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What is basic salary in UAE labour law, and what percentage of total salary should it be?

Asked by Anonymous·Jun 26, 2026·1 answers
An employee notices their basic salary is a small fraction of their package and wonders if there is a required ratio.

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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Jun 26, 2026
For onshore private-sector jobs, UAE law sets no required percentage of basic salary to total salary. The UAE Government portal states that there is no minimum salary stipulated in the UAE Labour Law. Article 27 of Federal Decree-Law No. 33 of 2021 only lets the Cabinet set a minimum wage by resolution. MOHRE has announced a minimum wage of AED 6,000 a month for Emiratis in the private sector from 1 January 2026. The DIFC is different: its Employment Law treats basic wage as at least 50% of the wage for DEWS contributions and pre-2020 gratuity. A low basic lowers gratuity, overtime and other basic-based entitlements. The full breakdown is in our guide to basic salary in the UAE.
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