Awareness

Corporate Tax In UAE

How To Register for Corporate Tax In UAE: A Complete Guide​
How To Register for Corporate Tax In UAE: A Complete Guide​ 800 500 HRSG

Corporate tax registration is an important part of running a successful business in the UAE. To ensure seamless operations and to make the most of the region’s relaxed tax policies, every business needs to understand how to register for corporate tax in the UAE.

Ever since the introduction of the corporate tax system in 2023, every business operating in the region is required to register for this tax. However, most businesses have no idea how this registration process works.

Failing to file corporate tax returns on time can result in fines and even license cancellation. To avoid these issues, you need to stay on top of your corporate tax responsibilities.

This blog covers the detailed process for corporate tax registration in the UAE. Using this information, you can easily register for this tax and save yourself both time and trouble.

  • Understanding Corporate Tax in the UAE
  • Who Must Register for Corporate Tax in the UAE?
  • Exemption from the Corporate Tax
  • Corporate Tax Rate
  • How to Register for Corporate Tax in UAE: Step-By-Step Process
  • Common Mistakes to Avoid When Registering for Corporate Tax in the UAE

Understanding Corporate Tax in the UAE

The corporate tax is the direct tax on the net income of businesses that operate anywhere in the UAE.

The Ministry of Finance in the UAE introduced the corporate tax law in 2022 to fully implement it in the financial year 2023. The FTA’s Federal Decree Law 47 states that every taxable business, including those in the free zone, must register for corporate tax and get a tax registration number (TRN).

After registration, these entities will pay tax at a standard rate of 9% if their taxable income exceeds the AED 375,000 threshold. If the taxable income of a business is below this threshold, it will be charged with 0% corporate tax.     

Who Must Register for Corporate Tax in the UAE?

If your business falls into the taxable category under the UAE corporate tax policies, you must register for corporate tax. Every business that earns more than AED 375,000 annually must register for this tax on a mandatory basis.

The following are the main entities that must register for corporate tax:

  • Businesses in the UAE mainland
  • Freezone businesses conducting business with the mainland
  • Banking and financial institutions
  • Foreign entities with permanent UAE offices
  • Companies or entities that are managed and controlled within the UAE

Register for Corporate Tax In UAE

Exemption from the Corporate Tax

Some businesses in the UAE are exempt from corporate tax. Though FTA requires such businesses to register for corporate tax or value added tax, they are subject to a 0% tax rate.

Following are some exemptions from the corporate tax in the UAE:

  • The salary of the employee
  • Income from shares, dividends, or capital gains earned in a personal capacity
  • Entities involved in the extraction of natural resources
  • Intra-group transactions or reorganizations 
  • Real estate investments 

Corporate Tax Rate

The Federal Decree-Law No. 47 of 2022 of the UAE states that every taxable entity whose income exceeds AED 375,000 annually must pay corporate tax at the rate of 9%.

Companies whose taxable income is below AED 375,000 and the ones that operate in the UAE free zones are subject to a 0% tax rate. In the case of free zone companies, they must meet the Qualifying FreeZone Person criteria and possess qualifying income if they are to be taxed at a 0% rate.

How to Register for Corporate Tax in UAE: Step-By-Step Process

Following is the detailed step-by-step process for corporate tax registration in the UAE:

  • Gather required documents such as trade licenses, financial statements, company information, bank account information, contact details, passport and ID copies of owners, authorized signatories, shareholders, and directors.  
  • Access the Emaratax portal from the FTA website and register for a new account.
  • Login to the portal with your accurate credentials. You will see all taxable entities linked to your account on the dashboard.
  • If there are no taxable entities, you can add a new one to proceed.
  • Click on “Register for Corporate Tax” to begin.
  • Add entity details like entity type, i.e., mainland business, free zone company, etc., and trade license number, legal structure, and registration number.
  • Click on “Add Business Activities” and then enter the details about the specific activities conducted under your trade license.
  • Entities whose 25% or greater stake is owned by certain individuals must enter the complete ownership details.
  • Businesses that have more than one branch, must add the trade license as well as the business activities of each branch. 
  • Add your business address, phone number, email, and other contact details.
  • Add details like IDs and passport details of persons who are authorized to sign tax papers on your behalf. You must add the correct details of the authorized signatories as well as relevant proof of authorization.
  • After filling out the information, review the entire application carefully. Then tick the declaration box to proceed.
  • Finally, you can submit the registration form by clicking on the “Submit” button.

After submission, the FTA will review your application to ensure the details you have provided are all accurate. You can expect to get a confirmation email for the corporate tax registration along with a TRN in 20 business days. 

Calculating Corporate Tax In UAE

Common Mistakes to Avoid When Registering for Corporate Tax in the UAE

Following are some of the most common mistakes that you must avoid to ensure accurate corporate tax registration in the UAE:

  • Not registering for the corporate tax on time.
  • Entering incomplete or incorrect details of your business.
  • Not paying attention to proper record-keeping or documentation.
  • Not claiming tax incentives or tax deductions.
  • Not seeking assistance from corporate tax professionals. 

Conclusion

Most businesses find it hard to navigate the complex process of corporate tax registration in the UAE. Not paying attention to deadlines, financial record keeping, and proper filing of returns are just a few ways these businesses mess up the process and suffer a great deal.

However, with proper due diligence and a proactive approach, it is possible to handle your corporate tax responsibilities better and avoid issues like operational disruptions or fines.

Businesses can further streamline their tax registration and financial management processes by seeking help from tax professionals. These experts facilitate timely and accurate tax filing, thus ensuring full compliance.

You can visit us at HRSG to get the best corporate tax, VAT, and accounting services for your businesses all over the UAE.  

What is WPS in UAE

What is WPS in UAE? A Look at the Wages Protection System in UAE
What is WPS in UAE? A Look at the Wages Protection System in UAE 800 500 HRSG

The UAE government prioritizes protecting the rights of its workforce above all else. There are many policies currently in effect that ensure the region’s diverse and inclusive workforce is taken care of in terms of salaries, benefits, and other basic employee rights.

One big step in this regard is the implementation of the Wages Protection System (WPS) which is an electronic system that ensures the fair and timely payment of the salaries of the workers in the UAE.

The WPS system facilitates transparency and fosters trust between employers and employees by streamlining payroll processes and safeguarding workers’ rights.

This blog takes a closer look at the WPS in the UAE in detail. So, if you are new to the region and have no idea what WPS is in UAE and wish to learn more about the ins and outs of this innovative system, then keep on reading till the end.

  • An Introduction to the WPS in the UAE
  • Benefits of the WPS
  • The WPS Registration Process
  • How Does the Wages Protection System Work?
  • The WPS SIF Format
  • Rules for Naming Your SIF
  • Tips to Ensure Compliance with the WPS System in the UAE
  • Consequences of Non-Compliance

An Introduction to the WPS in the UAE

WPS Full Form

WPS stands for Wages Protection System. This innovative system was first launched in July 2009 as per the Ministerial Decree No 788. This initiative resulted from the combined efforts of the Ministry of Human Resources and Emiratisation (MoHRE) and the Central Bank of UAE.

This system was further reinforced in 2016 as per Decree No 739. In 2019, additional regulations and guidelines were introduced to increase the scope as well as the effectiveness of this system.

The WPS system refers to a digital salary transfer system that facilitates fair and timely payment of salaries for workers via financial institutions like exchange houses or banks.

WPS UAE protects the wage rights of employees by ensuring transparency as well as proper compensation every single time. WPS gives employers a single centralized database where they can upload the salaries, which MoHRE and Central Bank can validate to ensure fairness.

This system acts as an effective deterrent against fraudulent practices including intentional salary delays, illegal funding sources, and unfair compensation.

WPS mandates that every employer must pay salaries through accredited financial institutions, which ensures better monitoring of wage payments, thus promoting transparency.

This way, WPS prevents labor disputes by addressing every payment-related issue on time. For employers, this system automates payroll processes, saving time, and facilitating better record keeping, which helps in case of disputes.

Benefits of the WPS

WPS has a lot of benefits both for employers and employees. Here are some notable ones that you need to know:

  • It facilitates accurate tracking of fund movements like cash inflow and outflow, which eliminates fraudulent or illegal sources from your business.
  • WPS ensures transparency in terms of salary details by validating the data and forwarding it to a financial organization that disburses the funds.
  • This system ensures that salaries are paid on time, which safeguards employees’ finances and rights.
  • The timely salary payments give the workforce financial stability, which also reflects positively on their productivity.
  • WPS processes ensure your business shows compliance with the UAE labor laws.
  • The WPS streamlines the salary disbursal process by automating payroll tasks and eliminating manual errors, which saves time.
  • It gives employers hardcore proof that they can use to settle fraudulent non-payment cases.   

Wages Protection System in UAE

The WPS Registration Process

Every employer must register for the WPS if he or she wishes to show compliance with the labor laws and avoid potential penalties. However, before registering to this system, there are some requirements that you need to keep in mind.

  • The employer needs to have a corporate bank account registered within the UAE.
  • Your business must have a valid contract with a WPS agent, which can be a bank, exchange house, fintech, or any other financial institution. This agent will carry out the payment of the wages to the employees.
  • The wages must be paid according to the schedule stated in Ministerial Decree No. 788 as amended in Ministerial Decree No. 739 of 2016.
  • Every employer must pay at least 70% of all staff and at least 75% of wages or salaries.
  • Employers have to pay bank fees, provider charges, and other expenses related to payment costs or WPS.

After considering these requirements, you can proceed with the registration process. Employers can use MoHRE’s official website to register for the WPS. For registration, you have to add company details provided by the ministry.

After registration, you have to enter the following information into your portal:

  • Bank account details
  • List of employees
  • Details of the bank or agent you have a contract with 
  • The bank where the employees have an account
  • The dates on which salaries are to be paid
  • Payroll details

How Does the Wages Protection System Work?

Following are a few points that explain the working of the WPS:

  • Employer Registration

Businesses first need to register with MoHRE and an approved WPS agent.

  • Preparation of SIF

Employers then have to create SIF files in an approved format. These files must include employee information and salary details and must be submitted to a WPS-approved agent.  

  • Salary Check by MoHRE and Central Bank

After submission, the MoHRE and the Central Bank do a salary check. This ensures the data in SIF files is accurate and according to the WPS guidelines.  

  • Issuance of the Payment Order

After the WPS salary check and verification, the payment order is issued by the MoHRE and the Central bank to the WPS agent. In case of issues, the employers receive an email stating the errors that they need to remove.

  • Transfer of salary

After the issuance of the payment order, the WPS agents transfer the salary to the bank account of the employees. Some WPS agents issue a WPS payroll card which works like a regular debit card. This further facilitates better transfer and withdrawal of salaries   

The WPS SIF Format

SIFs are salary information files that are a must to ensure accurate payment processing and transfers. A SIF file is created in Excel using a very specific format. You need to add EDR or Employee Details Records to an SIF file. In this file, every employee has a row that starts with a separate EDR column.

Here is the general format of an SIF file:

A B C D E F G H I J
Employee details record Employee 14-digit labor card number Bank Routing Code Employee bank account number Start date of salary End date of salary Number of days for which salary is paid Fixed or basic salary of an employee Variable salary Number of

leave per year

You also need to add your company’s details or the Salary Control Records to the SIF file. Here are the main things you need to add:

  • Company name and ID
  • Payroll period (month and year)
  • Total number of employees
  • Total salary amount
  • Employee name and labor card number
  • Bank account or wage card number
  • Salary amount
  • Number of days worked
  • Overtime hours and the amount
  • Allowances and deductions

Rules for Naming Your SIF

Here are some important points you need to consider when naming your SIF file:

  • The name must be a combination of the MoHRE employer ID and the date and time.
  • The first 13 digits of the name must be the employer’s ID.
  • These digits should be followed by a date in the YYMMDD format.
  • The last six digits should represent the time in hhmmss format. 
  • All of these combined will give you the 25-digit SIF file name followed by .SIF extension.

Tips to Ensure Compliance with the WPS System in the UAE

Following a few things you can do to show compliance with the WPS system in the UAE:

  • Communicate the requirements, policies, and impacts of the WPS system clearly with your employees.
  • Ensure timely and accurate preparation and submission of SIF files.
  • Register with approved financial institutions.
  • Use payroll software to ensure accurate record-keeping.
  • Conduct regular audits to show WPS compliance.
  • Adopt transparent practices to reduce payment disputes.

Compliance with uae labor laws

Consequences of Non-Compliance

The failure to meet the WPS requirements opens you up to fines, penalties, and other legal complications. This is done to protect workers’ rights and prevent fraudulent practices. The fines for payment delays vary based on the size of your company.

Here are the consequences of non-compliance when it comes to WPS:

Companies with 100 or More Employees

  • If a company has 100 or more employees and they fail to pay the salary within 10 days of the due date, they will not get further work permits.
  • The second violation will result in complete work permit suspension. The third violation means the company must pay a fine of AED 5,000 per every unpaid worker.
  • Employers will not be able to issue other companies and the MoHRE can take actions against all other companies that they own.
  • The organization will be downgraded to a third category and the employees will be allowed to move.

Companies with less than 100 Employees

  • The first violation results in a warning from the MoHRE.
  • The work permit restrictions are applicable after the second violation.
  • The third violation will lead to fines and administrative closure in some cases.

Other Penalties

  • If the salaries are delayed for 30 days, the company will be referred to the juridical authorities by the MoHRE. 
  • Not paying for 60 days will lead to a fine of AED 5,000 per affected worker. The fine can also reach a maximum of AED 50,000 for multiple workers.
  • Providing incorrect information to evade salary payments will lead to a fine of AED 5,000 per affected worker.

Conclusion

Compliance with the WPS is the only way employers can ensure timely and fair payments of employee wages, safeguard employees’ rights, and protect themselves from severe penalties.

The WPS’s robust framework creates a fair and transparent working environment where every employee feels valued and appreciated. This is why every employer needs to implement this system if they wish to minimize salary disputes and take the productivity and efficiency of their operations to a whole new level.

Contact HRSG if you are looking for wages protection system implementation services for your business to streamline payroll processes and ensure timely and accurate payments to your employees.

HR Salary in Dubai

HR Salary in Dubai: What Roles Pay the Most?
HR Salary in Dubai: What Roles Pay the Most? 800 500 HRSG

Dubai’s booming economy has positioned itself as a leading business player in the UAE as well as the Middle East. With a diverse job market and relaxed taxation and business operation policies, this region has become the launching pad for countless successful businesses.

As more businesses move to this region, the need for skilled professionals is now more than ever. To make sure businesses acquire the right talent, they need professionals who are skilled in HR services in Dubai.

Human resources experts are currently very high in demand in this region, which means more career opportunities and attractive salaries for these professionals.

But exactly how much can you make as an HR specialist in Dubai? This is what this article is all about. So, if you wish to start your career as an HR expert in Dubai, you are at the right place.

  • Average HR Salary in Dubai
  • High Paying HR Roles with Their Average Salary in Dubai
  • Chief Head of HR (CHRO)
  • HR Director
  • Head of HR
  • HR Officer
  • Talent Acquisition Managers
  • Compensation and Benefits Specialists
  • Employee Relations Specialists
  • Factors Affecting HR Salary in Dubai

Average HR Salary in Dubai

Dubai is the top destination for you if you are an expert in HR. The HR salary in Dubai​ ranges from AED 15,000 to AED 30,000 per month. The exact figure may vary based on your experience, industry type, qualifications, etc.

This attractive HR admin salary in Dubai​ is the result of the diverse job market of the region, which encompasses HR career opportunities in a variety of industries, including but not limited to oil, gas, finance, tourism, and IT.  

High Paying HR Roles with Their Average Salary in Dubai

Now that you know how much you can make as an HR specialist in Dubai on average, let’s go one step further and discuss some high-paying HR roles that you can go for.

  • Chief Head of HR (CHRO)

A CHRO is the leader of the HR department of an organization. This professional oversees hiring policies, mentoring, employee well-being, development, and organization-wide communication. Their duties also include hiring, onboarding, training, performance management, benefits, and other “people functions”.

A CHRO can make AED 459,193 a year on average in Dubai. The salary of a chief head of HR can range between AED 286,537 and AED 715,882 per year.

HR Director Salary

  • HR Director

An HR director is responsible for creating and implementing HR policies, activities, and events in a company. They can also assist organizations with employee-related initiatives, onboarding, performance management, exit interviews, and promotion-related decisions.

HR directors can make AED 258,000 a year on average in Dubai. The salary for these professionals can range from AED 244,000 to AED 720,000.

  • Head of HR

An HR head leads the HR department operations and oversees people management. They are responsible for training as well as providing support to staff members.

Their roles also include providing professional leadership, developing employment policies, and executing strategies related to Recruitment and Selection, Employee Relations, Employee Engagement, Payroll, etc.

As a Head of HR, you can make AED 390,000 to AED 588,000 per year with an average yearly salary of AED 489,000.

  • HR Officer

The duties of an HR officer include managing employment processes, executing orientations and staff training, preparing job descriptions, managing hiring processes, providing counseling on policies, and supporting the development of HR initiatives.

The HR officer’s salary in Dubai​ is about AED 138,000 annually on average. The salary for these professionals can range between AED 110,000 to AED 204,000 per year.

  • Talent Acquisition Managers

The job of a talent acquisition professional is to determine staffing needs, develop recruitment policies, and lead branding initiatives. They help organizations find the right talent that meets their business culture and long-term goals.

The talent acquisition HR manager’s salary in Dubai is between AED 120,000 to AED 480,000 per year. The average annual salary of these professionals is AED 210,000.

Talent Acquisition Manager Salary

  • Compensation and Benefits Specialists

These HR experts are charged with coming up with fair and equitable compensation and benefit packages and ensuring that the current compensation policies show compliance with the latest legislation. They are also responsible for preparing reports, conducting audits, and performing job analysis or evaluation.

The average yearly salary of these professionals is AED 184,952. The salary may range from AED ‏133,685 to AED 229,175 based on experience.        

  • Employee Relations Specialists

The employee relations specialists’ duties include creating people policies, resolving conflicts, handling disciplinary grievances and appeals, ensuring employee engagement, negotiating with unions, and upskilling employees and managers.

These specialists can make between AED 144,000 and AED 216,000 per year in Dubai. The average salary is about AED 198,000 per year.

Factors Affecting HR Salary in Dubai

The following are the main factors that affect the HR professional’s salary in Dubai:

  • The years of experience that you have in a very specific HR role directly affect how much you will make.
  • The type of industry you work in also affects how much you can make as an HR professional.
  • HR professionals with more certifications and accreditations command higher salaries.
  • The size of the company you are working in also determines the salary and compensation packages. Larger companies offer higher salaries than SMEs.
  • And last but not the least, the country or city where you work also has a bearing on how much you can make as an HR expert. For example, HR executive salaries in Dubai​ and Abu Dhabi are much better than in other Emirates.

Conclusion

As an HR expert in Dubai, you can expect to make AED 180,000 to AED 360,000 per year, which is pretty impressive when compared with the salaries for similar roles in other Emirates.

However, the exact salary for these specialists depends on their experience, industry, qualifications, and the specific HR role that they are hired to fulfill. Dubai offers great career advancement opportunities for professionals in this industry due to its rapidly growing economy and an evolving business landscape.

So, if you are an HR expert and you wish to build a career in this industry, then Dubai and UAE are exactly where you need to be.

Visit us at HRSG if you are looking for exciting HR career opportunities in the UAE or if you are a business looking for better HR solutions, accounting systems, and other people solutions.

HR Salary in Dubai

HR Salary in Dubai: How Does It Compare to Other Cities?
HR Salary in Dubai: How Does It Compare to Other Cities? 800 500 HRSG

The UAE has seen significant growth in its workforce, companies, skilled workers, and more. To be precise,

  • 12.04% growth in workforce
  • 17.02% growth of companies
  • 13.23% growth in skilled workers 
  • 32.16% growth of new establishments  

Following the excellent growth of companies and new establishments, it is quite obvious that there is a growth in hiring, too. And if you are a human resource professional, there is no place like Dubai to work in, and for all the right reasons. The job opportunities are fantastic, it is also a safe city, you can improve your wealth and earning prospects significantly, and it’s home to a multicultural working population.

This blog gives you an insight into the HR salary in Dubai and how well it compares to some of the other popular cities across the globe. Let’s begin. 

HR Salaries in Dubai 

Dubai is one of those cities in the world that pays generously. The average salary for an HR professional here is AED 5,000 – AED 15,000 per month. Additionally, employees can expect additional monetary benefits like cash bonuses, referrals, and commissions. 

If you are an HR manager, you can expect anywhere between AED 5,000 to AED 30,000 per month. The average pay for this role is around AED 10,500- AED 15,500. If you are experienced in the role of a CHRO, the average annual pay is AED 660,000 per year.

Some of the industries that pay the most for HR roles are finance, technology, and oil and gas. Besides your salary, you can expect health insurance coverage, vacation benefits, and flexible/remote working hours. And the best part? Salaries in Dubai are tax-free, which means you earn 100% of your salary without any cuts. 

HR Salaries in New York

The average annual pay of human resources management ranges from $103,000 to $220,000. Within the HR domain, the average annual pay of an HR generalist is $111,783, and the HR manager is $88,294. Similarly, the entry-level positions start at $46,804 on average per year. As for CHROs, they make $410,920 annually on average. 

HR Salaries in Washington 

When it comes to Washington, the average annual salary ranges from $117,575 to $148,644. Most experienced professionals here can expect to receive anywhere between $104,038 and $163,395. The entry-level positions start at $52,615 annually. Human resource managers make $138,640 on average per year, while an HR specialist makes $84,192. Surprisingly, a CHRO in Washington makes $376,780 on average annually. 

HR Salaries in Seattle

The average total compensation for an individual in human resources in the Greater Seattle area is $150,000. The average range of salaries is between $94,000 to $196,000. The salary of an HR Manager is $147,837 annually, while that of an HR specialist is $85,989 on average. Finally, the CHROs here make $388,049 annually on average.

HR Salaries in Pittsburgh

Human resource professionals make $76,418 per year (average). The pay ranges between $107,432 to $135,821 annually. Most professionals, however, earn $95,063 and $149,299. At the entry level, you can expect to earn $114,596 as an HR manager. 

At mid-level, the earnings increase to $115,200, to $116,610 after 2-4 years, and $118,222 as a senior with 5-8 years of experience. The salary range for a CHRO is $261,547 to $452,886, averaging $345,607 annually. 

HR Salaries in San Francisco

When it comes to San Francisco, the average annual pay for human resources is $96,704. It ranges from $77,927 to $115,103. Most professionals here are making $86,875 and $106,335. If you are an HR specialist, you can expect to make $101,946 annually on average. 

However, if you are an Hr Generalist, the total average pay for a year is $116,873. Entry-level employees can make $61,000 to $88,500.

HR Salary in San Francisco

HR Salaries in Toronto 

The average HR salary in Toronto is CA$85,507 per year, ranging from CA$74,366 to CA$124,808. That for an HR manager is C$131,220 annually on average. Typically, it ranges between C$115,821-C$150,052, excluding bonuses and other details that determine the best pay. 

When it comes to being an HR specialist, the average base salary is $96,076 annually. You can expect up to $75,975 if you are an HR administrator. However, if you have held the role of chief human resource officer before or have the experience needed to become one, you can expect approximately C$202,069 per year. 

HR Salaries in Singapore

Human resource professionals typically make S$44,880 / year on average. With 5 -10 years of experience, you can expect  S$70,000 per year as an HR Generalist, S$80,000 as a manager, S$115,000 as an Associate Director, and S$170,000 as a Head on average. These numbers increase as your experience increases, going as high as S$280,000 for an HR Director (15+ years of experience). 

HR Salaries in Mumbai

The HR salaries vary greatly in Mumbai. An HR manager makes ₹9,50,000 per year on average. The annual salary range for this role is ₹3.6 Lakhs to ₹20 Lakhs for 3 years of experience to 15 years of experience. Comparatively, that of an HR executive is ₹ 3.5 Lakhs per year. Overall, the total salary for an HR professional averages ₹600,000 per year.

HR Salaries in London

The average salary of a human resources officer in London is £30,925. If you have 0-3 years of experience under your belt, you can expect £75,000 – £85,000 as an HR change manager, £45,000 – £50,000 as an HR analyst, £55,000 – £60,000 as a recruitment manager, and £90,000 – £105,000 as Head of HR. The salaries increase exponentially if you have more years of experience, going as high as £180,000 per year. 

Conclusion

HR salaries in Dubai, when compared to other cities, definitely stand their ground. With lucrative pay, generous perks, and tax-free income, professionals here enjoy a higher take-home salary. Moreover, Dubai’s thriving business environment is home to multinational corporations and industry leaders who offer unmatched career growth opportunities. If you stay around for long, you can enjoy handsome gratuity benefits. When it comes to the work environment, the Dubai government takes good care of the employees by reinforcing policies that make your office a good place to work.   

With a team of 60,000+ associates across 500+ locations, HRSG helps you rewire your organization’s workforce administration. Additionally, our tech-backed people solutions cater to your recruitment, executive search, and organizational development needs. We help you meet global standards and ensure that your employees, the most important asset, are happy.

Types of Leaves in UAE

Types of Leaves in UAE: Understanding UAE’s Leave Policies
Types of Leaves in UAE: Understanding UAE’s Leave Policies 800 500 HRSG

In order to ensure employee well-being and better work-life balance, the UAE government entitles employees to various types of leaves. In fact, the Federal Decree No. 33/2002 also known as the United Arab Emirates Labor Law deals specifically with employer-employee relations.

This comprehensive legislation was introduced to better regulate the private sector and a big part of it deals with the frameworks for granting leaves to employees.

Understanding different types of leaves under the UAE labor law policy is very important if a business wants to remain fair to its employees while showing compliance with the government guidelines at the same time.

This blog explores all the main types of leaves in the UAE that every business operating in the region should know. This can allow them to facilitate their employees better which can lead to a more harmonious and well-regulated environment so keep on reading till the end.

  • Annual Leave
  • Weekly Day Off
  • Emergency Leave
  • Sick Leave
  • Maternity Leave
  • Compassionate/Bereavement Leave
  • Parental Leave
  • Public Holiday Leaves
  • Sabbatical Leave
  • Umrah and Hajj Leave
  • Study Leave

Following are some of the most notable leaves that employees in the UAE are entitled to:

Annual Leave

Article 29 of the UAE employment law and the Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the “UAE Labour Law” states that every employee must be awarded an annual leave during each year of service. This leave may not be less than:

  • Two days per month in respect of the employees who have more than six months and less than 12 months of service in that organization.
  • 30 days paid leave per year for employees whose period of service is more than 12 months.
  • In case the employee’s service ends before they use their annual leave balance, employees will receive leaves proportional to the fraction of the final year worked.
  • For part-time employees, the actual working hours they spent as specified in the contract will be used to determine annual leaves.
  • Employees must use the annual leaves in the year of the entitlement.
  • Both the employer and employee may set the dates of the leaves according to work requirements.
  • According to UAE labor law, employers have to notify their employees about the date of the annual leave at least one month in advance.
  • The calculation of the annual leaves will include official holidays and other leaves that the employee took that fall within the annual leave period unless there are other provisions in the contract.

Annual Leave UAE

Weekly Day Off

Every private sector employee is entitled to at least one day off per week. This is mandated by Article 21 of the UAE labor law. Based on their own leave policies, employers may increase the number of weekly day offs.

Government employees work five days and get a half day on Fridays. The private sector may also align its policies accordingly to boost employee productivity and promote wellbeing.   

Emergency Leave

According to the emergency leave UAE labor law, employees are entitled to emergency leaves in the UAE and the number of leaves depends on the severity of the situation. Employees, however, need to apprise the employer at the earliest to ensure the regular work goes on without major hiccups.

The leave rules of each company are what govern emergency leaves and the UAE labor law has no specific guidelines in this case since it is difficult to predict emergencies and the leaves needed.

These leaves can be either paid or unpaid based on the leave policy of that company.

Sick Leave

Article 31 of the UAE labor law states that, after the probation period, the employees will get a 90-day continuous or intermittent medical leave in the UAE per annum.

Following are some of the main points of the sick leave policy in UAE:

  • First 15 days with paid leave.
  • The next 30 days with half pay.
  • Any remaining period will be unpaid leave.
  • During the probation period, the employee can get sick leave without compensation subject to the employer’s approval based on valid medical reports from a certified source.
  • Employees are not eligible for paid sick leave if they are on probation or if the medical issue results from their own misconduct.
  • They are also not eligible for paid sick leave if they violate safety instructions mentioned in the effective legislation in the UAE or the rules set out in the firm’s regulations.
  • To get sick leave, employees must notify the relevant personnel within a maximum of 3 days and attach a medical report issued by recognized authorities with the application.

Maternity Leave

According to the maternity leave UAE labor law, female employees can get maternity leaves of 60 days out of which 15 are at half pay while 45 are at full pay. After 60 days, these employees are also entitled to a 45-day unpaid maternity leave that they can either take continuously or intermittently. The maternity leaves can be applied before 30 days of the expected date of delivery. 

Mothers can also take an additional 30 days of paid maternity leave in the UAE if the baby is unwell. Female workers are also entitled to fully paid one or two up to 1 hour breaks each day for six months for nursing their child.

Compassionate/Bereavement Leave

Employees are entitled to bereavement or compassionate leave in the UAE when a close family member passes away. They can get:

  • Five days leave for the death of your spouse.
  • Bereavement leave in UAE is 3 days for the death of a close relative like a parent, child, sibling, grandchild, or grandparent.

Parental Leave

Under the leave policy in UAE, new parents (both mother and father) are entitled to five days of paid parental leave that they can use from the day the child is born to the day it gets six months old.

Parental Leave UAE

Sabbatical Leave

According to the leave policy in UAE, Emirati nationals are entitled to a paid sabbatical leave to complete their national duty or service as mandated by the Federal Decree-Law No. 6/2014. Emirati nationals are required to obtain approval before undertaking their national duty from the UAE National and Reserve Service Committee of the Armed Forces General Command.

Umrah and Hajj Leave

Employees in the UAE can get unpaid Hajj leave for up to 30 days only once during their employment in the company. 

There are no special provisions for the Umrah leave in UAE labor law. It is up to the employer to decide whether to add this leave to the annual leave or consider them as unpaid leaves based on their own policies.

Study Leave

The UAE government also allows for higher study leaves for its employees. However, this leave is only applicable if the employee is studying within the UAE. Another prerequisite for getting this leave is that the employee must have a service period of two years within that company.

For the study, employees can get 10 paid leaves annually to pursue their education and take exams. This step has been introduced to upskill the workforce and promote higher education in the region.

Public Holiday Leaves

According to Article 28 of the Labour Law in the UAE, every employee is entitled to fully paid leave on all official or gazetted holidays. Essential workers who have to work on these days are entitled to get proper compensation (pay for the day plus 50% of their basic wage) or they can get alternate leaves that they can use on their own will or according to the agreement they come to with the employer.

Following are some public holiday leaves that you can get in the UAE:

  • Commemoration Day (1st December)
  • National Day (2nd and 3rd December)
  • Gregorian New Year (1st January)
  • Eid Al Fitr
  • Arafah Day
  • Eid Al Adha
  • Hijri New Year: 1 Muharram
  • 12th of Rabi al Awwal (Prophet Mohammed’s birthday)

Conclusion

People working in the UAE enjoy fairly relaxed leave policies under the provisions of the UAE Labor Law which aims to create cordial employee/employer dynamics by protecting the rights of both parties.

The government in the region takes the wellbeing of its workforce very seriously which is why they have laid out an extensive framework when it comes to leaves both in public and private sectors.

Every business operating in the region must consider these leave policies when coming up with employee contracts. The leave policies of the UAE aim to create a healthier work environment where employees feel valued. This can in turn create a more motivated workforce that can drive your business as well as the country’s economy towards new heights.

You can visit us at HRSG today to get the best-integrated facility management, recruitment, and organizational development solutions to ensure long-term success in your business in the UAE.     

Tax Registration Number UAE

Tax Registration Number UAE: Everything You Need to Know
Tax Registration Number UAE: Everything You Need to Know 800 500 HRSG

A Tax Registration Number (TRN) is a unique number that consists of 15 digits and is assigned to businesses or individuals that get registered for VAT in the UAE. Also known as the VAT registration number, the TRN is assigned by the FTA to each business in the region for identification as well as differentiation purposes.

This blog covers the ins and outs of TRN verification UAE. This information will help you learn the eligibility, documentation requirements, and the complete TRN obtaining process so keep on reading till the end.

  • What is the TRN Number in UAE?
  • Format of the TRN
  • Why is TRN Verification Important?
  • Eligibility Criteria to Get TRN in UAE
  • Required Documents to get TRN or VAT Number
  • Step-By-Step Process for Getting TRN Number in the UAE
  • Processing Time

Tax Report Dubai

What is the TRN Number in UAE?

TRN or tax registration number is a 15-digit distinct number that the Federal Tax Authority (FTA) of the UAE issues to those entities that have registered for tax purposes in the region.

All taxable entities in the UAE must obtain this number if they are to fully comply with UAE’s tax laws including the corporate tax and VAT. The TRN verification number is extremely important as it facilitates the identification of businesses for VAT purposes. This number is a part of all key tax-related transactions or correspondences including VAT return filings, tax credit notes, as well as tax invoices. 

All businesses whose taxable supplies exceed the VAT registration threshold must obtain a tax identification number UAE and display it on their every tax and other financial document.

This number not only ensures tax compliance but also authorizes businesses to charge VAT on their goods thus playing a key role in UAE’s tax system and overall economy. 

Businesses can use FTA’s online portal for TRN by adding accurate information along with required documents. After the approval of your application, you will be officially registered for VAT. You will receive essential documents like a VAT TRN, a generated international bank account number (GIBAN), along with a registration certificate.

You can easily download this certificate from your EmaraTax account portal. All of these documents are essential for confirming your VAT registration status and for showing compliance with the tax requirements in the region.

Format of the TRN

Here is the format of TRN:

123-456789012-345

In this number

  • The first three digits represent the FTA
  • The next nine digits are unique identifiers for each business
  • The last three digits are check digits that are determined based on the previous nine digits

Why is TRN Verification Important?

Here is why TRN verification is crucial for businesses in the UAE:

  • Businesses are legally required to add their TRN in VAT returns, tax invoices, credit notes, etc. This way they can validate their VAT registration and show compliance in all transactions.
  • It ensures hassle-free communication between buyers and sellers by allowing businesses to track all transactions.
  • It allows businesses to claim back tax they already paid on certain purchases.
  • TRN gives your business a unique identity.
  • This number when used in your invoices makes your business look authentic and legitimate which builds customer trust.
  • Any communication with FTA is valid only when businesses add this number to the financial documents.
  • Every business operating in the UAE is mandated to use the Emaratax portal by the FTA to register for tax registration and get a TRN. This unique identification number is a must for businesses and individuals to fulfill their tax obligations and show compliance with the country’s laws.
  • Only those businesses that have a valid TRN certificate and a TRN are allowed to charge VAT to their customers.   

Upon registering for VAT, you automatically get a 15-digit unique number i.e., TRN from the FTA. This number sets that entity apart from the rest and they are required to add it to all of their VAT documentation.

The inclusion of TRN in such documents allows the government to track all of your financial transactions to ensure transparency as well as accountability in all financial activities.

Tax Return Dubai

Eligibility Criteria to Get TRN in UAE

For any company to register for VAT and get a TRN, it must meet a certain revenue threshold. Following are the main types of VAT registration and their criteria in the UAE:

  • Voluntary Registration

Businesses whose taxable supplies exceed the revenue threshold of AED 187,500 can voluntarily register for VAT. The revenue range for this type of registration is between AED 187,500 to AED 375,00.

Businesses with a revenue less than AED 187,500 are not required to register for VAT. However, they can still choose to register and get benefits like reclaiming input VAT on their expenses. 

  • Mandatory Registration 

The mandatory revenue threshold for businesses in the UAE is AED 375,000. If the revenue of a business exceeds AED 375,000 in the past year or is expected to cross this threshold in the next 30 days, such entities must register for VAT to avoid penalties. 

These rules ensure businesses of all sizes fulfill their tax responsibilities by adhering to all tax regulations. These criteria force larger businesses to mandatorily register for VAT to avoid fines and smaller businesses to register voluntarily to enjoy extra benefits.

Tax Form Dubai

Required Documents to get TRN or VAT Number

Following are some key documents that you must have by your side when applying for a TRN in UAE:

  • Business Documents

These include the Incorporation Certificate of the Company, Articles of Association (AoA), and Memorandum of Association (MoA).

  • Identification Proof

Copies of Emirates ID and Passports of the directors, partners, and authorized signatories of the company.

  • Authorization and Contact Details

Proof of authorization for the person applying for registration along with their contact information such as address, cell no, and email.

  • Financial Documents

These include bank statements that validate the business’s bank account details. Audited financial statements or financial reports such as proof of financial status are also required.

  • Additional Documents 

You will also need:

  • Power of attorney documentation (if applicable)
  • Partnership deeds (if applicable)
  • Customs registration documents (if applicable)
  • Details of business activities or the nature of supplies
  • Other relevant documents about the specific nature of the business

Step-By-Step Process for Getting TRN Number in the UAE

Following is a detailed step-by-step procedure to help you apply for the VAT registration number:

Step 1: Visit the FTA’s official website and create an EmaraTax account by adding your email and other relevant information. Activate this account using the confirmation email sent to your email ID.

Step 2: Log in to your account using accurate credentials. After that, navigate to the dashboard to proceed.

Step 3: Create a new taxable person profile. To do this, you need to add details like legal name, trade name, contact info, business activities, and other business details.

Step 4: Next, you can click on “View” to access your profile or newly created taxable person account.

Step 5: Go to the VAT section and click on “Register” to initiate the process.

Step 6: Fill out the registration form by adding the information about your finances, bank accounts, annual turnover, etc. After that, upload copies of your required documents that were mentioned in the previous section.

Step 7: Review the entire application one more time with great care to ensure accuracy. After verification, you can submit your application and wait for the approval.

Step 8: The FTA will review your application and request additional clarification or relevant information if the need arises. If everything checks out, the FTA will approve the application and issue a VAT registration certificate along with a unique UAE TRN.

These are the steps that you must follow to successfully register for VAT services and get a TRN to ensure compliance with UAE’s tax laws.

Processing Time

It can take up to 20 business days for a business to obtain a TRN in the UAE. In some cases where FTA needs more information to make the decision, it can take some extra days before you get the approval.

Conclusion

Every business operating in the UAE that is eligible for VAT must also obtain a TRN. This number gives your business a distinct identity and it helps you ensure legal compliance. Obtaining TRN is crucial since failure to do so can lead to fines and penalties.

This unique number facilitates better communication between your business and FTA. This number makes your business appear authentic which builds credibility in your customers when it comes to the legitimacy of VAT charges.

This is why you need to obtain your TRN as soon as possible to resume your operations in the region without major disruptions.

You can contact us at HRSG to get the best tax and TRN registration services in the UAE. Our dedicated team of experts can guide you to ensure accurate document filing. With our ongoing support, we can guarantee tax compliance as well as adherence to FTA guidelines for your business in the UAE.

HR Outsourcing Dubai

What is HR Outsourcing (HRO)? Types & Benefits
What is HR Outsourcing (HRO)? Types & Benefits 800 500 HRSG

Struggling between recruiting, payroll, and compliance? You may barely have the time to focus on the core aspects of your business. Sounds familiar? If so, you are not alone. Hundreds and thousands of business owners struggle to balance operational tasks with growth activities. In fact, 36% of HR leaders lack the resources to recruit top talent. 

This is where HR outsourcing, otherwise called HRO, comes into the picture. What is it? What are its types and why should you explore this? We’ll answer all of this and more in this blog. 

What is HR Outsourcing?

HR Outsourcing refers to the practice of hiring a third-party expert to handle all your HR operations—hiring, payroll, compliance, employee engagement, and more. This third party may manage some or all of HR operations, depending upon a business’s unique needs. 

Why would they do it? The short answer is access to specialized experts, top talent pools, advanced tools, and scalable solutions. This is beneficial for companies of all sizes that may lack the necessary resources to build a fully functional and well-equipped HR team in-house. 

Types of HRO Services

As we mentioned, a third-party expert may handle some or all of your HR needs. To help you understand it better, here is a breakdown of the specific sub-services that make up the larger umbrella of HR outsourcing services. 

  • Recruitment Process Outsourcing (RPO)

Recruiting employees is not as simple as it used to be. With complex role functions and newer job roles, finding a candidate who fits the bill can be challenging. Moreover, you need to undertake a needs assessment to identify your company’s unique hiring needs.

Not to forget the long screening, assessment, and interview cycles that may take anywhere from a couple of days to weeks and months to fight for the ‘right’ candidate. “Why?” you may ask. Well, because you may not have access to a qualified talent pool in the first place. Another hurdle could be offer management. This includes creating the perfect offer that aligns with the company’s needs, is compliant with the industry standard, informs the candidates about it, and answers an endless list of questions that they may have. 

RPO is your company’s strategic decision to make screening and hiring more efficient and effective. RPO experts take care of everything for you. They:

  1. Have access to the qualified talent pool. 
  2. Will work with your internal team to conduct a needs assessment.
  3. Will study how your hiring is affecting your operations.
  4. Will create a custom solution.  
  5. Have the necessary Service Level Agreements (SLAs), technology, and reporting systems in place. 
  6. Are experts at screening, assessing, and interviewing candidates to identify the fit. 
  7. May also support your team during onboarding.
  8. Provide you with important reports like time-to-fill and cost-per-hire.

  • Payroll Outsourcing

Payroll is an important function of a company. Unfortunately, it can get equally complicated, especially with tax deductions, law compliance, printing pay cheques, setting up direct deposits, and more. 

Payroll outsourcing teams take all this headache away, ensuring your employees get paid on time, and your company is compliant with legal regulations. As a payroll outsourcing team, they will need access to your business bank account and employee time tracking system. Once they have access to this, they will take care of your payroll activities. This means:

  1. Tracking and implementing benefit deductions 
  2. Calculating taxes and withholding the right amount.
  3. Maintaining confidentiality on wage garnishment and corporate tax filing. 
  4. Eliminating software concerns.

Payroll Dubai

  • Compliance Outsourcing

Compliance outsourcing means having experts take care of monitoring, auditing, and implementing compliance with legal and regulatory requirements. As such, these experts help you avoid penalties, follow labor laws [local, national, and international], as well as maintain industry standards. These experts will also assist you in developing policies and evaluating potential risks. Additionally, they may also provide employee training on legal and regulatory requirements.

  • Benefits Administration Outsourcing

Employees deserve more than just salary for the way they help your company grow—for instance, health insurance, wellness programs, and retirement plans. Unfortunately, finding the right partner who will offer these to your employees on your behalf at a cost-effective price is challenging.

A third-party benefits administration outsourcing partner has all the contacts you need. They can get your employees high-level programs at low costs which are attractive, compliant, and related to your employee’s needs. 

  • Training and Development 

As an employer, you are responsible for your employee’s learning and professional growth. Consequently, you need to periodically invest in training programs and workshops that bridge the skill gap and enhance present skills. 

Training and development outsourcing gives you access to top-class professionals, each well-known in their field for designing and delivering employee training programs. They offer customized learning solutions that are best suited for your employees. 

Training and Development

  • Employee Relations

Another important function of HR that can be outsourced is employee relations. This means that a third-party partner acts as a mediator between you and the employee. They offer counseling and conflict resolution sources. Some of the key areas they can address on your behalf include:

  1. Workplace issues
  2. Handling grievances 
  3. Labor relations
  4. Attendance issues 
  5. Performance issues
  6. Disciplinary actions 

  • Performance Management

Employee performance is key to your company’s success and growth. Performance management outsourcing gets you expert support for managing your employee performance reviews, goal setting, and feedback processes. In fact, it makes the entire process extremely simple, objective, and streamlined, considering that feedback processes can often get complex and biased at times. 

Benefits of HR Outsourcing

By now, you must have figured out a couple of benefits of HRO services. We will state them explicitly for you for better clarity and understanding. 

  • Saves Precious Time

HR outsourcing services can take care of routine, repetitive tasks such as employee attendance, tax withholding, and payroll. This way, your in-house HR team can focus on other activities. 

  •  Cost Efficiency

Companies often spend a lot to attract top talents, approach them, and hire them. Moreover, when employees leave, the cost of hiring a new employee may be high. HRO services take care of everything from attracting to hiring talents. In fact, they have a talent pool often readily available for you to hire from. 

Furthermore, when you outsource HR functions, you may not require a full in-house team and train them. At most, you may need 1-2 individuals to collaborate with the third-party partner. 

  •  Access to Expertise

HRO providers are experts in their fields. They stay updated on the latest HR trends, laws, and technologies, ensuring your business benefits from industry best practices

  • Better Compliance

HRO providers are also well-versed in labor and employment laws. Consequently, they not only help you bridge the current gaps in your practices but also point out potential risks and give you solutions for them. This keeps you free of penalties and legal actions. 

  • Scalability and Flexibility

As your company grows, your need for HR efficiency grows with it. HRO provides you with the necessary resources and flexibility to expand as you like.

Conclusion

Outsourcing your HR functions can be a complete game-changer for your company. It can free up essential time, which can be invested into better processes that help your company grow. 

We, at HRSG, can support you to streamline your HR functions and improve their efficiency. Our tech-enabled solutions are built keeping in mind your company’s unique needs. The solution combines a variety of HR functions, relieving you from day-to-day tasks and allowing you to focus on other value-adding initiatives. 

Our Managed Staffing solution, for instance, takes care of everything from onboarding to benefits, payroll processing, and matter monitoring. We also offer verification and screening services with the help of activities such as pre-employment background checks to ensure your workplace is safe with every hire. 

Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, is happy with you. 

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs?

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs?
How Do IT Salaries in Dubai Compare to Other Major Tech Hubs? 800 500 HRSG

Dubai is a thriving hub for IT and tech. This flourishing tech ecosystem aligns with Dubai’s aim to become a premier hub for tech companies by 2030. At present, the city is home to more than 2,300 technology companies. Moreover, initiatives like Sandbox Dubai, a startup accelerator program for ambitious pre-seed to seed stage tech entrepreneurs, are helping founders test and market new products and technologies for greater innovation. 

Consequently, you can expect more role openings and better opportunities. You may ask, “What does the payout look like?” Today, we are going to answer this question for you. This blog will explore what makes Dubai a tech hub and compare the IT salaries here with other major tech hubs. 

What Makes Dubai a Tech Hub?

We will keep it short and crisp. Here are the top reasons Dubai is a leading tech hub to watch out for: 

#1 – Tech Infrastructure & Ecosystem

UAE, specifically Dubai, continuously seeks ways to upgrade its infrastructure to make it one of the best to exist. This has resulted in many tech parks, innovation centers, and research and development hubs. Moreover, the officials are working on improving the state of the internet, connectivity, and digital infrastructure as well, all while keeping in mind the privacy and security of the users. 

Dubai has the most significant data center ecosystem in the UAE, featuring the following:

  • 18 colocation data centers
  • 237 cloud service providers 
  • 18 network fabric providers

This rapid expansion is expected to add $181 billion (AED664.79 billion) to UAE’s economic value over the next 10 years. While tech giants like Microsoft, SAP, and AWS are already operating here, other players like Equinix are also expanding their presence. 

Collaborative platforms and initiatives like the Sandbox Dubai further help balance novelty and experience, allowing new tech entrepreneurs to learn from seasoned tech leaders. This helps them test and refine their products and technologies early on, setting up the stage for global expansion. 

#2 – Booming Tech and ICT Landscape 

Information and Communication Technology (ICT) spending in the UAE has increased considerably, thanks to increased digitalization. Moreover, the adoption of leading technologies like the Internet of Things (IoT) and artificial intelligence (AI), cloud, big data, and more has led to a boom in the industry. As a result, leading companies are investing in research and development to enhance these technologies further. 

#3 – Favorable Environment

Another very important factor contributing to Dubai’s growth as a tech hub is free zones. These include the Dubai World Trade Centre, Dubai Internet City (DIC), and Dubai Silicon Oasis (DSO). These free zones operate with:

  • Tax exemptions
  • Allowance for 100% foreign ownership
  • Ease of business setup

How Do the Salaries in Dubai Compare to Other Major Tech Hubs Globally?

IT Salaries in Dubai

The average IT salary in Dubai, United Arab Emirates, is AED 8,250 monthly. Furthermore, the average salary for an IT engineer is around AED 6,500 – AED 12,000 per month. Similarly, for a software engineer, it ranges from AED 227,997 to AED 440,760. 

IT Salaries in Silicon Valley 

Located in San Francisco Bay, Silicon Valley is unarguably one of the best tech hubs in the world. It houses some of the biggest giants like Google, Meta, Tesla, and Apple. What makes it the best is the presence of excellent funding, the pool of talented employees, and an innovative culture. 

A back-end software worker’s average IT salary in Silicon Valley is around $158,000 annually. For an AI engineer, it is approximately $156,648 and $200,000; for a data scientist, it is $120,931; and for an information system manager, it is $164,070. 

Google Office Silicon Valley

IT Salaries in the Greater Boston Area

The Greater Boston Area is another well-known tech hub and home to prestigious institutes like Harvard and MIT. This area is a major player in biotech and AI research. 

The average IT salary here is $89,749, typically between $78,770 and $98,898 per annum. That for a Software Engineer is $161,700, IT Specialist is $95,005, Senior Software Engineer ranges from $160,400 to $253,750, and Cloud Architect is approximately $160,000 annually on average.

IT Salaries in Beijing 

Home to major tech companies like Baidu, Tencent, and Huawei, the tech scene in Beijing is driven by the Chinese government’s investment as well as research and development centers like the Chinese Academy of Sciences.

Salaries in IT here range from 17,500 CNY to 55,000 CNY monthly. The average salary for an AI/machine learning analyst is 34,100 CNY, a Blockchain developer is 29,200 CNY, an Information Security Engineer is 30,100 CNY, and an SAP Consultant is 33,000 CNY. 

IT Salaries in Berlin

Probably one of the largest tech hubs in Germany, Berlin is one of the leading cities in digital transformation in Europe. The average salary for an IT Support is €44,900 per year. Similarly, the average annual salary for a software engineer is approximately $80,000 to $113,192; for a data scientist it is €43,000 – €76,000; and for an Information Security Engineer, it is $75,000.

IT Salaries in Bangalore

Touted as the Silicon Valley of India, the tech city of Bangalore has a new startup that is mushrooming almost every day. It is a hub for public sector industries like aerospace and telecommunications. In fact, global titans such as Amazon, Uber, Cognizant, Texas Instruments, Wipro, Microsoft, SAP LABS, and more have their headquarters here. 

The average salary for IT roles in Bangalore is approximately ₹5,60,000 annually. Specifically, the average annual salary for an IT specialist is around ₹12,95,000, an Automation Engineer is ₹ 1,250,000, and an IT engineer is approximately INR ₹8,75,000. Entry-level roles start at ₹ 500,000 per year, while the most experienced ones could make up to ₹ 2,500,000 per year.

Microsoft Office Banglore

IT Salaries in Singapore

Over the years, Singapore has become a sought-after destination for tech innovation. Multinational companies find Singapore attractive for their operations, thanks to the excellent government initiatives and access to regional business opportunities. Moreover, the country has a highly skilled workforce with a diverse tech ecosystem. 

The average IT salary here is approximately S$60,000 per year. Entry-level positions start at S$42,000, while those who are significantly experienced can expect to make up to S$92,700 per year on average. The annual average salary for a Project Manager is S$75,000, a technology manager is S$78,000, and a network engineer is S$66,000. 

IT Salaries in New York

New York is another well-known hub in the tech ecosystem. The average IT salary here is $93,512 annually, ranging between $82,073 and $127,500. A well-experienced individual can even make as high as $160,000 per year. An IT Technician can expect to make $63,259 per year, an Information Technology Specialist around $85,498, and an IT Applications Manager about $125,855 per year on average. 

IT Salaries in Tokyo

Japan is constantly adapting to the challenges posed by digital transformation. In fact, Tokyo is ranked #10 in the Global Startup Ecosystem. Some of the best IT companies, such as Sony, Toshiba, Fujitsu, Hitachi, and more, offer exciting IT careers for professionals. 

Some of the highest-paying job roles here include IT manager, security manager, and business analyst. The average salary for Information Technology is JP¥1,08,50,000 per year in Tokyo. For an IT Engineer, the average annual salary is approximately ¥4,800,000. Similarly, the average for an IT specialist is JP¥ 52.5L per year. 

IT Salaries in LA

Los Angeles is another exciting destination for IT professionals. The average salary here is $134,977 per annum. An IT technician can expect $60,537, an IT Specialist is $72,172, a Systems Engineer is $134,997, and a Network Engineer is $125,043 on average annually.

IT Salaries in London

Finally, there is London. The average salary here is around £37,500 per year, ranging between £27,000 and £57,500. An IT Engineer can expect £37,415, an Automation engineer £51,605, an Automation Architect £70,701, and a Systems Engineer £60,239 per year on average. 

Conclusion

Dubai is home to many more IT companies, such as HCL Technologies, Cognizant, KNZ Solutions, Mind Tree Info Tech, and more. The UAE government’s initiative to boost the tech space supports the companies and more. 

Besides the golden opportunity for growth, the salaries offered are attractive and very well compared to wages in other major tech hubs. In the coming years, one can expect the average salaries to increase, given the boom and influx of investments. It is important to note that the salaries mentioned here are averages of the highest and the lowest paying roles. The exact salary could be much higher or lower based on your experience and specialty. 

HRSG offers tech-enabled solutions that are built to deploy the right resources at the right time for you. Our People solutions cater to recruitment, executive search, and organizational development, while our Business Solution addresses Integrated Facilities Management services. On the financial front, we offer accounting and bookkeeping, corporate tax, audit and compliance, and other related solutions. 

Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, is happy with you. 

KSA Labor Laws 2025

KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers
KSA Labor Laws 2025: A Comprehensive Guide for Employees and Employers 800 500 HRSG

The labor laws in the Kingdom of Saudi Arabia, KSA otherwise, are a set of rules and regulations that govern the labor practices in the kingdom. Initially issued by the Royal Decree in September 2005, these labor laws have undergone significant amendments, the most recent being 2024. 

The recent amendments to the labor laws aim to create an attractive work environment and achieve Saudi’s Vision 2030. This blog explores the KSA labor laws to help prepare employers and employees for the year 2025. It will answer important topics around women’s employment, key changes to the laws, labor regulations, vision 2030, and more. Let’s start. 

Vision 2030: What You Need to Know

Vision 2030 is Saudi Arabia’s effort to diversify the economy, develop its public sectors, as well as enhance the overall quality of life for Saudi citizens. The Vision Realization Programs are the driving force behind Vision 2030. Each program has a distinct way forward and an approved delivery plan that meets pre-defined objectives and key performance indicators. Some of the programs included are:

  • Fiscal Sustainability Program
  • Public Investment Fund Program
  • Financial Sector Development Program
  • Human Capability Development Program
  • National Industrial Development and Logistics Program

Some of the goals, as shared by the key leaders, are:

  • Harness the strong investment capabilities to stimulate the economy and diversify it.
  • Leveraging the strategic location and transforming it into a global hub connecting Asia, Europe, and Africa. 
  • Better partnership opportunities with the private sector

Labor Laws: Key Changes & What You Should Remember

The new amendments are said to affect 38 articles of the Labor Law, with 7 articles being deleted and 2 new articles being added. The following is a detailed breakdown of the changes and what you should be aware of in 2025.

Employment Laws: The Basics 

Age (for Employers)

KSA has a minimum age requirement for employment. For males, it is 21 years old, and for females, it is 22 years old. Moreover, anyone who is 15 or older but younger than 18 years of age is considered a ‘minor’ and cannot be employed in hazardous roles or any job that endangers their health, safety, or morals. That being said, any individual younger than 15 years cannot work or enter a place of work. These laws apply to every employee, no matter their nationality. 

Health & Dress Code (for Employees)

All employees must submit a certificate of fitness by undergoing a medical assessment at an accredited medical center to prove their fitness for the role. As for dress codes, females have a dress code that is suggested to follow in the workplace. The dress code is as follows: 

  • Top: Full-sleeved clothing with a high neckline and loose-fitting 
  • Bottom: Full-length and loose skirts or bottoms

Time Management Laws

The time management laws in the KSA regulate working hours, over hours, rest periods, etc. Here’s a breakdown of the hours. 

  • Working hours: 8 hours a day and 48 hours a week. During Ramadan, the hours are reduced to 6 per day and 36 per week. 
  • Rest periods: Employees are entitled to a minimum of 30 minutes of break for rest, meals, or prayers after 5 consecutive hours of work.
  • Overtime: Overtime hours will be entitled to overtime pay at 1.5 times their regular hourly wage. Alternatively, the employer and employees can agree to a paid compensatory time off instead of overtime pay.
  • Weekly rest: All employees are entitled to one day of full rest. Officially, Friday is a weekly off in Saudi Arabia. However, businesses can change this. 
  • Public holidays: All employees are entitled to paid leaves for the 5 officially recognized public holidays. 
  • Annual leaves and holidays: After 1-5 years of service, the employees are entitled to 21 days of paid annual leave. This increases to 30 days after 5 years of service. 
  • Sick leaves: Employees can take up to 30 days of paid sick leave with medical certificates. The next 60 days may go from one-third to the third quarter.
  • Maternity Leave: Maternity leave for all female employees has been increased from 10 weeks to 14 weeks now.
  • Paid Bereavement Leave: 3 days of paid leave in the event of the death of a spouse or a relative.
  • Hajj leave: Muslim employees can take 10-15 days of paid leave to perform the Hajj pilgrimage after completing 2 years.

Ministry of Human Resources and Social Development KSA

Saudization

The 2024 amendments have introduced several key measures and reinforced the policy of Saudization. In simple words, Saudization, or Nitaqat in local terms, requires businesses to hire Saudi Arabians. Each business has a hiring quota to fulfill, which depends on the following: 

  • Classification of the business 
  • Size of the business 
  • Percentage of current Saudi Arabians in the workforce

Here’s what the current quota looks like:

  • Businesses with 5 or fewer employees must have 1 Saudi employee
  • International companies must have a Saudi national holding a role next to a general manager
  • Businesses with more than 100 employees need to have 30% Saudization

Probation Period

If the worker is subjected to a probation period, it must be clearly stated in the work contract, and the duration shall not exceed 180 days. Originally, the probation period was 90 days at maximum, and employers had to have a written agreement to extend this period. 

Termination

The employment contract can be terminated under the following circumstances: 

  • Upon expiry of the contract, unless the contract has been explicitly renewed in accordance with the laws. 
  • Mutual agreement, given that the worker’s consent is in writing. 
  • The notice period of termination for the fixed contract is a 30-day notice period if the termination is from the employee’s side and a 60-day notice period if from the employer’s side.
  • In the case of an indefinite contract, termination can occur due to discrimination by either party. The employer must give a 30-day notice period, while the employee must give a 15-day notice period. 
  • A new provision for termination on account of bankruptcy has been introduced. The employment contract will be terminated upon the issuance of a final court order in bankruptcy proceedings. 

Renewal of Employer’s Work Permit

Previously, the Ministry had the right to decline the request to renew an employer’s work permit if they violated the Saudization requirements set by the Ministry. 

Under the new amendment, which is an addition to Article 35, the Ministry can decline the request if the employer violates conditions mentioned in the Regulations, not just the Saudization requirements. Following this amendment, the Regulations will regulate the non-renewal procedures. It ensures that the worker is not affected by the non-renewal of the work permit, including the possibility of transferring the worker’s services to another employer without the consent of the non-compliant employer. 

Regulations for Non-Saudis/Expatriate Workers

Although the contract of the non-Saudi was to be written in a fixed term, if the term of employment was not specified, the duration of the contract was considered equal to the duration of the work permit. 

Post the amendment, if the duration of the contract is not specific, it is considered to be 1 year from the date on which the worker actually assumes their duties. If the worker’s work continues after the term, the contract is considered to be renewed automatically for a similar term of 1 year. 

Furthermore, employers cannot employ non-Saudis for a role other than the role specified in the work permit. Even foreigners cannot change their profession without necessary legal measures.

Training and Development 

Before the amendment, the employer was required to ‘prepare’ his Saudi employees and enhance their technical, vocational, and other skills to replace the non-Saudi workers gradually. Moreover, the employer was required to keep a list of Saudi workers who had replaced non-Saudi workers. 

Under the new law, ‘prepare’ has been replaced by ‘develop a policy to train and qualify,’ which implies a more structured approach. Furthermore, the amendment removes the requirement of a list. It just states that the Regulations will determine the relevant provisions in this regard.

End-of-Service Payment 

The end-of-service payment for the first five years shall be half of a month’s salary for each year of service. For every subsequent year after five years, it shall be one month’s salary for every year. 

Conclusion

Having robust HR policies and a foolproof contract for all your employees can help you navigate the KSA Labor laws with ease and comfort. It will also protect you from violating any of the regulations mentioned in the Regulations or outlined by the Ministry and paying a penalty for the same.

If you need assistance in your HR operations or help with navigating the employee agreements, you can contact HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management. 

Gratuity Calculator UAE

Gratuity Calculator UAE: How It Works and Why You Need It?
Gratuity Calculator UAE: How It Works and Why You Need It? 800 500 HRSG

The UAE is globally known for creating policies that benefit employees and employers equally, striking a balance between the two. Moreover, these policies ensure that both parties receive their dues as deserved. One such policy is gratuity benefits. 

Gratuities are an essential component that all UAE employees need to understand. Gratuities, also called end-of-service benefits, guarantee that workers receive payment for their years of service and dedication. In this blog, we will break down what Gratuity is and why it’s important. We’ll also explore how the calculations work in the UAE. 

What Is Gratuity?

Gratuity is also known as end-of-service benefits. It is designed to reward employees for their tenure with an organization. In the UAE, labor laws govern these benefits. They depend on specific factors such as: 

  • Employment duration
  • The type of contract
  • Reason for termination

According to UAE labor law, gratuity entitlement begins after one year of continuous service. The calculation is based on the employee’s basic salary and years of service using a distinct formula.

Moreover, Gratuity may accompany other end-of-service benefits, including payments for unused annual leaves or pending salaries. Consequently, reviewing employment contracts and understanding legal entitlements helps employees receive the full range of financial benefits upon leaving a job smoothly and without disputes. Similarly, it helps employers stay compliant with the latest regulations and avoid legal trouble.

Gratuity rules are further clarified under Article 51 of the UAE Labor Law. The highlights include:

  • A pro-rata gratuity for fractions of a year after one year of continuous service.
  • Calculations are based solely on the basic salary, excluding allowances like housing or transportation.
  • Deduction of owed amounts from gratuity payments, if applicable.
  • Mandatory payment of all dues within 14 days of contract termination.

Significant Change to Gratuity Rules 

Post the revisions of the UAE labor law in 2022, the Ministry of Human Resources & Emiratisation (MOHRE) changed the way employers were hiring. Previously, expat workers or employees were employed in the UAE under two kinds of contracts: limited and unlimited contracts. Limited contracts had a predefined start and end date. In contrast, the unlimited contracts only had a start date with specific working terms and conditions. 

After the revisions, unlimited contracts are no longer valid. The MOHRE has eliminated this particular type of contract to reduce disputes between employers and employees. Furthermore, they want to ensure equal gratuity benefits to all foreign workers in the private sector. 

Rules for Gratuity based on Resignation and Termination

There are 6 different ways in which a work contract could end. Below is an overview of all of them, along with the expected gratuity outcome:

  • Resignation by the Employee

If the employee voluntarily resigns before completing a year of service, they are not eligible for gratuity benefits. The same applies in the case they resign without prior notice or completing their notice period. 

However, if they resign after a year of service, they are eligible for the benefits. 

      2. Termination by the Employer 

The employee is not eligible for the gratuity benefits if:

  • The employer terminated the contract a year ago. In this case, the employee is only entitled to compensation, that too if mentioned in the contract. 
  • The employer has terminated the contract with a valid reason and evidence for employees breaking contract terms. 

If the employer terminates the contract after a year but before the expiry WITHOUT valid reason, the employee is entitled to gratuity benefits and other end-of-service benefits.

      3. Termination With Mutual Consent

The gratuity benefits are only entitled if the employer and the employee mutually terminate the contract after one year of service. 

      4. Termination by Contract Expiry

If the limited contract expires and the employer does not want to renew it, the employee will receive all the benefits. However, suppose the employment contract expires in less than a year or it expires later but the employee hasn’t worked continuously for a year. In that case, they are not entitled to the gratuity benefits. 

     5. Termination by Court Order or Police Arrest  

In case a court order terminates the contract, the gratuity benefits are only applicable if they are mentioned in the order. Similarly, if the police arrest the employee and a case is filed, the employee is not entitled to Gratuity until the case is resolved. 

     6. Termination due to Redundancy or Restructure 

If the employer terminates the contract due to lack of work (redundancy), the employee is entitled to a gratuity if they have worked for a year or longer. In the case of restructuring, the employee will receive a Gratuity if they have worked for a year or longer.

In addition to Gratuity, the employee is also entitled to 1 to 3 months’ salary as compensation if it is mentioned in the contract.

Contract Termination

Why Is A Gratuity Calculator Important?

The gratuity calculator simplifies complex calculations. It also ensures compliance with UAE labor laws. Here’s why it’s beneficial:

  • With its intuitive design, the Gratuity Calculator is accessible to both employees and employers. This makes it easy to calculate gratuity.
  • The Ministry of Human Resources & Emiratisation mandates using the official formula mandated. The calculator ensures precise results. This instills confidence in users.
  • The calculator clearly illustrates years of service and basic salary impact gratuity. So, individuals get empowered to make informed financial decisions.
  • Understanding Gratuity shows that employers value their workforce’s contributions. Also, employees gain the assurance that their efforts are recognized and rewarded fairly.

How Do You Calculate Gratuity?

Gratuity calculation in the UAE depends on the employee’s basic salary and length of service. The following example outlines the process:

Basic Salary Example: AED 10,000

Step 1: Identify Daily Wage

To begin, divide the monthly salary by 30 to calculate the daily wage:

AED 10,000 ÷ 30 = AED 333.30 (Daily wage)

Step 2: Multiply Daily Wage by 21

Next, multiply the daily wage by 21 (the number of days used for gratuity calculation in the first year):

AED 333.30 × 21 = AED 6,999.30 (21 days’ wage)

Step 3: Apply Service Duration Rules

For employees with different lengths of service, the gratuity calculation changes:

  • For 1-3 years: The employee is entitled to 1/3 of AED 6,999.30 for each year of service.
  • For 3-5 years: The employee is entitled to 2/3 of AED 6,999.30 for each year of service.
  • For 5+ years: The employee is entitled to the full AED 6,999.30 for each year of service.
  • For employees completing over five years, Gratuity increases to 30 days’ wage for each additional year. Employers may also deduct any amounts owed by the employee, such as for unpaid leave or damages, from the gratuity payment.

Note that this method ensures precision. But quick tools like the Gratuity Calculator automate these steps to simplify the process. 

Factors to Keep in Mind While Calculating Gratuity

Several factors affect how Gratuity is calculated. This includes minimum service requirement, service term, basic salary, absence without pay, type of contract, and reason for termination. Understanding these factors helps in accurate calculations. It also helps employees negotiate fair settlements during end-of-service transitions.

The following is a brief overview of these factors: 

  • Employees must complete at least one year of continuous service to qualify for Gratuity. If an employee leaves before completing one year, they are not entitled to Gratuity.
  • Employees who have worked between 1 and 5 years are entitled to 21 days’ salary for each year of work.
  • Employees who have worked for more than 5 years are entitled to 30 days’ salary for each additional year beyond the first five.
  • Gratuity calculations are based solely on the basic salary. This excludes any allowances or benefits such as housing, transportation, or bonuses.
  • Any days of absence without pay are excluded from the total service period used in the calculation. This means that employees cannot count unpaid leave days toward their total service for gratuity purposes.
  • If an employee resigns or is terminated for misconduct, gratuity payments may be affected. But if the termination is not due to misconduct, the employee is typically entitled to full Gratuity.

Conclusion

Gratuity is more than just a financial benefit. It reflects an employer’s appreciation for an employee’s service and dedication. Understanding how Gratuity works under UAE labor law empowers employees to plan for their financial future. It also ensures that employers uphold their obligations transparently.

Tools like the Gratuity Calculator make calculations simple and precise. They ensure compliance. If you’re an employee preparing for a transition, it’s helpful. If you’re an employer, it provides clarity. So, staying informed about gratuity regulations is a key element. It also ensures financial security at work and lowers the risk of disputes. Thus encouraging a healthy, transparent relationship between employers and employees.

If you need assistance in your HR operations or help with navigating the employee agreements, you can rely on HRSG. Our cloud-based HRMS platform (Octofy) offers a comprehensive suite of services to streamline and enhance business operations. From AI-powered HR and payroll solutions to tailored talent consulting and rewards strategies, Octofy optimizes workforce and financial management.

Enter your
text here
Image Enquiry