Employer of Record in the UAE

How hiring through an employer of record works in the UAE

A local employer signs the contract, obtains the work permit and residence visa, and runs payroll. The mainland falls under Federal Decree-Law No. 33 of 2021 and the Ministry of Human Resources and Emiratisation; the ADGM says that law and the Wage Protection System do not apply inside it, and the DIFC has its own Employment Law. In both free zones the employer bears visa costs and issues a written English contract. Your quote confirms mainland steps, hours and leave.

Employer costs and contributions in the UAE

The Federal Tax Authority's natural-person guide treats wages, in cash or in kind, as outside Corporate Tax, and its FAQ says the UAE is not currently considering personal income taxes. The Ministry of Foreign Affairs says employers provide health insurance at their own cost.

In the DIFC, every non-exempt employee, from 1 February 2020 or their later start date, joins a qualifying savings scheme such as the DEWS, funded at no less than 5.83% of monthly basic wage for five years and 8.33% afterwards. Unemployment insurance (ILOE) is mandatory for private-sector and federal government employees according to the scheme's FAQ, at AED 5 a month plus VAT up to AED 16,000 basic salary and AED 10 above, while ADGM guidance says it is not mandatory there. UAE nationals are registered with the relevant UAE pension authority, at rates confirmed in your quote.

Working time, leave and pay rules in the UAE

• Hours: both free zones cap work at 48 hours a week without written consent and shorten Ramadan hours for Muslim employees.
• Leave: both give 20 working days of paid vacation and paid public holidays, 65 working days of maternity leave (33 at full pay, 32 at half, after 12 months of service) and five working days of paternity leave.

Probation, notice and end-of-service pay in the UAE

Both free-zone laws cap probation at six months. Probation notice is one week in the ADGM and left to the contract in the DIFC. After probation, DIFC minimum notice is 7 days under three months of service, 30 days up to five years and 90 days beyond, while the ADGM sets 7 days, then 30 from three months.

ADGM gratuity, due after one year of service, is 21 days of basic wage per year for five years and 30 days per later year, unless a qualifying pension or savings scheme applies instead, and UAE and GCC nationals in a pension scheme receive none. The ADGM also requires a repatriation flight within 30 days of termination, with exceptions such as dismissal for cause. Toku's compliance guide gives the same gratuity formula for the mainland.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in the UAE

Short answer: No, for mainland employees. The Central Bank's Payment Token Services Regulation lets a foreign-currency stablecoin be used as payment only to buy virtual assets and bars licensed providers from other foreign-token transfers, and mainland wages run through the Wage Protection System. In the DIFC and ADGM that regulation does not apply and it is not settled.

What the law says about the form of pay

Toku's guides describe mainland base salary as dirham pay through the Central Bank's Wage Protection System; confirm the current federal law with the ministry. The ADGM says that system does not apply and leaves the payment method to employer and employee, and the DIFC law sets no currency. Separately, the Central Bank's Payment Token Services Regulation (C 2/2024, in force since 31 August 2024) lets a licensed dirham payment token serve any lawful purpose but allows a foreign-currency token only as payment for virtual assets. It bans algorithmic stablecoins and privacy tokens, and its Article 2 does not cover the DIFC and ADGM.

What it means for employee salary

The regulation names no wage use, so a USDC or USDT salary has no basis in it, and licensed providers may not facilitate other foreign-token transfers. The Central Bank's exchange-house rules let Wage Protection System wages go only to a bank account or payroll card, so plan base salary as dirhams by bank transfer. In the DIFC and ADGM Article 2 does not apply by its terms, but neither employment law mentions token wages, so confirm with the authority first.

Contractors

Article 2(7) bars a person in the UAE selling goods or services from accepting any virtual asset as payment other than a licensed dirham payment token, or a registered foreign token used to buy virtual assets, so a UAE-based contractor may not take USDC or USDT for services. It speaks only of persons in the UAE, and Article 2 does not apply by its terms in the DIFC and ADGM.

Tax on crypto and tokens

The Federal Tax Authority's 2023 guide puts wages outside Corporate Tax and excludes personal investment income only when it is not a commercial business, a category that includes virtual asset works and speculation for profit. It does not say how a token received as pay, or later sold by an employee, is treated. For VAT, clarification VATP040 exempts virtual-asset transfers and conversions from 1 January 2018 and says crypto currencies are not treated as money.

How Toku handles it

Official rules in the UAE restrict or prohibit using or offering crypto and stablecoins as a means of payment, so this page does not offer stablecoin payroll, USDC or USDT payouts or token grants for the UAE. Toku confirms what, if anything, applies to a specific hire before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in the UAE

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Toku checks the role, work location and which employer registration applies, mainland, DIFC or ADGM, before a start date is set. Gather identification and, for UAE nationals, pension details. Your quote confirms the onboarding timeline for the UAE.

What an employer of record costs in the UAE

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in the UAE is confirmed before an offer. See the published pricing.

More on hiring in the UAE

• Payroll and hiring in UAE
• UAE full-time hiring compliance guide
• Employer of Record in the UAE: full guide
• Employer of record coverage in 100+ countries