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Know About the Minimum Wage and Living Cost in the UAE Below
Everyone knows that UAE has got a lot of earning potential. It is one of those countries where you will find tons of opportunities related to different fields. It does not matter whether you’ve got an engineering degree or a simple diploma, the wages in the UAE are good for both professions. This is why many people are interested to work in UAE because they know that minimum wage in UAE is still good to make their lifestyle better. However, these people must need to first showcase their skills to the employers, because the job market is still highly competitive in the UAE.
The federal laws of UAE have not designated any minimum wage for workers. They do not bind employers to precisely pay a minimum amount to the laborers under any condition. However, the Ministry of Human Resources and Emiratisation (MoHRE) have set some guidelines for the companies to understand the structure of minimum wage in UAE. This classification defines how much should be paid for the workers based on their degree and experience in the market.
If you are also interested to work in any software development company, and want to know what is the minimum wage in UAE, read this blog in detail. It will give you some insights related to the pay structure of the UAE, defining how much you can earn as a skilled worker in the gulf nation. Let’s first start from the basics understanding why having a good knowledge about minimum wages is important.
Why You Need to Know About the Minimum Wage in UAE?
If you are finding work opportunities in Dubai, you must need to first set a salary target in your mind. This is important because managing your living cost in the UAE requires you to earn a specific amount every month. It is quite a known fact that Dubai is one of those expensive cities in the world in terms of living. There are many things you need to manage with a good sum of money while living in this city. This requires you to have a good monthly income to overcome those expenses, otherwise you’ll struggle badly.
The living cost in Dubai is certainly very high, as bills of home rent, electricity and others often takes a huge toll. Navigating with these challenges is simply part of your job, hence you need to find work opportunities that can help you to manage these expenses. This information is important for all those who are coming to Dubai in the search of work. They should know about the minimum wage in UAE and the cost they’ll have to bear while living in the country.
What is the Minimum Wage in UAE?
The authorities in the UAE have not designated any federally mandated minimum wage, indicating that employers are not obligated by law to pay their workers a specific minimum amount on an hourly or monthly basis. Nevertheless, the UAE Ministry of Human Resources and Emiratisation (MoHRE) stipulates that salaries should meet the basic needs of employees.
To achieve this, the MoHRE has set minimum salary guidelines for certain employee categories. While these guidelines do not carry legal obligations, they function as a reference point for several recruitment agencies in Dubai, guiding them to provide fair compensation to their employees. Here is the official monthly wage guideline issued by the MoHRE in 2013.
- A minimum monthly salary of AED 12,000 ($3,267) is recommended for university graduates.
- Skilled technicians are advised to receive a minimum monthly salary of AED 7,000 ($1,905).
- Skilled laborers, provided they possess a secondary school certificate, are recommended to receive a minimum monthly salary of AED 5,000 ($1,361).
The above defined minimum salary guidelines are applicable to both UAE nationals and expatriates engaged in employment within the UAE. Employers are obligated to follow these guidelines, not only to uphold compliance with labor regulations but also to foster equitable labor practices within the country. It is crucial to recognize, however, that these guidelines function as a foundational benchmark.
While the guidelines set forth by the UAE Ministry of Human Resources and Emiratisation establish a baseline for fair compensation, they acknowledge the dynamic nature of the job market and the diverse qualifications of the workforce. Consequently, employers are encouraged to consider these factors when determining salaries, promoting an environment where employees are appropriately rewarded for their expertise and contributing to a more competitive and thriving labor landscape.
Minimum Wage and Health Insurance in the UAE
The healthcare system in the UAE is characterized by a combination of public and private components. Employers play a pivotal role in this system as they are mandated to furnish health insurance for their employees. The Ministry of Health regulates the basic level of care provided through this insurance, issuing a health care card to all employed residents. This card grants individuals access to complimentary healthcare services at public facilities.
Despite the availability of public healthcare, there exists a prevailing perception that the quality of services in private facilities in Dubai surpasses that of public institutions. Notably, private health insurance is gaining popularity as it is not accepted in public health facilities. The adoption of private health insurance is on the rise, with costs varying based on the provider and the extent of coverage desired. This trend reflects a growing preference for comprehensive and tailored healthcare options among residents in the UAE.
What’s the Average Wage in the UAE?
The average salary paid by different web development companies in UAE is influenced by several factors, including geographical location, professional field, and work experience. Disparities in average compensation exist among the country’s seven emirates, with major urban centers like Dubai and Abu Dhabi generally offering higher salaries. While the average salary serves as an indicator of the overall remuneration landscape in the UAE, a more detailed breakdown is needed to provide a comprehensive understanding of wage structures across different sectors and regions.
When examining the broader international context, the UAE stands out for offering relatively high wages and salaries compared to many other countries. This factor contributes to the nation’s attractiveness for both domestic and expatriate workers seeking competitive compensation packages. The acknowledgment of the UAE’s comparatively favorable remuneration practices underscores its position as a destination with economic opportunities and robust financial rewards for those talented individuals. Here is the breakdown of an average wage in the UAE by location and profession.
Average Salary by Location:
- Dubai: AED 28,000 ($7,623) per month
- Abu Dhabi: AED 22,000 ($5,989) per month
- Sharjah: AED 18,000 ($4,900) per month
Average Salary by Profession:
- Engineers: AED 35,000 ($9,529) per month
- Doctors: AED 40,000 ($10,888) per month
- Teachers: AED 20,000 ($5,445) per month
Frequently Asked Questions
| What is the difference between wage and salary? In general context, wages are typically paid on an hourly basis and vary depending on the number of hours worked. On the other hand, salaries are fixed, regular payments usually expressed on an annual basis regardless of hours worked. |
| What is the minimum wage in UAE? The authorities in the UAE have not defined any minimum wage amount. It depends on the experience and academic qualification. However, the MoHRE has set some basic guidelines to decide an average wage for the workers in the UAE. |
| What is the average living expense in the UAE? The average living expense in the UAE is relatively high as compared to others countries. On an average, it can cost you around $2000 to $4000 per month, depending on the family members you are bearing. |
Final Words
That brings us to the end of this blog in which we have discussed what is the minimum wage in UAE. This is an important question that is often asked by many individuals. Most of them are usually coming to the UAE for the first time, hence they do not know much about the pay structure being offered there. This blog has therefore tried to cover various points that can let them know what is the minimum wage in UAE.
The authorities in the UAE have not defined any minimum amount, however, some guidelines are given by them to the employers in this regard. We have discussed all of them in detail above, so that you can understand what type of wages are offered based on different classifications. These numbers can still vary due to the changing policies, but they’ll still give you a close idea about the minimum wages being offered in the UAE.
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