Wednesday, September 23, 2015

Basic salary in uae labour law

Article of the Labour law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet. The amount is important, as it is the basis of calculation for your end-of-service gratuity pay. However, an employee with a monthly salary of less than Dhs.


Article stated: “Employee is entitled for days annually if his service exceeds one year. I would further advise that your termination on the basis of redundancy is arbitrary in terms of the labour law.

Overtime is calculated on the basis of Gross Salary. It is further noted that upon completion of two years of employment your employer renewed your labour contract and at the time of its renewal reduced your basic salary to Dh0(per cent ) and. A “basic wage” is the wage specified in the labor contract that the employer has agreed to pay to the employee exclusive of allowances such as accommodation, housing, transport, and travel. Over time is calculated on the basis of basic salary only. Normal working hours should not exceed 8hrs per day or hrs per week.


Additional hours worked will be considered as overtime. As per the Chapter III Section Article 5 employees who are engaged on yearly or monthly remuneration shall be paid at least once a month. All other employees shall receive their remuneration at least once in every two weeks.

The end of service gratuity is calculated on basis of last wage which the employee was entitled to, namely the basic salary. I was working in one of the biggest and renowned groups in the UAE for years and I have resigned (due to delays in salaries every month) on 01. Basic Salary (Known as Base Salary in the USA) This number is measured in terms of how much per month, not annually like they do in the USA.


When I was looking around for jobs in Dubai, employers and recruiters used to ask me how much I made and I told them my usual response (which is in annual terms). Is this the right way, what does the labour law says, how to calulate e. Non- nationals may not engage in any work within the State except in accordance with the conditions stipulated in this Law and its executive orders. UAE LABOUR LAW FEDERAL LAW NO.


These above differences seem, not all companies follow the labour law in the UAE. You would find the vary on overtime pay between you and your counterpart who works in other company even though both of you have the same basic salary. UAE labour law has not specified any standardized minimum wage rate or pay. A ‘basic wage’ is the wage that is specified in the labour contract and it is exclusive of all the allowances for example: accommodation, conveyance etc. During employment , leave pay is calculated to be basic salary and housing allowance only although the market trend is to provide full remuneration for leave pay.


High school graduates must earn a minimum of Dh0per month and UAE nationals with a college certificate or more must earn a minimum of Dh0per month. Hi Sir, Please, can you help me understand the following below? I have been terminated from my company in Dubai.


They had made me sign one letter on their Official Letterhead that they have terminated me and will be giving a grace period of one month.

Q: Do I get month salary in case of termination? With the exception of non-arbitrary dismissals of employees under Article 1of the Labour Law, Article 1of the Labour Law requires that employees be given a minimum days’ notice of termination of their employment or the period stipulated in their contract of employment, whichever is higher. Female schools and university students are welcomed on the third day while male students are welcomed on the fourth day.


There are (4) Notifications for you as of today. Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law , and regulatory compliance for business organizations.


Employees who are not UAE nationals may be employed in the United Arab Emirates only after approval of the Labour Department and the obtainment of a work permit in accordance with the procedures decided by Ministry of Labour and Social Affairs. Work permits may only be granted if the following conditions are fulfilled. What is a Limited Contract?


It is the basic salary on which you gratuity is calculated. If you have to pay any amount of money to employer, the employer can charge that money from you gratuity at the time of calculation. Some companies pay full salary and will be calculated 2. As per labour rules of UAE the employer must pay 2. Please note that as per UAE labor laws pertaining to leave, the leave of the employee should not be carry forward more than two years.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Popular Posts