UAE salary guide 2022: how much should you be earning in Dubai and Abu Dhabi? (2024)

FAQs

What is the basic salary in Dubai 2022? ›

A person working in Dubai typically earns around 21,500 AED per month. Salaries range from 4,810 AED (lowest average) to 99,000 AED (highest average, actual maximum salary is higher). This is the average monthly salary including housing, transport, and other benefits.

For the first five years, he will be entitled to 21 working days of basic salary, which is AED 2,570.4 (AED 122.4 multiplied by 21). Also, for the next five years, he will be entitled to 30 working days of basic salary, which is AED 3,672 (AED 122.4 multiplied by 30).

2. Average Salary Range. Dubai has a good average salary range, extending from a monthly salary of 4,810 AED (1,309.56 USD) to 99,000 AED (26,953.44 USD) per month. The average salary range only considers salaries that fall between the average minimum salary and the average maximum salary in Dubai.

For UAE nationals, the minimum wage is determined by the level of education: No high school certificate- 3,000 AED. High school certificate- 4,000 AED. College degree or higher- 5,000 AED.

A person working in Abu Dhabi typically earns around 21,000 AED per month. Salaries range from 4,680 AED (lowest average) to 96,400 AED (highest average, actual maximum salary is higher). This is the average monthly salary including housing, transport, and other benefits.

Dubai is much bigger and has more entertainment options, nightlife, family activities, luxury hotels, and plenty of budget options. In contrast, Abu Dhabi is slightly more expensive. Despite being more expensive, Abu Dhabi is a more peaceful location. And Abu Dhabi has better beaches than Dubai.

Expats in the UAE earn nearly AED570,000 ($155,180) on average, the sixth highest in the world, according to the latest edition of HSBC's Expat Explorer study.

Federal Decree – Law No. 33 of 2021 on the regulation of labour relations in the private sector came into force on 2 February 2022. The law is designed to enhance employment rights and boost the competitiveness of the UAE as a place to live and work, helping the region to attract and retain world class talent.

How is salary calculated in UAE? ›

Gross Salary/30= per day salary. Per day Salary/8=per hour salary. Overtime= Number of overtime hours X Per hour salary X 1.5 in addition to one day compensatory off.

There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.

The highest paid Abu Dhabi are Executive Management & Change professionals at $155,000 annually. The lowest paid Abu Dhabi are Support Functions & Translation professionals at $18,000.

Renting a House or Apartment

The average rent in the UAE ranges between 30,000 to 50,000 AED (8,100 to 13,600 USD) per year for a studio apartment. One-and two-bedroom apartments range between 70,000 and 100,000 AED (19,000–27,220 USD).

'Employers' market'

The oil-rich UAE is home to millions of expatriate workers of all levels and nationalities, lured by tax-free salaries and year-round sunshine.

Top UAE Salaries - By Employer

The best paying company in UAE is TAQA, offering an average salary of $298,000.

What is a good expat salary in UAE? ›

According to the latest HSBC Expat Explorer survey released on Monday, average salary for expats in Dubai is $138,177 (Dh507,110) per annum, ranking the emirate at No. 11 among top 30 global cities.

Cost of living in Abu Dhabi (United Arab Emirates) is 11% cheaper than in Dubai (United Arab Emirates)

As per rules, its not possible. Especially if you are in to government job. But there are many people, staying in Dubai and working in Abu Dhabi.

Similarly, a couple renting a 1-bedroom apartment in Dubai can expect annual rental costs between AED 34k to AED 81k on average, while a similar property in Abu Dhabi would cost between AED 40k to AED 86k, depending on the area.

Moving to Abu Dhabi gives you the chance to fully appreciate this emirate's diversity. Due to its combination of modernity and tradition, you get the chance to learn about its culture and to enjoy great leisure activities during your free time. Expats will also experience an emirate proud of its time-honored customs.

Cost of living in Abu Dhabi is high, the city is ranked 40th out of 209 in cities Mercer's Cost of Living Survey for 2018 and it's the second most expensive place to live in the Middle East along with Dubai.

Article 17 of the Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector, the 'UAE Labour Law'- (PDF, 2.63 MB) identifies the normal working hours for the private sector as 8 hours per day, or 48 hours per week.

If you are resigning before completing one year of service, you are not entitled to gratuity. This also applies to those who have sent in their resignation after six months in the UAE. However, if you have completed more than one year you are eligible for certain end-of-service benefits.

As per the law, you can stay up to 30 days post the cancellation of your employment visa. After this period, if you continue to overstay you attract a fine of AED 100 for the first day and AED 25 for each day thereafter till you exit or amend your visa status.

How are salaries calculated in Dubai? ›

The general formulas to calculate overtime rate for normal days is (Salary/30 days/8 hours) * 1.25 and for weekend (Salary/30 days/8 hours)*1.5. You should further multiple number of OT hours to the respective formula to get OT Amount for normal days and Fridays to add in to Gross Salary for each employee.

A monthly salary is calculated on the basis of a 30-day month. In a 31-day month a worker will not get an extra day's pay. This becomes even more obvious when a worker reports back from leave on the 30th day in a 31-day month. The Labour Law considers a month is 30 days.

Dubai employers do not give 13th- month cheques or annual increases as is the case in countries where minimum wage laws exist.

To start with, if a full-time employee has worked for a year in your company, he's/she's eligible for 30 days paid annual leave. However, if the full-time employee has only worked for six months, he or she is entitled to only 2 days leave per month until they have worked for a year.

Ideally, they use a reversed calculation method where a percentage of the salary and CTC is taken. The basic pay is usually 40% of gross income or 50% of an individual's CTC. Basic salary = Gross pay- total allowances (medical insurance, HRA, DA, conveyance, etc.)

For example, most companies use the correct overtime calculation formula in the UAE, which is “per day salary = basic salary/30 days”. Another correct formula that compliant companies use is “per hour salary = basic salary/30 days/8 hours”.

Meanwhile, 43 per cent of businesses in the UAE plan to increase salaries in 2022 by an average of 3 per cent as the job market and economy improve on the back of Expo 2020 Dubai and the government's positive handling of the Covid-19 pandemic, according to a December report by recruitment agency Cooper Fitch.

A person working as a Labourer in United Arab Emirates typically earns around 4,290 AED per month. Salaries range from 2,190 AED (lowest) to 6,610 AED (highest). This is the average monthly salary including housing, transport, and other benefits.

Will salary increase in 2022 in UAE? ›

A recent survey by Hays Middle East showed that 73% of employers in the UAE expect their companies to increase salaries by 5%- up from 37% in 2021, The National reports.

Yet a survey of U.S. companies found employers now are budgeting an overall average salary increase of 3.4% in 2022, which is less than half the current inflation rate (though notably it represents a substantial rise from the average 2021 salary increase of 2.8% - a 21% difference).

The average increase in pay was between 5 per cent and 10 per cent, according to the Hays salary guide. Among Emiratis who expect a pay rise this year, the majority expect an increase of 5 per cent to 10 per cent.

A person working in Abu Dhabi typically earns around 21,000 AED per month. Salaries range from 4,680 AED (lowest average) to 96,400 AED (highest average, actual maximum salary is higher). This is the average monthly salary including housing, transport, and other benefits.

There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.

Salary Recap

The average pay for a Factory Worker is AED 83,183 a year and AED 40 an hour in United Arab Emirates. The average salary range for a Factory Worker is between AED 63,136 and AED 96,826. On average, a Less Than HS Degree is the highest level of education for a Factory Worker.

Gross Salary/30= per day salary. Per day Salary/8=per hour salary. Overtime= Number of overtime hours X Per hour salary X 1.5 in addition to one day compensatory off.

What is average Dubai rent? ›