UAE and various Gulf countries like Dubai are the most popular locations for professionals. The economy of UAE is also referred to as a business booming economy. But before looking for a job, often job seekers come up with an important question. What are the minimum wages in Dubai? To comply with the existing laws it is necessary to know about the minimum wages in Dubai.
When it comes to employment, the basic question of the employees is related to the wages provided to employees as well as the cost of living. The salaries or payout of employees is directly related to the knowledge and experience of employees. The jobs which require expertise and knowledge are highly paid whereas jobs which require fewer skills pay lesser.
According to the new UAE Labor Law, the basic salary in Dubai as well as other benefits must be mentioned in the employment contract. The gross salary of an employee includes basic salary and all the allowances paid.
To sum up the details, there is no minimum salary or wages in Dubai but there are three types of salary:
- Basic salary in Dubai: the basic pay provided to employees
- Gross salary = Basic compensation+ Allowances
- Net salary paid to employees – Gross Salary – Deductions
Is Minimum Wages in Dubai Mandatory?
This is one of the most important and concerning questions of the people who are looking for a job in the UAE. It is also important for employers to know whether there is any minimum wage to comply with.
However, there is no minimum wage in Dubai. It means there is no minimum amount that an employer has to provide to their employees. But there is a concept of the average salary in Dubai.
Many people believe that there are some minimum wage for Dubai but for the record there are no minimum wages defined by law.Â
What is the Average Salary in Dubai?
According to a famous resource, the famous salary in Dubai is 2,58,000 AED per year.Â
To get a clear picture of the salary in Dubai we will discuss the median salary and average salary in Dubai.
1. Median Salary
The median salary of an employee in Dubai and other gulf countries is 19,000 AED per month. This means that nearly half of the population in Dubai earns less than 19000 AED per month while the other half earns more than 19,000 AED per month.Â
Now the question that arises is, how to calculate median salary?
Let’s understand this with a simple example. Suppose there are three employees. An employee X is earning 20,000 AED while Y is earning 25,000 AED per month while Z is earning a salary of 15,000 so the median salary will be 20000 AED. The total salary of the three employees is divided by the total number of employees.
Median Salary = Total salary of all the employees/ Number of employees
2. Average salary range
Average Annual Salary Increment in Dubai
The salary increment is the basic concept for all countries. Dubai is no different in this context.Â
According to a famous agency UAE has an average salary increment of 8% every 17 months. The world average rate is 3% every 16 months. It means the salary increment rate in Dubai is far better than in most countries.
1. Industry-wise salary increment rate
Here is the industry-wise breakdown of the salary in Dubai. This data contains estimated figures and it may change with trends.
| Industry | Average Annual Increment Rate |
| Healthcare | 8% |
| IT Sector | 6% |
| Education | 5% |
| Energy | 4% |
| Construction | 3% |
2. Experience level increment
Annual increment is also based on the experience level of an employee. Like every other country, Dubai also provides more increments to experienced employees to enhance their retention rates.
| Work Experience Level | Average Annual Increment Rate |
| Junior Level | 3-5% |
| Mid-level | 6-9% |
| Senior Level | 10-15% |
| Top-Management | 15-20% |
Minimum Wages for Certain Categories of Employees in the UAE
Although, there are no minimum wages set for employees in Dubai but back in 2013, the Labor Ministry of UAE approved minimum wages for certain categories of employees. These salaries do not apply to all the categories of employees in Dubai and aren’t the same as minimum wages.
Employee-wise minimum base salary in Dubai are as follows:
| Employee categories | Minimum Base Salaries |
| University Graduates | 12000 AED |
| Skilled Technicians | 7000 AED |
| Skilled labourers | 5000 AED |
Salary comparison in Dubai
The salary factor of an employee is dependent on various factors such as profession, work experience and location.
Let’s make an easy comparison of salary on various parameters:
1. Salary comparison by profession
In Dubai and other Gulf countries, salaries may vary based on the profession of an employee such as finance, medicine, manufacturing etc. However, within the profession salary may depend on the job position and job role of an employee.
Let’s look at how salaries vary based on the profession:
| Profession | Average salary (monthly) |
| Chef | 44000 AED |
| Project manager | 20000 AED |
| Operations Manager | 15000 AED |
| Software Engineer | 11000 AED |
| Teaching jobs | 10400 AED |
| Tax Consultant | 9500 AED |
| Legal assistant | 5500 AED |
| Domestic worker | 1600 AED |
The above-mentioned data is taken from glassdoor.com
2. Average salary comparison by location
UAE is part of the Gulf countries, which consists of six countries other than the UAE from the Middle East. The GDP of Dubai is second to Saudi Arabia which makes it even more competent.
Let’s make a quick comparison between the salary in Dubai and other GCC (gulf countries). Â
| City | Average salary (monthly) |
| Abu Dhabi | 21000 AED |
| Sharjah | 20400 AED |
| AL Ain | 19800 AED |
| Ajuman | 19300 AED |
| Fujairah | 18100 AED |
3. Salary comparison by education
A higher education level leads to a higher salary package for employees.Â
Let’s have a glimpse of how the level of education determines the salary package in GCC countries.
- Those employees with a diploma degree earn 17% more than high school employees.
- Employees having a Bachelor’s degree earn 24% more than employees who have a diploma degree.
- Employees with Master’s degrees earn 29% more than employees having Bachelor’s degrees.
- A PhD degree holder employee earns 23% more than an employee with a Masters degree.
4. Salary comparison by experience level
Experience level is also a major factor that affects the income level in any country.Â
Here’s an overview of salary comparison by the experience level of a candidate:
| Years of Experience | Rate of increase in average salary |
| 2-5 years | 32% more than a fresher employee |
| 5-10 years | 36% more than the employee having experience of less than 5 Years |
| 10-15 years | 21% more than professionals having less than 10 year experience |
| 15-20 years | 14% more than professionals having less than 15 year experience |
| 20+ years | 9% more than professionals having experience of 15-20 years |
Employee Benefits in Dubai
UAE has certain mandatory benefits that employers should provide to their employees.
Some of these employee benefits provided in Dubai are:
- Paid Leaves- In the first year 21 days of annual leaves are provided to employees and after one year 30 days leaves are provided in subsequent years.
- Travel Expenses-Â It is necessary for employers to provide return ticket to employees when their employment contract is completed.
- Medical Insurance- Provide medical insurance after their probation period is completed.
- Gratuity-Â It is necessary for employers to provide gratuity amount to employees after they completed a certain period with organization.
Calculate taxes and stay compliant!
Frequently Asked Questions (FAQs)
A salary ranging between 10000-15000 AED is considered as a decent salary in Dubai and a person can also save a good amount after his expenses.
The salary of 5000 AED is pretty good for an employee who just start his career. This amount will cover living, food and other basic expenses.Â
Yes, a salary of 40000 AED is a decent amount for an employee in Dubai.
Yes 30k is quite good salary in Dubai as there is no income tax in Dubai.