Unified UAE Legislation Database

UAE bonuses and benefits schemes

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://
Analytical articles from Real Law service

1. Employment Contract in the UAE

2. Penalties and financial liability of employees in the UAE

3. UAE bonuses and benefits schemes

4. Labor disputes in the UAE

5. Hiring process in the UAE

6. Payment of salary in the UAE

7. Types of leaves in the UAE

8. Dismissal process in the UAE

 

Review by Real Law

The benefits model in the labor field of the UAE differs from the western models. While local labor laws provide a certain legislative foundation, the specific terms related to bonuses, benefits and rewards for meeting key performance indicators (KPIs) are usually determined by individual employment contracts and internal company policies.

 

It is worth noting that in the UAE salaries are divided into the basic salary and bonus part.

 

According to Federal Decree-Law № 33 of 2021:

1. Basic Wage (salary): the wage stipulated in the employment contract, which is paid to the worker in consideration of his work under the employment contract, on a monthly, weekly, daily, hourly, or piecework basis, and which does not include any other allowances or benefits in-kind.

2. Wage (salary): the basic wage and the cash all...