UAE employment visas for your staff
Hiring in the UAE makes your company a visa sponsor. That brings a quota, filings, payroll rules and, when someone leaves, a cancellation. Most of it runs to a calendar, and every step costs less when it is done correctly the first time.
A UAE employment visa costs about AED 5,500 per employee (our all-in estimate; fees vary by zone and emirate) and takes 2–3 weeks on standard processing. The permit is the smaller part of the cost of hiring. Sponsorship makes your company an employer under UAE labour law: salaries are paid through the Wage Protection System, end-of-service gratuity becomes payable once an employee completes a year of service, health cover is required before the visa is issued, and each visa renews on a 2-year cycle. Over time these obligations usually cost more than the visa fee.
- Budget about AED 5,500 and 2–3 weeks per employee from work permit to Emirates ID. Both are estimates; fees vary by zone and emirate.
- From the first hire you have two standing duties: WPS payroll through the Wage Protection System and end-of-service gratuity for each employee.
- Your licence tier or MOHRE classification sets how many visas you can sponsor, so decide on headcount when you set up the company.
- Each employment visa renews every 2 years. When someone leaves, the visa is cancelled and a final settlement is paid.
- Gratuity is 21 days' basic wage per year for the first five years and 30 days per year after that, capped at two years' wage. Provide for it monthly.
The hiring process, step by step
Free zone companies file through the zone, which sets a visa quota for each licence tier. Mainland companies file through the Ministry of Human Resources and Emiratisation (MOHRE), which classifies each role by skill level. For each employee the sequence is much the same on either route: an offer letter and an employment contract in the required form, an entry permit, a change of status if the person is already in the UAE, a medical fitness test, Emirates ID biometrics and, finally, the residence visa.
On standard processing this costs about AED 5,500 all-in and takes 2–3 weeks per person. The one firm prerequisite is order: nothing can be filed until the trade licence and establishment card are live, so hiring dates have to follow the setup timetable. We share that timetable at the start, so offer dates and permit dates line up.
If you have not yet chosen where to incorporate, include your hiring plans in that decision. Headcount and quota are easier to get right during zone selection than to change later. For the filings themselves, you can hand the paperwork to our PRO services team and keep your own time for the business.
WPS payroll and end-of-service gratuity
Two duties start with the first employee you sponsor. The first is the Wage Protection System (WPS). Salaries must be paid through an approved agent (a bank or exchange house) and reported to MOHRE on time, every month. Free zone employers should also check their zone’s own payroll rules. If a salary run is missed, MOHRE can stop new work permits until payroll is brought up to date, so WPS works as a monthly check on your ability to keep hiring.
The second is end-of-service gratuity, which an employee earns once they complete one year of service and which is paid when they leave. Under the UAE Labour Law it is calculated on basic wage rather than the total package, and the liability grows on the balance sheet whether or not you have provided for it. We add both to the accounting as monthly line items, so payroll and the gratuity provision are visible long before any settlement is due.
| Service length | Gratuity accrual (on basic wage) |
|---|---|
| Under 1 year | None before one year of continuous service |
| 1 to 5 years | 21 days' basic wage for each year of service |
| Beyond 5 years | 30 days' basic wage per year for the years above five (the first five stay at 21) |
| Overall cap | Total gratuity cannot exceed two years' wage |
Visa quota and hiring capacity
You cannot sponsor more visas than your quota allows, and the quota comes with your licence. In a free zone it depends on the licence tier and the office arrangement. Flexi‑desk and smart-office packages carry a small allocation: Meydan, for example, allows up to six visa allocations per licence, while the RAKEZ All-Inclusive package includes one visa with up to three more available. More capacity usually means moving to physical office space. On the mainland, MOHRE sets capacity according to the size and type of the establishment and the roles you file.
That is why headcount belongs in the incorporation decision. A company that expects to employ eight people should not start on a package capped at three and then pay to restructure. Our Free Zone Index lists the visa quota for each zone, so you can match your hiring plans to a licence before you commit. If the team will be larger than any flexi‑desk package allows, model office space or the mainland route from the start.
Health insurance and other costs per employee
A compliant hire carries a few standing costs beyond the visa fee. Health insurance is required for residence in every emirate: an employee’s visa cannot be issued or renewed without valid cover, and providing it is the employer’s responsibility, so it belongs in the cost per head. Employees must also hold cover under the federal unemployment insurance scheme (ILOE), which carries a small monthly premium.
None of these costs is large on its own, but together they make up the difference between the ~AED 5,500 permit and the annual cost of an employee. Our visa cost calculator turns the per-head estimate into a budget you can plan payroll around, with insurance included.
Employment visa renewals every two years
Each UAE employment visa renews on a two-year cycle, and each renewal repeats the medical test, the Emirates ID and the visa issue. For one employee that is a diary entry. For a team of ten it is a rolling schedule, and a missed date turns into an overstay, then a fine and, if it continues, a block on the company’s filings.
We keep a dated list for the team: each person’s work permit, Emirates ID and visa expiry, with lead time built in, so renewals are filed early. The same list feeds payroll and the gratuity provision, which is why we keep hiring, accounting and PRO work on one calendar.
Visa cancellation and final settlement
Cancellations need the same care as hiring. Ending an employment properly means cancelling the visa, paying the final settlement (including the accrued gratuity and any outstanding salary through WPS) and managing the grace period so the person can leave or transfer without overstaying. If a step is missed, the quota slot stays occupied, a WPS discrepancy stays on file, and future permit applications can be held up until it is cleared.
Correcting a cancellation later costs more than doing it properly at the time. A short piece of correct paperwork at exit is cheaper than a blocked establishment file three months later. We handle the cancellation as part of the same file as the hire: the gratuity is already provided for, the final WPS run is reconciled, and the quota slot is released for the next person you hire.
Hiring in a free zone or on the mainland
The two routes hire under different authorities. Free zone employment is administered by the zone (DIFC and ADGM also have their own employment law), applications are filed through the zone portal, and the number of visas is capped by licence tier. Mainland employment runs through MOHRE, uses its skill-level classifications, and generally suits businesses that need physical premises and want to trade across the local market without a distributor.
Neither route is automatically cheaper. The right one matches where you operate and how many people you will employ. If you are still comparing structures, our mainland vs free zone comparison sets them side by side. If the company already exists, the practical question is whether your current quota fits your hiring plan, and we check that before you give anyone a start date.
Reference numbers
Frequently asked questions
Can I hire before the company is ready?
What does a visa ban or block actually mean?
How much gratuity do I owe an employee who leaves?
Is health insurance mandatory for my staff?
Free zone or MOHRE: which is cheaper to hire under?
Do I owe gratuity to staff on visas elsewhere?
This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.