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Payroll & Employees in UAE
Employer has to do following at the time of taking new employee at company’s payroll :
UAE’s Labour Law
Under the UAE’s Labour Law, employees can be hired on a probationary period, that cannot exceed 6 months. Contracts may not be terminated without notice during that time, but the employee is not entitled to End of Service Benefits. Employees who complete probation successfully, will have that period considered as part of their period of service.
The documents required to register are as follows-
End of service benefits in UAE
Under UAE labour Law when employment is terminated, leaving employees are entitled to certain benefits. These are known as End of Service Benefits, and entitle employees to the following:
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Social Security in UAE
In UAE, Employers have certain responsibilities as part of the payroll process. As UAE has no individual or corporate income tax (there are exceptions to certain oil and gas businesses, and some branches of foreign banks), withholding tax is not generally considered.
Employers are required to withhold pension contributions for workers in the UAE, although foreign workers do not contribute to, or receive pension funds. Local employees must contribute 5% of their wage or salary as pension social security, while their employers must contribute 12.5%.
Wages are required to be paid to employees in the UAE within two weeks of the end of the pay period. In UAE employees can be provided with online payslips and payroll reports must be kept for a minimum of 10 years.