Awareness

Compliance Checklist for Companies in UAE

Compliance Checklist for Companies in UAE: VAT, ESR, and UBO Requirements Explained
Compliance Checklist for Companies in UAE: VAT, ESR, and UBO Requirements Explained 800 500 HRSG

Businesses in the UAE undergo strict compliance checks on a regular basis. In fact, the high benchmarks for compliance are one of the many reasons why the UAE has managed to experience the growth it has. While the government here is all for supporting businesses and helping them grow, they are equally focused on maintaining international standards. Anything that does not meet the benchmarks is off the table.

That’s why it is best to have a compliance checklist for companies​ by your side while you are establishing a company here in the UAE and running it. The compliance checklist for companies​ is an easy way to ensure that you are operating well within the guidelines and, thus safe from fines and penalties. 

Today, we will be explaining the requirements for three important compliance areas: VAT, ESR, and UBO. Let’s take a look at each of them in detail. 

Value Added Tax (VAT)

The UAE introduced Value Added Tax to its system in January 2018 at a standard rate of 5%. It was introduced as a way to provide the country with a new source of income and reduce its dependence on incomes from oils and other hydrocarbons. The Federal Tax Authority (FTA) is the one responsible for looking after the VAT. 

Here’s what you need to know about VAT compliance in the UAE:

The mandatory registration threshold for VAT is AED 375,000, meaning if your company’s taxable supplies and imports exceed AED 375,000, you have to register for VAT. 

There’s also a voluntary registration threshold of AED 187,500. So, if your company’s taxable supplies and imports exceed AED 187,500 but are under the mandatory registration threshold, you may choose to register for VAT. 

Additionally, if your expenses as a company exceed the voluntary registration threshold, you are still eligible to apply for VAT. This initiative is particularly designed for startups with no turnover.

Your Responsibilities As a Company

Registering for VAT is just one of the checkboxes in the compliance checklist for companies. Once you tick that off, there’s more to tick to make sure you are well within the regulations. Take a look below:

  • Companies registered for VAT must charge VAT on taxable goods and services they supply
  • Reclaim any VAT they have paid on business-related taxable goods or services 
  • Keep their financial records and transactions up to date for scrutiny
  • Report the total amount of VAT you have charged and VAT you have paid regularly to the government. 

If you have charged more than you have paid, you need to pay the difference to the government. However, if it’s the other way around, that is, you have paid more than you have charged, and you can reclaim the difference. 

Companies in the Real Estate Sector

VAT in real estate depends on whether it’s a commercial or a residential property. Supplies for commercial properties, including sales and leases, are subjected to the standard 5%. Residential properties are exempted from VAT. 

Furthermore, to make sure that developers recover the VAT they pay on construction materials for residential properties, there is a zero rate VAT on the first sale of residential property within 3 years of completion. Similarly, bare land, without any permanent structure, is exempted from VAT. 

Some of the eligible expenses for VAT recovery in the real estate are:

  • Construction costs (commercial properties)
  • Maintenance and repair service
  • Fees for property management 
  • Expenses for marketing and advertising 

It is important to note that free zones may have specific VAT treatments. Thus, it is best to check with the FTA for rates. 

Zero-Rated Sectors

Some sectors are rated at 0% for VAT. This means that businesses can reclaim VAT paid on purchases related to these zero-rated VAT sectors. These include:

  • Goods and services exported outside of the Gulf Cooperation Council
  • International transport and related supplies
  • Certain means of transportation, like aircraft and ships 
  • Investment-grade precious metals like gold 
  • Specific education services and goods
  • Specific healthcare services and goods 

VAT-Exempted

In VAT-exempted sectors, no VAT is charged or reclaimed. It includes the following:

  • Financial services clarified in VAT legislation
  • Residential properties
  • Bare land 
  • Local passenger transport 

Summary

VAT Rate  Standard 5% 
Mandatory threshold  AED 375,000
Voluntary threshold  AED 187,500 – AED 375,000
Categories   Standard VAT

Zero-Rated VAT

VAT-exempt 
VAT Filing  eservices.tax.gov.ae 
Monthly Filing  Companies with an annual turnover exceeding AED 150 million
Quarterly Filing  Companies with an annual turnover of less than AED 150 million
VAT Filing period  Within 28 days from the end of the tax period 

Compliance Regulation UAE

Economic Substance Regulations (ESR)

Economic Substance Regulations (ESR) require all companies who carry out ‘relevant activities’ to maintain an adequate economic presence in the UAE. 

The government issued Economic Substance Regulations (Cabinet of Ministers Resolution No. 31 of 2019) in April 2019, following their commitment to the OECD Inclusive Framework and an assessment of UAE’s tax system by the European Union Code of Conduct Group on Business Taxation. Furthermore, following Cabinet Resolution No. 57 of 2020, the Federal Tax Authority is now the national assessing authority for ESR. 

Let’s break it down. 

What’s Included in Relevant Activities

Entities that conduct one or more activities mentioned below are subjected to ESR:

  • Banking
  • Insurance
  • Investment fund management
  • Lease-finance
  • Headquarters
  • Shipping
  • Holding company
  • Intellectual property
  • Distribution and service center

To identify if a company is carrying out our relevant activities, the officials will take a ‘substance over form’ approach. It needs to be carried out for individual entities, and there is no minimum income threshold. 

What Does Adequate ‘Economic Presence’ Mean

The compliance checklist for companies that are involved in ESR includes maintaining an adequate economic presence. This entails:

  • Having a physical office or workspace 
  • A sufficient number of full-time employees residing in the UAE
  • Operating expenses which show actual local business activity 

Having a business address without actual operations is no longer considered sufficient.

Compliance with Tests 

Besides meeting the requirements for economic presence, companies need to satisfy three Economic Substance Tests. These are:

  • Core Income Generating Activity (CIGA) test
  • Directed and Managed test
  • Adequacy’ test

While businesses operating in high-risk intellectual property undergo enhanced ES tests, holding companies face reduced ES tests. Furthermore, if you fail to satisfy the ES tests, the UAE government may share this information with relevant foreign authorities. 

Risks of Non-Compliance

Non-compliance with ESR invites hefty penalties. Take a look at the table below:

Failure to file a notification AED 20,000 
Failure to file the report AED 50,000 fine + deemed a failure to meet ES Tests
Failure to offer accurate or incomplete information AED 50,000 + deemed a failure to meet ED Tests
Failure to meet the ES tests in the 1st year AED 50,000 + information exchange with foreign competent authorities
Failure to meet the test in the 2nd year AED 40,000 fine + information exchange + suspension, cancellation, or non-renewal of the trade license

Ultimate Beneficial Ownership (UBO)

An Ultimate Beneficial Owner is an individual who owns or controls 25% of the company’s shares or voting rights. These individuals benefit from the business even if their ownership is not direct. 

In order to align with international anti-money laundering (AML) and counter-terrorism financing (CFT) standards, the UAE decided to introduce UBO regulations. It helps to ensure transparency and combat financial crimes. Moreover, it makes financial transactions traceable and identifies real company owners. 

Different Types of UBOs

UBOs include a wide variety of individuals and entities. These are:

  • Direct owners
  • Indirect owners
  • Controllers
  • Economic beneficiaries
  • Trustees and nominees
  • Senior management

Who Needs to Comply?

UBO applies to all businesses in the UAE. This means that all companies on the mainland and free zones need to maintain a register of their UBOs. Additionally, they need to submit this data to relevant authorities. And if there’s any change, it should be immediately reported. 

Who’s Exempted?

Yes, certain companies are exempted. They include:

  • UAE government-owned entities 
  • Companies listed on recognized stock exchange
  • Financial authority-regulated entities 

Penalties for Non-Compliance

If you don’t comply with these regulations, your company may be subjected to:

  • Fines (AED 50,000 to AED 1,000,000)
  • Suspension of company license 
  • Legal action and financial penalties (repeat violations)

For a full breakdown of UBO violations and penalties, refer to the official UBO guidance by UAE authorities.

Conclusion

This compliance checklist for companies is just what you require to understand what VAT, ESR, and UBO entail, who needs to register for it, when, what they need to do, and how grave the penalties are. 

It is important to remember at all times that the UAE government makes no compromises regarding laws and regulations. It deals with non-compliance strictly and may cancel your license for repeated offenses. If you wish to build your company and grow here in the UAE, start by ensuring that all your activities are compliant. 

HRSG is a global, world-class business solution provider offering services in three broad categories: people solutions, business solutions, and finance and accounting solutions. With more than 30 years of experience backing us and an ISO 27001-compliant certificate, we are here to support your business growth. 

UAE Employment Visa

How to Get a UAE Employment Visa: Step-by-Step Guide
How to Get a UAE Employment Visa: Step-by-Step Guide 800 500 HRSG

The number of expats and skilled workers looking to secure employment in the UAE is growing every day. The UAE’s strategic location, innovative infrastructure, tax-free income, and business-friendly policies are just a few factors that make it an ideal destination for professionals from all walks of life.

Another factor that contributes to this large number of expats (about 88% of the population) in the UAE is its relaxed and simple employment visa requirements. But what steps must one follow to get a UAE employment visa​? This is what most people looking for career opportunities in this region struggle.

This blog contains a detailed step-by-step guide on how you can successfully obtain a UAE employment visa. By following these simple guidelines, you can easily get your UAE work visa and pursue your career in the region, so keep on reading until the end.

  • UAE Employment Visa: Eligibility Criteria
  • Documents Needed for Obtaining an Employment Visa​ in the UAE
  • Step-by-step Guide to Getting an Employment Visa in the UAE 
  • UAE Employment Visa Application Fee
  • UAE Employment Visa Cancellation

UAE Employment Visa: Eligibility Criteria

Before applying for this visa, you must first meet the following UAE employment visa requirements

  • The candidate applying for the visa must be 18 years of age or older. 
  • The candidate’s passport must be valid for at least 6 months beyond their stay period.
  • The employer sponsoring the candidate must possess a valid trade license and have no prior violations.
  • The job role for which you are applying must match the company’s activities.
  • The candidate can only work for the employer who is their sponsor.
  • The candidate must fall into one of the three skill or qualification classification categories, including Category A: Bachelor’s degree, Category B: Post-secondary diploma, Category C: High school diploma
  • Candidates must have a valid employment contract with a sponsoring UAE-registered company or employer.
  • Based on the occupation, candidates must have at least 2-5 years of post-qualification experience.
  • The candidate must have a clean criminal record and must show willingness to undergo police clearance.

UAE Employment Visa Application

 

Documents Needed for Obtaining an Employment Visa in the UAE

Here are a few key documents you must gather before proceeding with the application:

  • A copy of your valid passport
  • A passport-sized picture preferably with a clear or white background
  • Copies of your academic certificates verified by the Ministry of Foreign Affairs of your country and the UAE embassy
  • Medical certificates from UAE-approved health centers
  • Commercial license of the company or the company card of your employer
  • Entry Permit from the Ministry of Labor
  • Signed copy of the employment contract
  • Professional licenses, if applicable, i.e., for doctors, engineers, technical experts, etc.
  • Experience letters, if applicable
  • Emirates ID application form
  • Translated and attested police clearance certificate from the country of your residence
  • Copy of the trade license of the sponsor

Step-by-step Guide to Getting an Employment Visa in the UAE

Now that you have gathered all the required documents, let’s go one step further and look at the UAE employment visa process that you have to follow.

  • Get the Entry Visa Quota Approval

The process starts when the employer applies for the entry visa quota approval from the MoHRE (Ministry of Human Resources and Emiratisation). The quota varies from Emirate to Emirate.

For instance, Dubai-based employers can apply for one visa per nine square meters of office space. To increase the quota, they either have to move to a larger office or request a quota upgrade.

  • Submit a Signed Employment Contract

After that, you need to sign an employment contract in English, Arabic, and the native language of the employer and submit it to MoHRE for approval.

  • Work Visa Application Submission and Applying for an Entry Visa

Then the employer submits the work visa application, which contains your educational documents, passport, employment contract, etc. This application is reviewed and approved by the Ministry of Labor.

Then the sponsor can apply for the entry or residence visa on your behalf.

  • Get Your Employment Entry Visa

After that approval, you are issued a pink visa, which is valid for about two months. 

This visa allows you to enter the UAE and complete your remaining visa procedures, like getting an Emirates ID, health certificate, etc.  

  • Apply for Emirates ID

After your arrival, you will need to apply for the Emirates ID. This ID links to the candidate’s residency visa and serves as a key identification document.

To get this ID, you have to visit the Emirates Identity Authority (EIDA) center. Here, you will give your biometrics and present supporting documents like a passport and entry visa.

  • Get a Medical Certificate

Now you can visit a government-approved medical center in the UAE for some basic tests. The results of these tests affect the residency visa approval. The medical screening includes tests for fitness, HIV, hepatitis, tuberculosis, and other infectious diseases.

These tests should be taken within 14 days of your arrival. After obtaining certificates, the employer applies for the residency visa via the ICS website.

  • Submit Labor Contract

Within 14 days of the medical screening, the employer has to submit the labor contract to the MoHRE for review and attestation. This contract lists your terms of employment and is registered with the ministry.

  • Get Health Insurance

Next, you need to get health insurance from your employer, which covers basics like hospitalization, doctor visits, major medical procedures, etc. This insurance is mandatory for all employees in the UAE, as the MoHRE does not renew work visas if an employee doesn’t have a valid health insurance card from their employer.

  • Receive Your Employment Visa

It takes about five days after the previous step for you to get approval for the official work visa from the MoL (Ministry of Labor).

Employment Visa Processed

  • Get the Residence Visa 

Now the employee can apply for the residence visa by filling out the application and attaching the required supporting documents. This visa was initially stamped in your passport by the GDRFA. But now, the visa status and information are linked to your Emirates ID, which eliminates the need to physically get your visa stamped in your passport.

This renewable visa is valid for about two years, and it is necessary for completing formalities like registering cars, opening bank accounts, setting up a PO box, etc.

UAE Employment Visa Application Fee

Here is a brief overview of the fee you must pay to get this visa 

  • AED 200 is charged for all categories for requesting initial approval of an electronic work permit.
  • The fee for the approval of the new work permit for Category 1 is about AED 300.
  • The fee for category 2 is further divided into levels as follows i.e.: AED 600 for level A, AED 1,500 for level B, and AED 2,000 for level C.
  • For category 3, the fee is AED 5000.

The fee for the UAE work permits is usually covered by the sponsoring employer.

The employment visa cost in UAE​ can be between AED 1400 to AED 1800 based on your service provider and the Emirate you are planning to go to for work. The breakdown is as follows.

  • The fee for an entry permit = AED 200
  • Fee for medical fitness test = AED 300-600
  • Fee for Emirates ID issuance and biometrics = AED 170
  • Fee for Labor Contract Registration = AED 200
  • Fee for residence visa stamping = AED 600

UAE Employment Visa Approved

UAE Employment Visa Cancellation

The employment visa cancellation in UAE is initiated by the sponsor. The sponsor can either cancel the visa in person by visiting the offices of the GDRFA (General Directorate of Residency and Foreigners Affairs) or they can do it online through the GDRFA or Federal Authority for Identity and Citizenship websites.

Before canceling the employment visa, the sponsor first has to cancel the work permit or labor card of the worker through MoHRE’s website. The cancellation fee for this visa is AED 110 which is paid by the sponsor. The cancellation fees for the entry permit, work permit, and exit permits are AED 50 plus AED 10 for E-Service each.

After visa cancellation, you are given a 30-day grace period within which you can either change the visa status or exit the country. Staying longer than that may lead to fines or penalties.

Conclusion

When applying for a UAE employment visa, you have to meet every eligibility requirement and gather all the authentic and verified documents. This is only possible when you take the time to gather information regarding the UAE’s latest employment visa policies from a trusted source.

By following the above-mentioned steps, you can easily avoid making major errors when applying for this visa. You can also seek assistance from a reputable service that specializes in handling employment visa applications for the UAE. Their expertise and comprehensive support will streamline the process and ensure you are able to settle in and start your work in the UAE right away.

Contact us at HRSG if you wish to build a successful career in the UAE or you want to take your existing business to new heights. Our dedicated team will ensure a consistent growth in your every business endeavor with its expert insights and vast experience working in this region.

Leaves in Saudi Arabia KSA

Leaves in Saudi Arabia KSA: Annual, Sick, Maternity, and More
Leaves in Saudi Arabia KSA: Annual, Sick, Maternity, and More 800 500 HRSG

The Kingdom of Saudi Arabia (KSA) has emerged as a rapidly growing economy with a staggering GDP of 1,109.5 billion USD in 2024. This figure is projected to reach 1,276.03 billion USD by 2028, which goes to show how much potential it has for businesses looking to expand and for individuals looking to advance professionally with lucrative career opportunities.

The workforce of KSA comprises millions of local and skilled expatriate workers and there are robust laws in place to safeguard their rights. One such law is the statutory leave policy of the KSA, which outlines the regulations for leave in the region.

This blog gives you detailed insights into the leave entitlements in Saudi Arabia under the Saudi Labor Law. It covers conditions and rules for different types of leaves in the KSA, like sick leave, paternity leave, annual leave, and more, so keep on reading till the end.

  • Annual Leave
  • Official Public Holidays
  • Sick Leave
  • Maternity Leave
  • Marriage Leave
  • Paternity Leave
  • Disability Leave 
  • Examination Leave
  • Iddah Leaves
  • Hajj Leave
  • Bereavement or Compassionate Leave

  • Annual Leave

Every employee is entitled to a specific number of annual or earned leaves in the KSA under Article 109 of the KSA labor law. Following is a detailed account of these leaves to give you a better picture.

  1. Employees who have served an organization for more than five years are entitled to 30 days of paid annual leave. The workers with less than 5 years of service time at a certain business entity get 21 days of fully paid annual leave.
  2. The annual leaves are determined based on the number of calendar days. However, consequent to the approval of the employer, the employees can postpone their leaves to the next year if they wish to do so.
  3. Article 110 of the labor code gives employers the full authority to decide when employees can take their paid annual leave. However, they cannot delay annual leave more than 90 days after the end of the year.
  4. In case the work conditions demand a delay in the vacation leave, the employer must obtain written consent from the employee. It is worth noting that the postponement cannot be extended beyond the following year from the time when the leave was initially due. 
  5. Article 111 of the Kingdom of Saudi Arabia labor law suggests that employees have the right to claim their accrued leave balance if they are leaving the job without utilizing their annual leave period.
  6. Employees on annual leave are prohibited from working for any other employer as it is considered a serious offense. If found guilty of this crime, the employer has the right to deny their pay for the paid leaves for that period. They can also demand payment for earnings given to them.  
  7. The employer has the right to terminate an employee without pay if they take leave for 15 consecutive days without approval from the relevant department. The same rule applies if they take 30 days of unapproved leave in a year. In the former case, the employer must give a warning preferably written to the employee following 20 days of non-consecutive absence. In the latter case, following 10 days of consecutive absence the employer must issue a warning of termination.    
  8. The employer cannot terminate the worker while they are on paid annual leave in any case.

Annual Leave KSA

  • Official Public Holidays

The labor laws in the KSA clearly specify public paid holidays as well. Following are some key official public holidays in the KSA you need to look out for 

  • Eid Al Fitr
  • Eid Al Adha
  • National Day: 23rd September
  • Foundation Day – February 22
  • Saudi Flag Day
  • Government Holiday

Employees working on public holidays must get proper overtime pay from their employers according to the rules specified under the labor law. The employer must pay the hourly salary along with 50% of the basic pay as overtime pay to their employees if they are working on these days to make sure they are fully compensated for their time.

  • Sick Leave

The employees can take sick leave in Saudi Arabia continuously or intermittently for 120 days every year. Here are some important considerations 

  1. The employees get fully paid sick leave for the first 30 days. 
  2. After the first 60 days of sick leave, they get 75% or three-quarters of their total monthly pay.
  3. After 90 days the remaining leaves are unpaid.
  4. Employees during the probation period cannot get sick leave in the KSA unless they meet a specific criterion. They can get sick leave after completing a 90-day probation period.
  5. Article 82 of the KSA labor law establishes that the employer has no right to terminate an employee while they are on approved sick leave. 
  6. The sick leave after 90 days falls into the unpaid sick leave category, which is different from regular unpaid leaves. These leaves are counted when figuring out the service time of the employee in their organization.
  7. This leave has no bearing on the calculation of end of service benefits, gratuity, payroll accrual, and overdue vacation calculations.

  • Maternity Leave

  • The approved duration for this leave​ is about ten weeks in KSA. The exact dates are decided as per the discretion of the female employee. The leaves may begin 4 weeks before the expected date of delivery.
  1. Female employees also get six weeks of paid leave after the delivery date of the child. They can extend this leave for two months without pay.
  2. Employees can get one month’s leave with pay at the end of the maternity leave if their child is sick and needs proper attention from the mother. The employees are free to extend this leave to an additional month with no pay.
  3. If you are on maternity leave, you are allowed to combine it with your annual leave to get a maximum of 180 days of leave to rest and recuperate better.
  4. The unpaid maternity leaves are a part of the calculations when it comes to the service period or gratuity of the said employee.
  5. An employer has no power to terminate someone on maternity leave or when they face complications during pregnancy or following the delivery.
  6. Additionally, new mothers also get an additional one-hour nursing break for the first year after the delivery. These nursing breaks are a part of the working hours of the employee who has just had a baby.

Parental Leave KSA

  • Marriage Leave

According to Article 113 of the labor law, employees getting married are entitled to 5 days of paid marriage leave in Saudi Arabia to celebrate this important milestone in their lives. 

  • Paternity Leave

The male employees expecting a baby are entitled to 3 days of paid paternity leave in Saudi Arabia after the birth of their baby.

  • Disability Leave 

The KSA labor law suggests that employees injured will get 30 days of emergency leave. The leave of the next 60 days will be with 75% pay. The leaves after 90 days will be unpaid according to the law.

  • Examination Leave

The employees pursuing education are entitled to leave during exams, the exact number of which depends on the number of papers they have to take to pass the courses.

  • Iddah Leaves

After the death of their husband, Muslim women must complete the Iddah period, which is about 4 months and 10 days. The KSA labor code suggests Muslim women are entitled to paid leave for this period.

Non-Muslim female employees are entitled to 15 days of paid leave to mourn the loss of their spouse. 

  • Hajj Leave

Muslim employees are entitled to 10 to 15 days of paid Hajj leaves including the Eid Al Adha holidays. The employees cannot take a hajj leave more than once during the service within a company. Additionally, this leave is given only when the employee has not already performed Hajj before.

Moreover, employees who have been with a company for more than two consecutive years are the only ones who can qualify for this leave.

  • Bereavement or Compassionate Leave

Employees are also entitled to paid leave in the case of the death of their first- or second-degree relatives, like spouses, parents, grandparents, children, and other ascendants or descendants.

In this case, such employees are granted 5 days of paid leave to mourn the loss of their loved ones.

Conclusion

The Kingdom of Saudi Arabia has well-established laws to protect the rights of its workforce. The workers in the region are entitled to annual, public, and additional holidays such as Sick, Maternity, Iddah, Hajj, and Marriage Leave. If an employer fails to comply with these regulations under the KSA labor law, they will have to face serious financial and legal consequences.

Employees must familiarize themselves with the leave rules in the KSA to make sure their rights are protected, and employers must do so to streamline operations and tasks like payroll calculation and employee management.

You can visit us at HRSG if you are looking to get the best recruitment, payroll, accounting, tax, and audit compliance services for your businesses all over the world.

New Employment Visa Rules in UAE 2025

New Employment Visa Rules in UAE 2025? A Simple Guide
New Employment Visa Rules in UAE 2025? A Simple Guide 800 500 HRSG

The UAE has become the top destination for skilled workers from all over the world looking to advance their careers and have a meaningful and fulfilling work experience. This region attracts millions of expats every year owing to the relaxed UAE employment laws, unparalleled infrastructure, and countless growth opportunities that it has to offer.

The number one requirement for securing a good job in the UAE is to get a valid employment visa. However, due to a huge influx of skilled professionals in the region, the employment visa rules are often subject to change.

Without having a grasp on the new employment visa rules in the UAE, it is not possible for you to access the myriad career growth opportunities that this place has to offer.

But don’t worry, because this is what this entire blog is all about. This article lists some new employment visa rules in the UAE that you must keep in mind while applying to increase your chances of success, so read on to learn more.

  • UAE Employment Visa Types
  • New Employment Visa Rules in the UAE 2025
  • The Criteria for Eligibility
  • Document Requirements
  • Flexible Work Visa Rules
  • New Visa Rules for Job Seekers
  • Additional Notable Changes in the UAE Visa Rules 
  • Extended Golden Visa Eligibility
  • Easier Family Sponsorship
  • Green Visa Expansion
  • Visa Applications Fee and Processing Time
  • Cancellation Process for Employment Visa

UAE Employment Visa Types

The following are some basic UAE visa types according to the new employment rules.

  • Standard Work Visa

This visa is sponsored by an employer and allows employees to work in the UAE for that sponsor. This renewable visa has an initial validity of 2 years. Employers from private, government, and free zone entities can hire recruitment services to initiate standard work visa processes for the talent of their choice.

  • Green Visa

The green visa was launched in 2022 in the UAE with the aim of attracting skilled entrepreneurs, freelancers, and investors. This renewable visa has no sponsorship requirements, and it is valid for five years. Professionals who meet the green visa criteria enjoy more flexible residency and work regulations in the UAE.

  • Freelancers/Self-Employed Visa

This is a new type of employment visa that is issued to professionals with specialized diplomas or Bachelor’s degrees and proof of a freelance permit. Individuals with an annual income of AED 360,000 in the previous two years are eligible for this visa.

  • Skilled Employees

This visa is given to professionals whose skill level falls into the 1, 2, or 3 categories as specified by the UAE labor laws. Candidates with a bachelor’s degree and AED 15,000 monthly earnings can apply for this visa.  

  • Golden Visa

The golden visa is given to investors with deposits or properties worth over AED 2 million, or projects valued at AED 500,000. This visa is also offered to specialists in the fields of medicine, education, sports, etc. This visa has a validity period of 10 years.   

  • Job Seeker Visa

This visa is issued to professionals who meet specific qualifying requirements. It gives them permission to travel to the UAE and find work that suits their talents.

Visa Application UAE

New Employment Visa Rules in the UAE 2025

The employment visa rules outline several requirements that every candidate looking for career opportunities in the UAE must meet. The employment visa is issued to skilled professionals by employers based in the UAE.

These employers must have a valid business license, and they must not be involved in any labor law violation to be eligible to sponsor work permits.

The following are some key visa rules that you must keep in mind when applying for work in the UAE.

  • The Criteria for Eligibility

The new employment visa rules in the UAE state more relaxed eligibility criteria. According to these rules, you are eligible for this visa if:

  1. You are 18 years or older.
  2. You have a clean criminal record and proof of medical fitness from UAE-authorized health centers.
  3. You have a valid passport for at least 6 months beyond your intended stay period in the UAE. 
  4. You have a post-qualification work experience of 2 to 5 years.
  5. The sponsor has a valid license.
  6. You belong to one of the following three skill classification categories, i.e., category 1: Bachelor’s degree holders, category 2: Post-secondary diploma, or category 3: High school diploma.

  • Document Requirements

According to the new employment visa rules, every candidate must prepare the following documents to obtain the visa.

  1. A passport with at least six months validity
  2. Recent passport photos with a white background
  3. Entry permit issued by the Ministry of Labor
  4. Signed official employment contract
  5. Health Insurance
  6. Copies of education records
  7. Employer data, like a trade license and company card
  8. Medical screening clearance
  9. Police clearance certificate
  10. Emirates ID application form completed via the ICP portal or a registered local typing center
  11. Professional licenses for healthcare experts, teachers, engineers, etc.

Visa Stamped UAE

  • Flexible Work Visa Rules

The new employment visa rules offer increased flexibility and longer validity for foreign workers. The new rules allow for multiple entrances as well as a 90-day stay per visit. Apart from that, the authorities have also introduced remote work and freelancer visas under very relaxed conditions to further attract top talent.

  • New Visa Rules for Job Seekers

There are also relaxed regulations for new job seekers according to the new rules. Now, recent graduates from top universities and competent professionals can get employment visas with up to 120 days’ validity.

  • Reduced Processing Time

Various online methods have been introduced in the application process to simplify the procedure and reduce the processing time. The whole process from getting an entry permit to residence visa stamping only takes about 2 weeks.

  • Job Exploration Visa

The UAE authorities have introduced a job exploration or job seeker visa as well. This short-term visa is for professionals and fresh graduates from the top 500 universities approved by the Ministry of Education who have graduated within the last 2 years and are seeking a job in the UAE.

  • Additional Notable Changes in the UAE Visa Rules

The new employment visa rules give the residents of the GCC an extended validity and flexibility with the E-visa option.

People who have made their mark in the field of environmental sustainability through activism, research, or conservation efforts in the UAE are eligible for a 10-year resident permit with their Blue Residence Visa. These people can either nominate themselves or be nominated by appropriate authorities for this visa.

Another new step is the introduction of the Dubai Gaming Visa. This 5 to 10-year visa is given to e-sport experts who are at least 25 years of age and are known throughout the gaming industry for their accomplishments or contributions.

  • Extended Golden Visa Eligibility

The golden visa has been extended to add professionals from more sectors, like medical, IT, engineering, etc. It is also offered to outstanding academic students, investors, and entrepreneurs with approved projects or business plans.

  • Easier Family Sponsorship

The new employment visa rules have made family sponsorship easier by lowering minimum salary requirements and extending residency for dependents. It also allows unmarried kids to stay indefinitely with their sponsor.

  • Green Visa Expansion

The green visa has also been extended to include longer durations (up to 5 years) and diverse job categories. This visa can be issued to skilled workers, investors, or freelancers, even without any sponsor. The new rules also permit sponsorship of family members to further facilitate expat workers.

Visa Application Approved UAE

  • Visa Application Fee and Processing Time

The visa application fee for 2025 is estimated to be between AED 1,400 and AED 1,800. The fee varies based on the Emirate and the service provider you choose. The whole process typically takes about 2 weeks.

  • Cancellation Process for Employment Visa

The cancellation of the employment visa is also pretty straightforward. Only the employer who sponsored the visa can cancel it by submitting a request to the MOL or ICP. The employer has to clear the dues and obtain a signed cancellation consent. After cancellation, a 28-day grace period is given to the employee to change the status or exit the country without any fines.

The charges for entry permit, residency permit, or exit permit cancellation are AED 50, with AED 10 for e-Services.

Conclusion

Getting a UAE employment visa is not as complicated as you might think. By knowing the latest regulations, preparing the right documents, and following the correct visa application submission steps, you can easily get your UAE employment visa and start pursuing your career goals right away.

The information provided above can navigate the application process smoothly without major errors. So, make sure to consider it before you apply for employment in the UAE.

It is also a good idea to consult professionals who specialize in the UAE visa rules and have deeper insights into the job market in this area. This can save you so much time and trouble while you get your employment visa.

You can contact us at HRSG if you are looking to grow your career or expand your business in the UAE. Our experts can help you better navigate UAE’s changing visa and employment policies to ensure you get the results that you desire.

Mission Visa UAE

Mission Visa UAE: Duration, Requirements, Costs, and Benefits Explained
Mission Visa UAE: Duration, Requirements, Costs, and Benefits Explained 800 500 HRSG

Mission Visa UAE was announced in February 2022 by the UAE government. Also known as a Visit Visa for Work assignment, it is a single entry visa designed for professional workers who wish to work in the UAE. 

  1. What are its requirements? 
  2. How long is it valid? 
  3. How much does a mission visa UAE cost? 

We will be answering all of these questions and more in this blog for you. 

Mission Visa UAE: Introduction

Mission Visa UAE is a short-term work permit provided to eligible and experienced professionals. It is a single-entry visa that allows them to work in the UAE for limited-time assignments or on a project basis. 

In contrast to long-term residence or employment visas, Mission Visa UAE lets these individuals lawfully remain in the UAE for a maximum of 90 days. It is an ideal option for companies that have short-term labor needs or are looking to hire experts on a project-to-project basis. The visa is issued by the UAE Ministry of Human Resources and Emiratization (MOHRE). 

Note: It is different from the Special Mission Visa, which allows an individual to stay in the UAE for 16 days. It is non-renewable and non-extendable. Moreover, it is issued by the Department of Naturalization and Foreign Affairs. 

Work Permit Application

Requirements for Mission Visa UAE

The Mission Visa UAE requirements are quite simple. Below is a quick overview from the employer as well as the employee’s perspective. 

Employer Eligibility

As an employer, you must have the following to be able to sponsor a Mission Visa:

  • Valid trade license in the UAE
  • Be registered with MOHRE
  • Obtain a mission visa quota approval from MOHRE

Eligibility criteria and visa quotas vary depending on the company’s activities and are determined by the Ministry of Labor.

Employee Eligibility

As an employee, to be eligible for a mission visa, you will need:

  • Valid passport
  • Clean criminal record
  • Relevant qualifications and experience for the job 

Documentation for Mission Visa UAE

Below is a quick overview of the documents you will require for this visa. 

Employer

  • Copy of company’s trade license 
  • Active labor card
  • MOHRE approval 
  • Quota approval for the position.

Employee

  • Valid passport
  • Medical fitness certificate
  • Educational qualification certificate as required based on the role 
  • Employment offer letter 

Duration of the Mission Visa UAE

Mission Visa UAE is valid for up to 90 days. The visa is non-extendable and non-changeable.  If you want to apply for a new mission visa, the current visa must be canceled and the employee must exit the country before you reapply.  

Moreover, exiting the UAE before utilizing or completing the visa duration may result in automatic cancellation. In this case, if they wish to return, they will have to apply for a mission visa again. 

Process of Obtaining a Mission Visa UAE

The process of obtaining a mission visa in the UAE is fairly lengthy. Here’s all the details you need to know about the process. 

1. Apply to MOHRE for a Mission Visa Quota

Unless and until the Ministry of Human Resources and Emiratisation approves the mission visa (60 days) eligibility of your company and the visa quota, you cannot make any hiring. 

This registration and application process for the UAE Mission Work needs to be carried out by the PRO (Public Relations Officer) of the hiring company. Once they submit the necessary documents as required by the MOHRE, the company will receive the eligibility criteria and the quota percentage. 

2. Submit Mission Visa Application

Once you have the quota approval, collect the necessary documents from your new hire, including a copy of your passport, educational certificates, and medical fitness report. Make sure that the information on these documents is consistent and has no errors. 

The employee will also have to sign the mission visa application. Submit the application via MOHRE’s online portal. 

3. Submit Mission Visa Entry Permit

Once the mission visa application is approved, submit the mission visa entry permit. Only after this entry permit has been granted can the new hire enter the UAE. 

4. Post-Entry Checks

Upon arrival, the employee gets an entry visa stamped on their passport. They will also have to submit a copy of their UAE mission visa to their employer. They may also have to undergo medical tests for final clearance. 

Additionally, the employee will have to apply for a labor contract. They should read the terms carefully, sign them, and submit them for approval. Once approved, the employee gets a labor card and a UAE labor contract.

Mission Visa Cost UAE

The cost of the Mission Visa application is AED 100. However, the overall cost may range from AED 3,000 to AED 5,000. The final cost includes several factors:

  • MOHRE application fees 
  • Medical examination costs 
  • Processing fees for documents
  • Insurance costs 

Mission Visa Processing Time and Renewal

The process of obtaining a mission visa may take up to 2 weeks, from applying for the mission visa quota to receiving a labor card and being able to work in the UAE. 

A second visa can be applied once the employee exits UAE and their labor card has been cancelled. 

What If You Overstay?

Overstaying on a Mission Visa may result in hefty fines, deportation, or bans from entering the UAE for some time. Thus, it is wise to be mindful of your stay on the visa and exit the UAE before the visa expires. 

Benefits of Mission Visa UAE

There are significant benefits to obtaining a mission visa. Some of the most significant ones are listed below for you:

Salary Efficiency

Mission Visa allows you to get skilled workers for your projects without binding them to long-term contracts and the financial burden that comes along with it. Moreover, sponsoring employees for short-term projects does not always have to be heavy on your pocket. 

Faster Processing

The processing time for this visa is comparatively quicker than that of other employment visas. 

You’ll Never be Short-Staffed

As a company, you may not always need an individual with niche expertise on board with you full-time. Mission Visa allows you to bring these experts on board whenever you want. It also gives you the freedom to pick your expert from wherever you want. This means that as a business, you can always have some experts on the roster with you and get them to contribute when you wish. 

Conclusion

Mission Visa UAE makes it significantly easier to meet your short-term staffing needs for specific roles and projects that require expertise that may not be available. The best thing about the visa is its faster processing time. That being said, it demands equal responsibility and scrutiny like other visas as an employer. You must be careful of the mission visa quota assigned to you and act accordingly. 

HRSG is a globally renowned HR & Payroll service company in Dubai. We work closely with each of our partners, providing strategic and innovative solutions. Reach out to us to understand how Mission Visa UAE can be particularly beneficial for your company and how we can obtain it for you on your behalf. 

What Does a Payroll Company Do?

What Does a Payroll Company Do and Why Does Your Business Might Need One?
What Does a Payroll Company Do and Why Does Your Business Might Need One? 800 500 HRSG

Payroll is one of the most sensitive and compliance-heavy areas in your business. You are not just paying people. You are also managing taxes, deductions, legal obligations, and deadlines that can’t be missed. 

Get it wrong, and the consequences can be immediate and painful:

  • Employees lose trust when pay is delayed or inaccurate.
  • Tax agencies may impose fines or conduct audits for late filings or misclassifications.
  • You spend hours untangling errors instead of focusing on growth.

In short, mishandling payroll can damage both morale and your bottom line.

That’s where a payroll company takes the complexity out of payroll, handles the admin, and keeps you compliant. But what exactly do they do, and why might your business benefit from hiring one? Let’s break it down.

What Is a Payroll Company?

A payroll company is a third-party service provider that manages all aspects of paying your employees. From calculating salaries and tax deductions to issuing payslips and ensuring compliance with tax laws, they handle the intricacies of your payroll operations.

What Does a Payroll Company Do?

Here’s a closer look at the specific services offered by most payroll companies:

1. Employee Payment Processing

At its core, payroll involves making sure employees get paid the right amount, on time. A payroll company:

  • Calculates gross wages based on hours worked or salary
  • Deducts income tax, insurance, retirement contributions, and other withholdings
  • Processes bonuses, commissions, reimbursements, and overtime pay
  • Ensures correct net pay is deposited to each employee’s account

2. Tax Filing and Compliance

Staying compliant with tax laws is a major mandate for businesses. Payroll providers take this off your plate by:

  • Calculating federal, state, and local payroll taxes, like social security, medicare, state income tax, and local city tax
  • Filing tax returns on your behalf, quarterly and annually
  • Managing year-end forms for full-time employees, freelancers, or contractors
  • Keeping track of changing tax laws and regulations.
  • Handling tax notices or inquiries from authorities, like penalty letters or state audit requests

Payroll & Taxes

3. Direct Deposit and Pay Stub Generation

Instead of issuing physical paychecks, automatically transferring employee salaries to their bank accounts is faster, safer, and more convenient. Payroll companies:

  • Set up and manage direct deposit for employees
  • Issue physical or digital pay stubs with detailed breakdowns
  • Provide access to employee portals for pay history and tax documents

4. Employee Onboarding and Data Management

As part of payroll processing, providers help with:

  • Collecting tax forms
  • Setting up new employee profiles
  • Tracking changes in pay, status, benefits, or withholdings
  • Managing employee exits, final paychecks, and severance

5. Time Tracking Integration

Some payroll services integrate with time tracking software to:

  • Automatically calculate hours worked
  • Include vacation, sick leave, and PTO (Paid Time Off)
  • Minimize manual entry and human error

6. Benefits Administration

Full-service payroll companies help with:

  • Calculating and withholding health insurance premiums
  • Managing retirement plan contributions
  • Administering leave policies and paid time off
  • Syncing benefit deductions with payroll cycles

7. HR and Compliance Support

Many modern payroll providers also offer HR tools, including:

  • Employee handbooks and policy templates
  • Labor law compliance support
  • Guidance on employee classification, like contractor vs. full-time
  • Workplace posters and alerts for labor law updates

Why Might Your Business Need a Payroll Company?

Whether you’re a startup or a growing enterprise, outsourcing payroll can bring significant advantages. Here’s why:

1. You’re Spending Too Much Time on Payroll Tasks

Payroll is repetitive and detail-heavy. If you’re spending hours each month calculating salaries, reviewing tax rates, and generating reports, you’re losing valuable time that could be spent on strategy, product development, or customer acquisition. A payroll provider automates the process and saves you time.

2. You’re Worried About Compliance and Penalties

Tax regulations are constantly changing. A simple mistake can lead to penalties or audits. For example, you could miss a filing deadline or misclassify a worker. Payroll companies stay current with the latest laws and ensure compliance. This helps you avoid costly errors.

3. Your Team Is Growing

When you’re managing just one or two employees, manual payroll might seem manageable. But as you scale, payroll becomes more complex. Different pay structures, tax rates, and benefit plans require powerful systems. A payroll provider can scale with your team and ensure accuracy at every level.

4. You Have Remote or Multi-State Employees

Different states have different payroll laws, minimum wage rates, and filing requirements. If your team is remote or spread across multiple locations, it gets complicated fast. Payroll companies handle multi-state compliance with ease.

5. You Want Professional Recordkeeping

Payroll records must be accurate and well-maintained for legal and financial reasons. Providers generate detailed reports and maintain a secure record of every transaction, deduction, and filing. This makes audits, year-end reporting, or employee disputes easier to handle.

6. You Want to Improve Employee Experience

Employees expect timely payments, accurate pay slips, and easy access to their pay records. Payroll providers often offer self-service portals. Through these portals, employees can download payslips, update tax information, and view benefits. This makes their experience better and decreases your admin burden.

Payroll & Salary

How to Choose the Right Payroll Company?

Choosing a payroll provider depends on your business size, needs, and budget. Here are some key factors to consider:

1. Ease of Use

Is the interface intuitive? Can you easily run payroll, access reports, and manage employee data? Look for a solution that makes your workflow simpler.

2. Customer Support

Is help available when you need it? Check for support hours, response times, and whether you get a dedicated rep. Payroll mistakes require immediate attention, as they directly impact trust and morale.

3. Tax Filing Guarantee

Many providers offer a guarantee that they’ll cover penalties if they make a tax error. This kind of assurance is valuable when outsourcing compliance.

4. Integration Options

Does the service integrate with your accounting software, HR tools, or time-tracking system? Integration decreases manual work and improves accuracy.

5. Pricing Transparency

Understand the pricing model. Are you paying per employee, per payroll run, or monthly? Are there extra fees for year-end filings or direct deposit?

6. Scalability

Your payroll needs will grow. Choose a provider that offers advanced features like multi-state payroll, benefits administration, and HR tools as your business expands.

Final Thoughts

Running payroll involves managing taxes, meeting deadlines, handling documentation, ensuring legal compliance, and maintaining employee trust. A payroll company takes these moving parts and turns them into a smooth, reliable process.

If you are spending too much time on admin work, making frequent errors, or just want to free up headspace, outsourcing payroll might be the smartest move for your business. It brings efficiency to your business and peace of mind for you.

HRSG is a globally renowned HR & Payroll service company in Dubai. Our payroll and HR experts will help you streamline your HR functions, bringing about efficiency and accuracy in your operations. Contact us today to see how we can efficiently manage your company’s payroll needs.

End of Service Benefits in Saudi Arabia: How to Calculate Your Gratuity

End of Service Benefits in Saudi Arabia: How to Calculate Your Gratuity
End of Service Benefits in Saudi Arabia: How to Calculate Your Gratuity 800 500 HRSG

Think of the end-of-service benefits in Saudi as a financial cushion for employees at the end of their contract. Whether you’re moving on to a better opportunity or heading home after years in the Kingdom, the end-of-service benefit, also known as gratuity, is a legal right under Saudi Labor Law. The good part? It applies to Saudi nationals as well as expatriates. 

In this blog, we will break down the concept of gratuity and help you understand the following things:

  • What are the end-of-service benefits?
  • Law addressing end-of-service benefits in Saudi Arabia
  • End-of-service benefits in Saudi
  • Who is entitled to gratuity benefits? 
  • How to calculate your gratuity

What are the End of Service Benefits?

Gratuity, also known as End of Service Benefits (EOSB), is a financial reward given by an employer to an employee in recognition of their dedication, hard work, and service over the course of their employment. It is typically paid out when the employment relationship ends, whether due to resignation or termination.

Under Saudi labor law, an employee who resigns becomes eligible for gratuity after completing two years of continuous service with the same company.

On the other hand, if the employee is terminated, they are entitled to the full accrued gratuity provided they have completed at least one year with the company. For employers, gratuity represents a financial obligation that must be accounted for.

According to Article 2 of the Saudi Labor Law, all fixed components of an employee’s salary are included in the calculation of end-of-service benefits in Saudi Arabia. These include:

  • Basic salary
  • Housing allowance
  • Transportation allowance
  • Mobile allowance

On the other hand, variable benefits, such as sales incentives, ticket allowances, and bonuses, are excluded from the calculation as they depend on other factors.

Law Addressing End-of-Service Benefits in Saudi Arabia

The end-of-service benefits in Saudi Arabia are governed by the Saudi Labor Law under Articles 84 to 88. 

  1. Article 84: When an employee’s work ends, the employer must pay an end-of-service benefit. This includes:
  • Half a month’s salary for each of the first five years of service
  • One month’s salary for each year after that

The benefit is based on the employee’s last salary and should also include a proportional amount for any partial year worked.

  1. Article 85: If the employee resigns:
  • They receive one-third of the benefit if they’ve worked between 2 and 5 years
  • Two-thirds if they’ve worked more than 5 but less than 10 years
  • The full benefit if they’ve worked 10 years or more
  1. Article 86: It can be agreed that the salary used to calculate the end-of-service benefit does not include certain variable components like commissions or sales percentages.
  2. Article 87: Despite what’s stated in Article 85, the employee is entitled to the full benefit if they leave due to a situation beyond their control (force majeure). Also, a female employee gets the full benefit if she ends her contract within:
  • 6 months of getting married, or
  • 3 months after giving birth
  1. Article 88: When employment ends:
  • The employer must pay the employee’s wages and all dues within one week.
  • If the employee ends the contract, the employer has up to two weeks to settle the dues.
  • The employer can deduct any outstanding work-related debts from the employee’s final payment.

Benefits of End-Of-Service Benefits in Saudi

The end-of-service benefits in Saudi Arabia provide financial security and reward employees for their long-term service commitment.

  • EOSB offers a lump sum payment that helps employees manage expenses while transitioning between jobs or planning retirement.
  • Knowing there’s a significant reward at the end of long-term service motivates employees to stay longer with the organization.
  • The payout can be a key part of an employee’s retirement plan, especially for expatriates returning to their home country.
  • It acts as a token of appreciation for an employee’s dedication and years of service to the company.
  • In cases where jobs end unexpectedly, EOSB can help cover immediate living expenses or relocation costs.

Who is Entitled to Gratuity Benefits

The end-of-service benefits in Saudi Arabia are provided to both Saudi citizens and expatriate workers, as long as they’re employed under the country’s labor laws. The key factor for eligibility isn’t nationality but rather the length of continuous service with an employer. 

Minimum Service Requirements

To qualify for EOSB, an employee must complete a certain period of continuous service. These requirements are set by Saudi labor law and may differ depending on the employment contract type and the industry.

Here’s a simple breakdown of how minimum service requirements affect EOSB eligibility:

If the employer terminates the contract (not due to misconduct):

  • Less than 1 year: No EOSB is paid.
  • 2 to 5 years: Half a month’s salary for each year of service.
  • More than 5 years: Full benefit is paid.

If the employee resigns:

  • Less than 2 years: No EOSB
  • 2 to 5 years: One-third of the total EOSB
  • 5 to 10 years: Two-thirds of the total EOSB
  • More than 10 years: Full EOSB

The reason for ending the employment also influences EOSB eligibility:

  • Terminated by Employer (No Misconduct): The employee is eligible for EOSB if they meet the required minimum service duration. The payout depends on how long they’ve worked.
  • Terminated for Misconduct: In most cases, the employee loses their EOSB, especially if it’s clearly mentioned in their employment contract.
  • Mutual Agreement: If both parties agree to end the contract, EOSB is usually paid as per the terms outlined in the mutual agreement.

Employment contract KSA

How To Calculate Your Gratuity

In Saudi Arabia, gratuity payouts are based on two main factors: the employee’s basic salary and how long they’ve worked with the company. Let’s understand the process with an example. 

Suppose an employee was terminated by the employer, and there was no misconduct. 

Service duration: 7 years and 6 months (i.e., 7.5 years)

Step 1: Consider the Last Monthly Salary 

Last Monthly Salary = SAR 11,500

Step 2: Calculate the Benefits for the First 5 Years 

For years 1–5, a half-month salary for each of the first five years is required to be calculated. Therefore:

5 years × 0.5 month × SAR 11,500 = SAR 28,750

Step 3: Calculate the Benefits for the Remaining Years 

For years 6–7.5 (2.5 years), one full month’s salary for each year is required to be calculated. Therefore:

2.5 years × 1 month × SAR 11,500 = SAR 28,750

Step 4: Calculate the Total EOSB

To calculate the total EOSB, add a half-month salary for each of the first five years and one full month’s salary for each year.

SAR 28,750 (first 5 years) + SAR 28,750 (next 2.5 years) = SAR 57,500

Conclusion

End-of-service benefits in Saudi Arabia are mandatory payments employers make to employees when their job ends. Whether you’re a Saudi national or an expat, end-of-service benefits in Saudi Arabia are a reward for your dedication, service, and time invested in your role. 

These benefits offer financial security, reward long-term service, and apply to both Saudis and expats. That being said, gratuity eligibility depends on service duration, with clear rules on how it’s calculated under Saudi labor law.

HRSG is a leading HR services company in Dubai, globally known for its world-class business solutions. Our HR and payroll solution, Octofy®, simplifies and automates the way you manage your workforce. Consequently, it makes HR task management easier, more efficient, and more effective than ever. Contact us today and see what we have for you. 

UAE Public Holidays 2025: The Complete List

UAE Public Holidays 2025: The Complete List
UAE Public Holidays 2025: The Complete List 800 500 HRSG

2025 is a sweet mix of holidays, religious celebrations, national pride, and potential long weekends. Long weekends, fireworks, staycations, and mini vacations. Yes, it’s that time again!

Whether you are a 9-to-5 employee mapping out leave days or a tourist trying to catch Dubai’s famous National Day fireworks, knowing the UAE’s public holidays in advance is a hack to epic plans.

For this reason alone, we have crafted a list of UAE Public Holidays for you. Let’s go through it date by date, with tips on how to make the most of each one.

At a Glance: UAE Public Holidays 2025

Date Day Holiday No. of Days
1st January Wednesday New Year’s Day 1 Day
30th March Sunday  Eid Al-Fitr Start 5 Days
5th June Thursday  Arafat Day 1 Day
6th June Friday  Eid Al-Adha Start 3 Days
26th June Thursday  Islamic New Year 1 Day
5th September Friday  Prophet Muhammad’s Birthday 1 Day
30th November Sunday  Commemoration Day 1 Day
2nd December Tuesday  UAE National Day 1 Day

Note: Dates for Islamic holidays (Eid and Islamic New Year) may vary depending on the sighting of the moon.

Past Holidays

January 1 – New Year’s Day

The year starts with a global celebration: New Year’s Day on January 1st. You can expect fireworks in popular areas like Dubai Marina, Downtown Dubai, and Abu Dhabi Corniche. It’s a public holiday across all seven emirates. So, residents can relax after the busy holiday season or begin the year with a little getaway.

March 30 to April 3 – Eid Al-Fitr

Eid Al-Fitr translates to “Festival of Breaking the Fast.” It marks the end of Ramadan, a holy month of fasting, prayer, and reflection. 

In 2025, Eid Al-Fitr is expected to begin on Sunday, March 30th. The holiday is set to last 5 days. That’s one of the longest holiday breaks of the year!

Upcoming Holidays

June 5 – Arafat Day

Arafat Day, falling on Thursday, June 5th, is the second most important day in the Islamic calendar after Eid Al-Fitr. It takes place during Hajj, the pilgrimage to Mecca. Muslims spend the day in prayer and fasting, reflecting on forgiveness and compassion. 

Millions of people gather at Mount Afrat as on this day, Prophet Muhammad, peace be upon him, delivered his Farewell Sermon during his final pilgrimage in 632 CE. 

It’s a single-day holiday. But as it’s followed directly by Eid Al-Adha, it becomes a part of a potential long weekend or extended break.

June 6 to June 8 – Eid Al-Adha

Eid Al-Adha is also known as the “Festival of Sacrifice.” It begins on Friday, June 6th, and spans 3 days. It honors the willingness of Prophet Ibrahim to sacrifice his son in obedience to Allah’s command.

Traditionally, families who can afford it sacrifice an animal (a sheep or a goat) with a portion shared with the less fortunate. The animal represents the lamb that Prophet Ibrahim sacrificed to Allah. It’s a time of charity, compassion, and celebration. 

In some places, however, sacrificing an animal is not allowed. In such cases, people buy meat from meat shops and donate the same. Or they directly donate money to charities that arrange meat for the poor. 

What to expect:

  • Special mosque prayers
  • Long family lunches
  • Charity efforts across the UAE
  • Cities like Dubai to lit up 
  • Shopping malls and cinema halls to set up massive discounts 
  • Exquisite food like Quzi, Chicken Machboos, and Luqaimat.

Eid Al-Adha 2025 UAE

June 25 – Islamic New Year

The Islamic New Year, also called Hijri New Year, is expected to fall on Wednesday, June 25th, 2025, as per the current astronomical predictions. The exact date would depend on whether Dhu Al Hijjah, the 12th and final month in the Islamic calendar, is a 29-day or 30-day month.

It commemorates the Prophet Muhammad’s migration from Mecca to Medina. It also marks the beginning of the new Islamic lunar year. It is believed to be the start of the holiest month after Ramadan. 

The Islamic New Year, is typically observed as:

  • Dry day
  • All hotels, public spaces, and educational institutions remain close

Additionally —

  • Mosques hold special prayers and speeches discussing the importance Hijra
  • Families get together and eat together

September 4 – Prophet Muhammad’s (PBUH) Birthday

Mawlid Al-Nabi is the birthday of Prophet Muhammad (PBUH). It is expected to fall on Friday, September 4th, 2025. It’s not a flashy celebration. But many mosques host special sermons. Also, people often reflect on the Prophet’s teachings and values.

It’s typically a day of rest, spiritual reflection, and community. For many, it’s also a great chance to spend time with family or enjoy a peaceful Friday.

November 30 – Commemoration Day

It was in 2015, the late His Highness Sheikh Khalifa Bin Zayed Al Nahyan declared November 30th as Commemoration Day, previously known as Martyr’s Day. It honors the Emiratis who have sacrificed their lives in service to the UAE, like the first Emirati martyr, Salem Suhail bin Khamis. 

This day holds great emotional and national significance. Schools and workplaces pause to remember and reflect. A moment of silence is held at 11:30 AM across the country. Some of the initiatives taken by the UAE government to honor the martyrs are:

  • Housing programs to ensure their family’s stability
  • Quality education for the children 
  • Establishing Martyrs’ Families’ Affairs Office at the Crown Prince Court.

December 2 – UAE National Day

This is the big one!

UAE National Day falls on Tuesday, December 2nd. It commemorates the unification of the seven emirates into one country in 1971. It’s one of the most vibrant and patriotic times in the UAE.

What to expect:

  • Fireworks in Dubai, Abu Dhabi, and Sharjah
  • UAE flag on Burj Khalifa
  • Air shows at the Abu Dhabi National Exhibition Centre for the rulers of the Emirates, members of the Federal National Council, and Emirati citizens
  • Special aerial displays by UAE Air Force aerobatic team, Al Fursan
  • Free concerts and cultural shows
  • Decorations in red, green, black, and white everywhere, from cars to skyscrapers

In some years, December 3rd is also granted as an extra day off. So, this becomes a 2 or 3 day celebration. Keep an eye out for government announcements.

UAE National Day 2025

4 Tips to Make the Most of Your Time Off in 2025

Want to turn these holidays into mini-vacations? It is said that you can turn these 13 days of holiday into 45 days off with smart planning. Here are a few clever tricks:

  1. Plan leaves around long weekends, like Eid holidays, Islamic New Year, or Commemoration Day, to get more days off using just 3–4 leave days.
  2. Book early, especially for Eid and National Day. Hotels and flights can get pricey.
  3. Explore within the UAE. Don’t underestimate staycations. Ras Al Khaimah, Fujairah, and Al Ain offer relaxing retreats.
  4. Be flexible with Eid dates. They depend on moon sightings. So, confirm travel only after official announcements.

Wrapping Up

2025 is a balanced year of work and rest in the UAE. With multiple long breaks and a mix of solemn observances and national celebrations, there’s something for quiet family time, spiritual reflection, or vibrant fireworks.

Knowing these dates helps you plan better. On top of that, you can understand the rich cultural and religious fabric that makes the UAE such a unique place to live or visit.

So go ahead. Mark your calendar. Set reminders. Start planning your 2025 around these beautiful moments of pause and celebration.

HRSG is globally renowned for its HR services in Dubai. Our experience in simplifying business complexities and driving agility in your organization can set your business for unprecedented growth and productivity. Contact us today and see what we can do for you.

 

IT Jobs Dubai

Is Dubai Good for IT Jobs? Here’s What You Need to Know Before Moving
Is Dubai Good for IT Jobs? Here’s What You Need to Know Before Moving 800 500 HRSG

Dubai’s digital boom is a blueprint for cities globally. The IT market is on the verge of witnessing a massive growth spurt, driven by artificial intelligence, cloud computing, and other technologies. 

One thing is certain: To expand and conquer the world technologically, Dubai will need specialists in information technology and related fields. The number of jobs is going to grow. But should you move to Dubai for an IT role?

This blog will answer this question in detail. We will look at the factors driving IT expansion, salaries you can expect, work policies, and more. 

Two Important Factors Driving the IT Expansion in Dubai 

D33 Economic Agenda

The Dubai Economic Agenda (D33) aims to double the size of Dubai’s economy in the coming decade. It includes 100 transformational projects, one of which happens to be the ‘Sandbox Dubai,’ which allows testing and commercializing of new technologies.  

Some of the other projects include:

  • Launching a scale-up program for 30 companies to shape them into global unicorns
  • Developing an SME scale-up programme by identifying 400 high-potential companies

As for numbers, the agenda also includes increasing investments, be it foreign direct investment or private sector investment. Another goal is to generate an annual contribution of AED 100 billion from digital transformation projects to Dubai’s economy.

Of course, all of this will require tech support in one way or the other. Some may even require specialized job roles that are very niched and targeted while others may demand an approach similar to that of a polymath. 

Smart Dubai Initiative

Via its Digital Dubai Office, the Dubai government has launched 130+ partnerships with government and private sectors. Some of these initiatives are: 

  • Dubai Data Initiative
  • Dubai Blockchain Strategy
  • Dubai AI Roadmap
  • Dubai Paperless Strategy 

Of course, all these initiatives are rooted and backed by information technology. This means that tech leaders and specialists will not only be needed to set up the activities under these initiatives, but also maintain them and further expand on them. 

IT Employees Dubai

Benefits of Working in Dubai

Higher Salaries 

Dubai offers one of the most competitive salaries for all roles as compared to other top cities globally. This is especially true if you are a skilled professional in domains such as IT, finance, healthcare, and its likes. 

Tax-Free Income

Unlike other countries where your salary undergoes taxation, Dubai does not have a personal income tax policy. Which means you get to take home every penny you earn. 

Career Growth

Even if you start at entry level, there is a good chance of growing exponentially in your career in Dubai. Since the economy is rapidly expanding and the government is actively pushing for growth, many companies are expanding, and new projects are being launched. 

So if you actively work on developing your expertise and skill set, the chances for career advancement and professional networking can be quite high.  

Quality of Life

One of Dubai’s primary goals is happiness. As the government transforms the city through smart technology, they are parallelly working to enhance everybody’s short- and long-term happiness and wellbeing.  

They have a Happiness Agenda, a one-of-a-kind, scientific and systematic approach, in place for raising and sustaining happiness levels and measuring the impact on their residents and visitors. 

In addition to this, the city has excellent infrastructure, public transportation, residential areas, entertainment opportunities, and medical services. Leisure spots are another highlight of city life, and they contribute to the high quality of life. 

Cultural Experience

Dubai is quite like a home away from home, given its mix of cultures, foods, and languages. The city houses people from all over the world, making it culturally rich and making it a diverse experience for everyone. Moreover, everyone here is extremely warm and considerate. 

IT Salaries in Dubai

When we say that Dubai offers one of the most lucrative salaries, we are not joking. Below are the average monthly salaries across different IT roles in Dubai:

  • IT Engineer: AED 6,500 
  • Information Systems Specialist: AED 5,000 
  • IT Assistant: AED 3,500 
  • Assistant IT Manager: AED 9,500 
  • System Administrator: AED 7,500 
  • IT Manager: AED 12,500 
  • IT Infrastructure Manager: AED 12,000
  • IT Project Manager: AED 16,000
  • Technical Manager: AED 16,500 

IT girl working

Other Things You Need to Know

  • Employees can apply for a job from anywhere in the world. However, to live and work in Dubai, you will need a residence permit and work visa. 
  • You may also obtain a job-seeker visa if you want to visit the country to look for employment. 
  • Health insurance is mandatory for all employees, regardless of the category. 
  • Many companies may also include transportation and housing allowances as part of salary packages. 
  • Some employees may also be eligible for relocation assistance to move to Dubai.
  • There are generous leaves for all employees here. This includes annual leave, sick days, and maternity leave to guarantee a healthy lifestyle. 

Conclusion

If you are exploring job opportunities in the information technology industry in Dubai, there is no better time to do so. The Dubai government is extremely supportive and works relentlessly to streamline the legal processes for tech enterprises, as well as offer world-class support to companies. 

The city’s IT sector boasts global leaders like Meta, Microsoft, Google, IBM, Apple, Cisco, and Tata Consultancy Services. Moreover, this list is set to expand as the Dubai Chamber of Digital Economy attracts more startups to the city. 

Not to forget that Dubai Internet City (DIC) and Dubai Outsource Zone (DOZ) together have approximately 1,600 companies registered and 15,000+ skilled employees. And these numbers are only expected to grow. Finally, there is no doubt about the lucrative salaries and employee policies that ensure fair treatment.

HRSG is globally renowned for its HR services in Dubai. Our key presence in the UAE and KSA markets grants us ample knowledge and experience to simplify business complexities and drive agility in your organization. Our people, business, finance, and accounting solutions address important facets of your business for unprecedented productivity and growth. Contact us today and see what we can do for you. 

 

UAE Labour Card

UAE Labour Card 2025: Everything You Need to Know
UAE Labour Card 2025: Everything You Need to Know 800 500 HRSG

Many factors set UAE’s job market apart from the rest of the world. A strong and stable economy, tax-free income, and diverse career opportunities are just a few things that make this region an ideal destination for job seekers from all over the world.

The UAE’s authorities have introduced several policies and rules to protect the rights of both its employees and employers. One key step in this direction is the labour card. Every candidate looking for work must always have this card with them when looking for a job in the UAE.

But what exactly is this labour card and how can you get one for yourself? This is what this blog is all about. So, keep on reading till the end to know everything there is about the labour card in the UAE.

  • What is the UAE Labour Card 2025?
  • UAE Labour Card Eligibility Criteria
  • The Process for Getting a UAE Labour Card
  • Required Documents
  • The Applications Process
  • Ways to Check Your UAE Labour Card Online
  • Downloading the UAE Labour Card
  • UAE Labour Card: Fee, Expiry, and Fines
  • Modification or Renewal of the UAE Labour Card
  • Benefits of the UAE Labour Card

What is the UAE Labour Card?

A labor card is a form of identification that every worker in the UAE must possess and carry with them at all times. The Ministry of Human Resources and Emiratisation (MoHRE) or the relevant free zone authorities in the place of your work are responsible for issuing the UAE labour card. The labour card is a form of ID showing details regarding your work in the UAE.

This essential document for workers in the UAE establishes better employer and employee relations by facilitating the sharing of vital information. This information can also be used to determine employee benefits or for setting up payroll.

Initially, MoHRE issued physical labor cards but there was a change in the policy. Now workers get a digital version of the card that they can keep on their phones, or they can print these themselves if they prefer keeping a physical paper copy.  

Following is a list that shows the type of information you can find on your labor card:

  • The employee’s name
  • The name of the employer
  • The employee’s labor card number
  • The employee’s work permit number
  • The employee’s occupation
  • The nationality of the employee
  • Card Expiration Date
  • The employee’s personal identification number

Happy employee with UAE Labour Card

UAE Labour Card Eligibility Criteria

Every employee in the UAE regardless of the nature of their work, nationality, or the nature of their sector, i.e., public or private must obtain a labour card and an appropriate work permit to show compliance.

Following are a few considerations in this regard:

  • Every employee older than 18 and younger than 60 is eligible for the labour card.
  • The employee must be academically qualified for the role.
  • The employee must be physically and mentally fit and they must pass necessary medical examinations.
  • Foreign employees must possess the relevant certificates from their home country.

As an employer, you need to pay attention to the following details:

  • You must not possess expired labour cards.
  • Employers must strive to keep their records in order.
  • They must compensate the employees fairly in terms of salary and benefits based on their work.
  • The businesses must adhere to every MoHRE guideline.
  • The employers must provide the employees with the labour card within 60 days of their arrival.

Failure to do these things can lead to violations, which opens you up to fines and other penalties.

The Process for Getting a UAE Labour Card

Following are the main steps involved in the process of getting your UAE labour card:

Required Documents

First and foremost, you need to gather all the essential documents you will need to fill out the application. You can look at the following checklist for this purpose.

You will need:

  • The latest photograph (of the employee)
  • Company’s valid trade license Copy
  • Copies of employees’ passports and their entry visas
  • Health certificate of the employee
  • Employment contract (3 copies)
  • Academic credentials, depending on the job, i.e., a copy of a university certificate for a doctor, engineer, lawyer, etc.

The Applications Process

Following is the step-by-step process for obtaining a labor card in the UAE:

  • Foreign workers first need a valid residency visa along with a work permit to get a job in the region. The residency visa shows you are allowed to live and work in the country, and it is essential for getting your work permit or labour card. 
  • Next, you will need to obtain your work permit before legally starting a job in the UAE. Your work permit is mainly taken care of by the employer. You can usually get your labour card while applying for a work permit.
  • Next, your employer needs to get a visa quota approval from the MoHRE.
  • In the case of free zone companies, they must get this approval before the employee sets foot in the UAE.
  • The applicant undergoes a background verification process and necessary security checks.
  • They must get a signed contract letter in Arabic and English.
  • The ministry then issues the entry visa “the pink visa” which gives the employee entry into the UAE.
  • Next, the employee has to go through mandatory medical screening to obtain relevant documentation.
  • They also need to provide additional documents as required in the application form and visit the Emirates ID center.
  • After the fee payment, the labour card is issued to the candidate through their sponsoring company. 
  • Once the permit is issued, the passport, Emirates ID, and work permit are stamped officially.

The entire application process for the UAE labour card takes between 2 to 3 weeks to process. By following the above steps, you can ensure that unnecessary delays are eliminated.

Ways to Check Your UAE Labour Card Online

Following are the two ways you can easily check your labour card number

  • You can use the MoHRE app, which is available both for Android and iOS devices for this purpose. Simply log in to the app, click on your profile, and you will see every piece of information regarding your employment including labour card number, issue date, expiry date, etc. You can also see an electronic version of your labour card by clicking on “View Labour Card” from the app.
  • You can also visit your local Tas’heel service center to get your employment details like labor card number, contract, etc., in person.

Downloading the UAE Labour Card

The UAE authorities no longer issue physical copies of this card. However, you are allowed to download and print this card yourself if you prefer to keep a physical copy with you at all times.

Here is what you need to do to download this card:

  • Visit the official MoHRE website and head to the “Services” section.
  • Now you can select “New Enquiry Services” and then click on “Choose a Service”.
  • Next, you can choose “Print Electronic Work Permit” to proceed.
  • Now you will need to add information like Work Permit Number, Transaction Number, Person Code, Date of Birth, and the security code that appears on your screen.
  • Next, you can click on “Search” to see your details.
  • At the top right corner is the option “Print”. Click on it and your card will be downloaded and printed instantly.

Checking UAE Labour Card

UAE Labour Card: Fee, Expiry, and Fines

Fees

Following are the labour card or work permit fees from inside the country, i.e., for valid residence visa holders:

  • Work permit for persons sponsored by their kinship = AED 200
  • Work Permit for those sponsored by their kinship, including a two-year labour card = AED 300 for the first category, AED 2,000 for the second, and AED 5,000 for the third.
  • Juvenile Work Permit = AED 100
  • Temporary Work Permit = AED 100
  • Temporary work permit with 6-month labour card = AED 500
  • Part-Time Work Permit = AED 100
  • Part-time work permit with 1-year labour card = AED 500

Following are the work permit fees from outside the country for all employment types:

  • Applying for a work permit = AED 200 for each worker
  • Issuance of Work Permit  including Two Years Labour Card = AED 300 for Category 1, AED 600, AED 1,500, AED 200 for Category 2, AED 5,000 for Category 3
  • Work permit (recruitment and employment of workers aged over 65 years from abroad including a two-year labour card) = AED 5,000
  • Changing work permit = AED 200

Following are the fees for the Renewal of labour cards and Transfer of Employees from One Establishment to Another (All Contract Types)

  • Labour Card Renewal – Two Years =
    AED 300 for Category 1,
    AED 600, AED 1500, AED 2000 for Category 2,
    AED 5000 for Category 3
  • Issuing labour card instead of a lost or damaged card = AED 200
  • Changing labour card details or employment contract details = AED 200
  • Permit for transfer from one establishment to another = AED 200
  • Worker transfer and employment permit, including two-year labour card = AED 300 for Category 1,
    AED 600, AED 1,500, AED 2,000 for Category 2,
    AED 5,000 for Category 3.

Expiration

The UAE labor card is valid for 2 years for private employees and for 3 years in case the employee works for a government entity. In both cases, the employee must renew their labour card within 50 days following the date of expiration.

Fines

Not applying for a new card within the specified period can lead to a fine of AED 500. To check your fines, you can visit the MoHRE website, click on “services”, and then on “new enquiry service”.

Then you can select “choose a service”, and click on “fine calculator”. Next, you can enter your card number and security code and click on “search” to see your labour card fines.

Modification or Renewal of the UAE Labour Card

Every employee must renew their labour card within 50 days after it expires. They can do it by visiting the Tas’heel center. The official government website allows you to view the application status of your labour card renewal.

You need to enter your IN number on the application receipt and you will receive the new card in about 10 days. 

You can also modify your labour card at Tas’heel center by providing the relevant required documents and the reasons for making the change. In some cases, you will need a letter of approval from the relevant government agencies to go through with the modification process.

Benefits of the UAE Labour Card

Following are the main benefits of the UAE labor card for employees:

  • This card allows employees to access work-related benefits.
  • Employees can input the card information into their payroll systems, which helps them better manage their health insurance.
  • This card also makes it much easier to determine accurate work hours, sick day payments, and annual leaves.
  • This card ensures the employers adhere to all UAE labor laws or employment regulations, including a 48-hour work week with 8 hours of work every day, as well as overtime capped at two hours for most sectors, etc.

Conclusion

The UAE labour card is an important document that every employee must possess to show compliance with labor laws and to ensure their rights are protected at all times.

This card allows workers to get fair wages, health insurance, and several other benefits. This is why anyone planning to work in the UAE must understand the labour card requirements.

By staying informed, maintaining the necessary documents, and following the key rules, it is possible to avoid violations and guarantee both the employers and the employees stay compliant with the UAE labour laws and regulations at all times.

Contact HRSG today to navigate the UAE labour card processes without errors. From obtaining a labour card to ensuring timely and accurate fee payments, we can assist you with everything you need.

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