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United Arab Emirates - Minimum Wages - 2011


LAST UPDATE

18 April 2011

SOURCES


Name of Act

Law Concerning the Regulation of Labour Relations - Federal Law No 8 of 1980, Issued on 20/4 / 1980 corresponding to 6 Jumâdâ al - Akhir 1400H, incorporating amendments up to Federal Decree Law No 08/2007 dated 13/11/2007; as published on the Ministry of Justice Legislation Portal and accessed 14 April 2011
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Name of Act

Ministerial Resolutions no. 156 of 2003 on Protection of Wages; published by the UAE Ministry of Labour and accessed 8 April 2011

Other source used

Al Arayiba ’UAE fixes minimum salary for professionals’ 2 January 2011 and accessed 18 April 2011

LEGAL DEFINITIONS


Employee/worker

Worker means every male or female working in return for a wage of any kind whatsoever for the employer and under the management and supervision thereof, even if out of sight. The term shall also include the employees working for the employer and subject to the provisions thereof.
Labour Law 1980 §1
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Employer

Employer means every natural or juridical person employing one or more workers in return for a wage of any kind whatsoever
Labour Law 1980 §1

Wage

Wage means whatever is given to the worker in return for his service by virtue of an employment contract, whether in cash or in rem, on a yearly, monthly, weekly, daily, hourly, piece basis or in accordance with the production or on a commission basis.

The wage shall include the cost-of-living allowance and every grant conferred upon the worker in recognition of his honesty or efficiency should such sums be set in the employment contracts or the by-laws of the establishment or be customarily granted so as the workers deem such grants as part of the wage and not a donation.
Labour Law 1980 §1

Minimum wage

Basic Salary means the wage stipulated in the employment contract during the term thereof between the parties, exclusive of any allowances whatsoever.
Labour Law 1980 §1

MINIMUM WAGE FIXING


Procedure

The minimum wage is set by the Government following consultation with social partners.
Labour Law 1980

Procedure in general

By virtue of a decree-law issued upon the proposal of the Minister of Labor and Social Affairs and the consent of the Cabinet, the minimum wage and cost-of-living index shall be determined either in general or for a particular area or a particular profession.

The minimum wages or adjustments thereon shall enter into effect as of the date of publication of the determining decree thereof in the Official Gazette.
Labour Law 1980 §§63, 64

Government decides after consultation of the social partners

The Minister shall submit his proposal to determine or reconsider the minimum wages upon the consultation of the competent authorities and the professional entities of the employers and workers, if any, and based on the studies and tables of fluctuation of the cost-of-living set by the competent authorities in the State, in view of ensuring that the minimum limits are sufficient to fulfill the basic requirements of the workers and guarantee the livelihood thereof.
Labour Law 1980 §63

Criteria

The Minister is to have regard to the cost of living with a view to guaranteeing the livelihood of workers and their families.
Labour Law 1980 §63

Needs of workers and their families

The minimum wage is to be set with a view to ensuring that the minimum limits are sufficient to fulfill the basic requirements of the workers and guarantee the livelihood thereof.
Labour Law 1980 §63

Cost of living

The minimum wage is to set based on the studies and tables of fluctuation of the cost-of-living set by the competent authorities in the State.
Labour Law 1980 §63

Inflation rate

The minimum wage is to set based on the studies and tables of fluctuation of the cost-of-living set by the competent authorities in the State.
Labour Law 1980 §63

Coverage

The minimum wage laws apply to the private sector.
Labour Law 1980

Scope

The scope of the minimum wage provisions mirrors the scope of the Labour Law.
Labour Law 1980 §§1, 3

Excluded categories

The Labour Law does not apply to the following categories of workers:
a - Employees and workers of the Federal Government and the governmental departments in the Emirates, members of the State, the employees and workers in public entities and institutions, whether Federal or local, and employees and workers appointed for governmental, Federal and local projects.
b - Members of armed forces , police and security.
c - Domestic servants in private households and similar occupations.
d - Workers in farms or pastures with the exception of persons working in agricultural institutions processing the products thereof or the persons permanently operating or repairing mechanical machines required for agriculture.
Labour Law 1980 §3

Level


Minimum wage level(s) in national currency

The Al Arabiya news service reported on 2 January 2011 that the UAE government fixed minimum salaries for professional staff according to the following categories:
1) Class I professionals - Dh12,000/month;
2) Class II professionals - Dh7,000/month;
3) Class III professionals - Dh5,000/month.
Al Arayiba ’UAE fixes minimum salary for professionals’
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In-kind allowances

No sum may be deducted from the wage of the worker in return for special rights unless in the following cases:

a - The recovery of any advances or sums paid to the worker in excess of his entitlements, provided that the deducted sum does not exceed in such case 10 % of the periodical wage of the worker.
b - Installments legally payable by the workers from the wages thereof such as the social security and insurance systems.
c - Contributions of the worker in the saving fund or loans due thereto.
d - Installments of any social project or any other privileges or services granted by the employer and approved by the Labor Department.
e - Fines imposed on the worker for any breaches perpetrated thereby.
f - Every debt paid in application of a judicial ruling, provided that the sum deducted in application of the ruling does not exceed one quarter of the wage due to the worker. Should there be numerous debts or debtors , the maximum deduction shall be equal to half the wage, and the sums required for retention shall be proportionally distributed among the beneficiaries after the payment of the legal alimony debt at the rate of one quarter of the wage.
Labour Law 1980 §60

Rate of payment

Workers employed in return for an annual or a monthly wage shall be paid at least once per month. All other workers shall be paid at least once every fortnight.
Labour Law 1980 §56
Ministerial Resolution on Protection of Wages §§1, 2

Scheduled frequency of adjustment

No statutorily prescribed frequency of adjustment identified.
Labour Law 1980

Enforcement mechanisms

The Labour Law establishes a labour inspectorate with power to supervise compliance, and sanctions for non-compliance, with the law.
Labour Law 1980 Titles Ten and Eleven

Labour inspection

Labour inspection shall be carried out by specialized inspectors affiliated to the Ministry of Labour and Social Affairs. Each labour inspector shall have jurisdiction to supervise the proper compliance with the provisions of the Labour Law related to employment terms, wages and protection of workers during the performance of their work, and matters related to the health and safety of workers and the employment of youths and women.

A labor inspector may take any of the following measures:
1 - To enter any establishment subject to the provisions hereof at any hour of the day or night without prior notice, provided that it is within the working hours.
2 - To carry out any examination or investigation necessary to verify due compliance with the Law. More particularly, he may:
a - Interrogate the employer or the workers, either privately or in the presence of witnesses, about any matters related to compliance with the provisions hereof.
b - Peruse and obtain copies and extracts of all documents required to be kept in accordance herewith and the decisions issued in application thereof.

Further, the authorized department of labour has a right to ask the foundation for a report done by a professional auditor clarifying the way of paying the workers’ wages in the period of time specified by the ministry. The foundation has to submit the above mentioned report on the time specified by the authorized department of labour.
Labour Law 1980 §§166, 167, 170
Ministerial Resolution on Protection of Wages §3

Fines in national currency for non-respect of legislation

Whoever breaches any imperative provision of the Labour Law shall be liable for a amounting to ten thousand Dirhams at least.
Labour Law 1980 §181

Other penalties

Whoever breaches any imperative provision of the Labour Law shall be shall be sentenced to imprisonment.
Labour Law 1980 §181
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Results generated on: 24th October 2014 at 20:47:58.
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