designed to keep in view employee rights. The employers need to comply with the employment law. Failure to comply will get him severe consequences.
Around the UAE, the employee is the king! That means if they are not satisfied with their current salary packages or wages or they feel they are not fairly compensated they have a right to contact MOHRE. They can complain to their employers that they are not getting fair pay. As a result, their employers are answerable and can face serious troubles
Proposed Changes in Minimum Wage Laws
According to the changes in the minimum wages laws, it states that employers need to increase the minimum wage of workers. It can be done to pay their employees fairly so that they can increase their standard of living. The wage can be increased by keeping the view of inflation, and regional cost of living, and implementing incremental increases over time.
Addressing Income Inequality: Minimum Wage in UAE
The UAE labor laws are in favor of workers. Every employee is entitled to receive the wage that they deserve. Besides of this, if any employee is not satisfied with the current wage they can contact MOHRE.
However, the UAE government can also take the initiative to address income inequality by launching policies to:
- Enhance educational opportunities
- Promote fair labor practices
- Implement progressive taxation and
- Fostering entrepreneurship
How to Negotiate Wages as an Employer
It is a delicate process to negotiate with employees. But it is necessary to do so, to ensure your employee satisfaction and fair dealing with them. As an employer, you can follow these tips to negotiate with your employees. The tips are listed below:
- Conduct market research to know the salaries for the respective positions. It depends on the industry and geographic location
- The negotiations are carried out by considering the employee’s qualifications, experiences, and skill sets
- You should be transparent and clear in communicating the salary range. Give them a rationale reason of the wage offered
- Understand that negotiation is a two-way street. You need to be flexible so that both parties can mutually decide the salary
- Deal with the negotiation process professionally and in a respectable manner. It is necessary to foster a positive environment between you two
Minimum Wage Regulations for Various Sectors
Around the UAE, a range of factors are considered when deciding the minimum wage in UAE. These factors include location, profession, and experience.
The minimum wage varies across the seven emirates of the UAE. There are no wages mentioned in the UAE labor law. However, by profession employees are compensated in the form of salaries. The higher salaries are offered to employees in the major cities like Abu Dhabi and Dubai. The United Arab Emirates provides high salaries compared to other countries. We share the practical example below:
Here, we share the minimum salaries by Location:
The individuals in Dubai have the potential to earn AED 35,000 per month. The inspiring expats in Abu Dhabi can earn AED 30,000 per month. On the other hand, Sharjah pays the lowest but not too low, that is AED 25,000 per month
After exploring the minimum salaries by location, now we share the minimum salaries by Profession:
The talented Engineers can earn up to AED 50,000 or more depending on the level of experience and skill set per month. The most honoured professionals throughout the world, who are Doctors have the potential to earn AED 40,000 per month. Or sometimes more, it depends on their experience, the institution from which they took the degree, and other factors. Another prestigious profession is teaching, teachers are entitled to receive minimum wages of AED 20,000 per month
Conclusion
In conclusion, the UAE is a dream place for aspiring expats. This is due to a number of reasons. Out of them, the top one is the employment laws of the UAE. The labor law defends the rights of employees at every step. From giving them the chance to the world’s best opportunities to receive the compensation that their heart desire. All in all, they get the best exposure of their life. The employees are compensated well when it comes to minimum wage in UAE and salaries. The higher your worth the high you can earn. The sky is the limit. To learn more about other employment topics, connect with us today!
FAQs
What is the minimum wage rule in UAE?
The employment law of labor states, that there is no minimum wage in UAE for workers in the UAE. It depends on the person who’s doing a particular job role. However, the employee and employer can negotiate about the salaries.
What is the basic salary rule in UAE?
The basic salary in UAE is the amount that employee receives based on their qualification, experience, and profession. It is mentioned in the employment contract at the time of hiring. It is exclusive of all benefits, allowances, and incentives.
What is normal wage in UAE?
The normal wage of workers in the UAE depends on the job role they offer. It can be decided mutually with the employer. It is offered by keeping in view employee experience.
On the other hand, the minimum salaries are mentioned by UAE law. For instance, the skilled technicians can receive AED 7,000 per month from their jobs. The skilled laborers have a salary of AED 5,000 with a secondary school
certificate.
What is the minimum wage in Dubai?
By UAE labor law, there is no minimum wage mentioned for workers in Dubai. However, the employee and employer can mutually decide it and negotiate on it.
