Average Salary in Dubai (2024)

UAE and various Gulf countries like Dubai are the most popular locations for professionals.People also refer to the UAE’s economy as a booming business economy.But before looking for a job, often job seekers come up with an important question. What is the average salary in Dubai? To comply with the existing laws it is necessary to know about the average salary in Dubai.

When it comes to employment, the basic question of the employees is related to the wages provided to employees as well as the cost of living. The salaries or payout of employees is directly related to the knowledge and experience of employees.Jobs that require expertise and knowledge are highly paid, while jobs that require fewer skills pay less.

According to the new UAE Labor Law, the average salary in Dubai as well as other benefits must mentioned in the employment contract. The gross salary of an employee includes basic salary and all the allowances paid.

To sum up the details, there is no minimum wages or average salary in Dubai but there are three types of salary:

• Basic salary in Dubai: the basic pay provided to employees
• Gross salary = Basic compensation+ Allowances
• Net salary paid to employees – Gross Salary – Deductions

This is one of the most important and concerning questions of the people who are looking for a job in the UAE. It is also important for employers to know whether there is any minimum wage to comply with.

However, there is no minimum wage in Dubai. It means there is no minimum wage that an employer has to provide to their employees. But there is a concept of the average salary in Dubai.

Many people believe Dubai has a minimum wage, but the law does not define any minimum wages.

According to a famous resource, the average salary in Dubai is 2,58,000 AED per year.

Moreover, to get a clear picture of the average salary in Dubai we will discuss the median salary and average salary in Dubai.

1. Median Salary

Additionally, employees in Dubai and other Gulf countries earn a median salary of 19,000 AED per month.Therefore, it means that nearly half of the population in Dubai earns less than 19000 AED per month while the other half earns more than 19,000 AED per month.

Now the question that arises is, how to calculate median salary?

So, let’s understand this with a simple example. Suppose there are three employees. An employee X is earning 20,000 AED while Y is earning 25,000 AED per month while Z is earning a salary of 15,000 so the median salary will be 20000 AED. The total salary of the three employees is divided by the total number of employees.

Median Salary = Total salary of all the employees/ Number of employees

The average salary increment is the basic concept for all countries. Dubai is no different in this context.

According to a famous agency UAE has an average salary increment of 8% every 17 months. The world average rate is 3% every 16 months. It means the salary increment rate in Dubai is far better than in most countries.

Although, there are no minimum wages set for employees in Dubai but back in 2013, thelabor ministry of UAEapproved minimum wages for certain categories of employees. However, these salaries do not apply to all the categories of employees in Dubai and aren’t the same as minimum wages.

Employee-wise minimum base salary in Dubai are as follows:

The salary in Dubai factor of an employee is dependent on various factors such as profession, work experience and location.

Let’s make an easy comparison of salary on various parameters:

In Dubai and other Gulf countries, salaries may vary based on the profession of an employee such as finance, medicine, manufacturing etc. However, within the profession salary may depend on the job position and job role of an employee.

Let’s look at how salaries vary based on the profession:

UAE is part of the Gulf countries, which consists of six countries other than the UAE from the Middle East. The GDP of Dubai is second to Saudi Arabia which makes it even more competent.

Let’s make a quick comparison between the average salary in Dubai and other GCC (gulf countries).

A higher education level leads to a higher salary package for employees.

Let’s have a glimpse of how the level of education determines the salary package in GCC countries.

• Those employees with a diploma degree earn 17% more than high school employees.
• Employees having a Bachelor’s degree earn 24% more than employees who have a diploma degree.
• Employees with Master’s degrees earn 29% more than employees having Bachelor’s degrees.
• A PhD degree holder employee earns 23% more than an employee with a Masters degree.

Experience level is also a major factor that affects the income level in any country.

Here’s an overview of salary comparison by the experience level of a candidate:

UAE has certain mandatory leavesthat employers should provide to their employees.

Some of these employee benefits provided in Dubai are:

• Paid Leaves- In the first year 21 days of annual leaves are provided to employees and after one year 30 days leaves are provided in subsequent years.
• Travel Expenses-It is necessary for employers to provide return ticket to employees when their employment contract is completed.
• Medical Insurance- Provide medical insurance after their probation period is completed.
• Gratuity-It is necessary for employers to provide gratuity amount to employees after they completed a certain period with organization.

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