What is the Average Salary in Dubai? Cost and Comparisons

Dubai, a sparkling gem in the United Arab Emirates (UAE), is not only an architectural marvel but also a bustling economic powerhouse. This vibrant city is home to a diverse workforce and a dynamic business environment that beckons professionals from around the globe.

If you’re curious about Dubai’s average salary and the comparisons, We have covered all the information.

 

The average salary in Dubai according to SalaryExpert.com is 190,337 AED /per year which is 15,861 AED /per month Which is 4318.27 USD per month.

Also, the latest reports from SalaryExplore.com show the average salary in Dubai as 15,700 AED monthly ( 189,000 AED yearly). 

Let’s explore the average salary in Dubai, the average annual salary increment in Dubai, salary comparison in Dubai, and why Dubai stands out as an outsourcing hub.

What is the Average Salary in Dubai?

The average salary in Dubai, according to SalaryExplorer.com, stands at approximately 15,700 AED ( 189,000 AED yearly) which is 4274.43 USD as per exchange rates in November 2023.

Despite being a competitive figure regionally, it’s noted to be lower compared to developed countries such as the USA  (7,900 USD) and the UK (8,163 USD), paving the way for outsourcing opportunities.

Salary Range, Minimum Wage, and Starting Salary

The salary range in Dubai is wide starting from 2,860 AED (starting salary) to 75,200 AED maximum average salary, the actual maximum salary may be higher. This is not the minimum wage as per the law, but only the lowest recorded salary in the salary survey that had thousands of participants and professionals from all over the country. This range is indicative of the diverse levels of jobs available, from entry-level positions to high-stakes roles in various sectors.

Median Salary in Dubai

Diving deeper, the median salary – the middle value in a list of salaries – in Dubai is around 13,800 AED per month. This distinction from the average salary is important for a nuanced understanding of the earning environment, which means that 50% of the population in Dubai earns less than that while the other half earns more.

The Annual Salary Increment in Dubai

According to the Cooper Fitch UAE Salary Guide 2023 and recruitment consultancy Robert Half Alary guide salaries for professional services roles increased by an average of 2 per cent in 2023.

 

An inflow of talent to the region and more competition for roles shifted the market in favour of employers, according to recruitment consultancy Robert Half.

 

According to Cooper Fitch Salary Guide 2023, which polled senior management at 300 companies in the GCC:

 

  • The majority of companies (57%) expect to increase salaries in 2023. Approximately 45% expect to make a 0-5% increase, 5% anticipate salary rises of 6-9%, and 7% intend to boost wages by more than 10% during the coming 12 months.
  • Given anticipated levels of demand for fresh talent, it’s perhaps surprising that one-fifth (20%) of the organisations surveyed plan to decrease salaries in 2023.
  • When asked about their salary-related plans for 2023, almost a quarter of respondents (23%) said they did not intend to make changes during the coming 12 months.

Here’s a breakdown of the Salary increment according to Robert Half Salary Guide 2024:

  • Human Resources: The average salary increase in Human Resources is 4.4% (per cent), which was more than double that of other industries.
  • Finance and Accounting: Professional employees in the finance and accounting sector experienced an average salary growth of 1.6 per cent this year
  • Financial Services: Employees in Financial services witnessed an average salary increment of 1.2 %.
  • Information Technology: The salaries of Information Technology professionals are incremented by an average of 1.2 per cent and legal at 0.7 per cent, according to the salary guide.

The minimum wage in Dubai

 Dubai, and the United Arab Emirates (UAE) as a whole, do not have a standardized minimum wage system like some other countries.

 

Unlike many other countries, the UAE does not set a universal statutory minimum wage for employees. Instead, compensations are often influenced by factors such as the nature of the job, the industry, the employee’s nationality, qualifications, and experience.

 

However, there are specific guidelines and regulations that can indirectly influence minimum salary levels for certain categories of workers. For example, there are policies for certain groups like domestic workers, where the UAE government has set minimum wage guidelines based on the worker’s nationality. Additionally, some sectors or companies have their own internal standards for minimum wages.

 

Sector-Specific Wages: 

 

Instead of a universal minimum wage, the UAE sometimes sets minimum salaries for certain categories of workers. For example, there have been specific wage requirements for certain types of jobs, like domestic workers or workers in the construction sector. These minimums are typically set based on job type, nationality, and sometimes skill level or education.

 

Wage Protection System (WPS):

 

There have been provisions and rules to guard employees’ rights and make certain truthful reimbursements. For instance, in 2013, the UAE Ministry of Labor introduced a wage protection system. This system was designed to ensure that workers are paid their salaries on time and through a regulated, bank-based system. The objective was to prevent delays and defaults in salary payments, a crucial issue especially for lower-income and labour-intensive sectors.

 

It’s also important to note that compensation in Dubai often includes other components beyond basic salary, such as housing allowances, transportation costs, and health insurance, which can significantly affect a worker’s total earnings.

 

Salary comparison in Dubai

 

The salaries of employees in Dubai will always be influenced by factors like Education, Profession, Experience and location etc.

 

So, let us compare the average salaries in Dubai based on these factors.

1. Comparison of Salary By City

City Average Salary
Abu Dhabi
15,300 AED
Ajman
14,100 AED
Al Ain
14,500 AED
Dubai
15,700 AED
Fujairah
13,200 AED
Ras Al Khaimah
13,700 AED
Sharjah
15,000 AED
Um Al Quiwain
12,800 AED

Source: Salary Explore

2. By Profession 

Salaries in Dubai vary considerably across professions, with a software engineer’s salary in Dubai, for instance, differing significantly from that of a service industry professional.

 

Each profession has its own salary scale, influenced by market demand and skill scarcity.

 

Let’s have a look at how salaries change based on the profession:

 

Profession Average Salary per Month (AED)
Investment Banking Analyst
70,000
Chef
59,750
Manager
31,000
Project Manager
42,000
Software Engineer
22,350
Insurance Agent
20,000
HR Manager
31,000
Software Engineer
22,000
Teacher
17,000
Tax Consultant
17,000
Graphic Designer
11,650
Civil Engineer
14,125
Mechanical Engineer
11,000
Nurse
9,750
Legal Assistant
14,000
Secretary
12,000
Domestic Worker
7,600

Source: Glassdoor

3. Salary comparison by education

Educational qualifications can greatly affect salary potential, with those holding advanced degrees often commanding higher wages.

 

Here is the comparison of employees’ salaries with experience but different education qualifications :

 

  • Employees with a certificate or diploma earned an average of 17% more than those who only completed high school.
  • Employees with a Bachelor’s Degree make 24% more than their peers only with a certificate or a diploma.
  • Professionals with a Master’s Degree earn 29% more than employees who only completed a Bachelor’s Degree.
  • PhD scholars get the highest salaries by making over 23% more than Master’s Degree holders for the same job.

4. Salary comparison by experience

 

 
Experience level is another key factor, where a seasoned professional with years of experience in Dubai jobs can expect a higher salary compared to those just starting their careers.
 
 
 
Here is the salary comparison based on the employee’s work experience:
 
  • In Dubai, employees with 2 to 5 years of experience earn an average of 32% more than entry-level and junior workers with less than 2 years of experience in all industries and fields.
  • workers with more than 5 years of experience typically earn an average of 36% more than those with less than five years of experience.
  • For individuals with more than 10 years of work experience, salaries increase by 21% more than for professionals with less than 10 years of experience.
  • Professionals with 15 years of experience tend to earn 14% higher than those with less than 15 years of experience.

 

Source: SalaryExplorer.com

Mandatory Employee benefits in Dubai 

In the Dubai and United Arab Emirates (UAE), employers are required to provide certain mandatory benefits to their employees. These benefits are governed by UAE labour laws and are designed to ensure a fair and secure working environment.

Here’s an overview of the key mandatory employee benefits in the UAE:

  1. End of Service Gratuity: This is a form of severance pay, offered to employees who have completed a year or more of service. The amount is based on the employee’s last salary and the number of years of service. It’s calculated as 21 days’ wages for each year of the first five years of service and 30 days’ wages for each additional year, provided the total does not exceed two years’ pay.
  2. Annual Leave: Employees are entitled to a minimum of 30 calendar days of annual leave after completing 1 year of service. This leave is together with public holidays and is paid.
  3. Public Holidays: UAE labour law specifies several public holidays that employees are entitled to have off with full pay.
  4. Sick Leave: Employees are entitled to sick leave of not more than 90 days per year, following the completion of a probation period. The first 15 days are paid in full, the next 30 days at half pay, and the remainder is unpaid.
  5. Health Insurance: In certain emirates like Dubai and Abu Dhabi, employers are required to provide health insurance coverage for their personnel.
  6. Repatriation Costs: Upon termination of employment, the agency is liable for repatriation costs of the worker back to their home country. Unless the employee joins another employer inside the UAE.
  7. Visa and Work Permit: For foreign employees, the employer must handle and pay for the visa and work permit process.
  8. Maternity Leave: Female personnel are entitled to maternity leave with full pay for 45 days, provided they have completed at least one year of service.
  9. Overtime Pay: Employees who work beyond normal working hours are entitled to overtime pay, which is calculated at a rate of 125% of the regular pay. For overtime during public holidays and rest days, the rate increases.

These benefits are part of the labour laws in the UAE and are designed to protect the rights of employees working in the country. Employers are legally obligated to adhere to these requirements, and failure to comply can result in legal consequences. 

Cost of living in Dubai

The Average salary is impacted by the cost of living in that region.

 

The cost of living is defined as the amount of money that an individual needs to spend for basic shelter, education, health and transportation and income tax.

 

So, let us see the cost of cost of each of these basic parameters for living in Dubai.

 

1. Housing

 

When looking at the average Dubai living cost, one of the most important expenses to consider is housing. The Dubai property market is known for its sheer variety. Everything from grand villas to cosy studio flats caters to various budgets.

 

The area you choose to live in will greatly impact how much of your income goes towards rent or apartment buying costs and, of course, your cost of living in Dubai per month. 

 

  • A single-bedroom (1-bedroom) apartment in the city centre of Dubai costs around 7,496.36 AED (2040.98 USD) at the same time, the sing bedroom apartment outside the city centre costs around 4,322.97 AED (1176.98 USD).
  • Similarly, the 3 bedroom apartment, costs  14,660.03 (3991.37USD) AED in the city centre and  9,941.88 AED (2706.80USD) outside the city centre.
  • If you are planning to buy an apartment, then the cost would be around 15,005.50 AED per Square Meter to Buy an Apartment in the City Centre and 9,195.66 AED per Square Meter to Buy an Apartment Outside of the Centre.

Note: These prices are only for guidelines, the actual costs may change as per the location and other factors.

 

2. Schooling

 

In Dubai, a variety of educational curricula are available in schools, including British, American, Indian, and International Baccalaureate (IB), which are among the most popular.

 

Schools following the British, American, and IB curricula generally command higher tuition fees, with premier institutions charging between AED 4,500 and AED 11,500 monthly, varying according to the student’s grade.

 

Conversely, Indian schools in Dubai present a more affordable option, where top schools have tuition fees ranging from AED 2,900 to AED 5,500 per month.

 

Source: bayut.com

3. Transportation

 

Dubai offers an active public transport network, including buses and taxis that operate across the city.

 

Using a taxi costs around 3.00 AED per Kilometer while using a bus can cost you an average of 5 AED. You can also choose a Nol card which covers all the city zones to pay for bus, metro, ferry, and taxi charges. There’s also a monthly Nol pass for AED 350 that helps people travel faster. Living near your work can also help save time and money on travel.

 

If you choose your own vehicle then, the cost of transportation depends on the petrol costs, model of the vehicle and how frequently you travel.

 

4. Healthcare

 

People living in Dubai who are from there get their health insurance paid for by the government. People from other countries living in Dubai need to have their own health insurance as per the rules set by the Dubai Health Authority (DHA).

 

If the company you work for is sponsoring you, they have to give you health insurance. Sometimes, they also provide health insurance for your family.

 

If your company doesn’t give health insurance for your family, or if you have an investor visa, you need to buy it yourself from a health insurance company in Dubai.

 

The cost of medical insurance depends on what it covers. Basic plans start at AED 600 a year. More complete coverage for one person might cost about AED 5,500 a year. For a family of four, a full coverage plan might be between AED 15,000 and AED 25,000.

 

5. Income Tax

 

The UAE is very well known for being a “tax haven” as the UAE Government doesn’t charge income tax on people, and it provides options for tax-free investments to everyone living in Dubai.

 

With all these parameters considered, one should need a good salary in Dubai to live comfortably with family, and typically a salary above the average salary is considered a good salary in Dubai.

Is it a good idea for your business to outsource to Dubai?

 

The main advantages are Dubai’s generally lower average salaries and beneficial tax rules, but there are more reasons to think about outsourcing there.

 

Dubai, for instance, has a big workforce of more than 7.384 million people and is famous worldwide for its advancements in technology, fine machinery and world-class infrastructure, especially for the construction and hospitality industries.

 

Besides, the Dubai government supports tech through programs like Smart Dubai and the Dubai Future Foundation and even has a dedicated Minister of State for Artificial Intelligence (AI).

 

These aspects have turned Dubai into a popular choice for outsourcing high-tech services.

The Top 3 Outsourced Industries in Dubai

 

In Dubai, the three main industries that are commonly outsourced include:

 

1. Construction and Infrastructure Development

Dubai is a big centre for outsourcing in the construction and infrastructure sector. The city is famous for its excellent infrastructure and unique projects, attracting companies from abroad to outsource their building projects. For example, Arabtec showcases the city’s skill in managing big construction tasks, with its wide range of projects like tall buildings, airport terminals, and luxury homes.

 

2. Hospitality Management

 

The active tourism and hotel industry in Dubai is a great choice for companies wanting to outsource their hospitality management. With hotels usually 73% full and more guest rooms available since 2019, this sector in Dubai is rapidly expanding. The city’s focus on top-notch experiences makes it an ideal place to outsource hotel services.

 

3. IT Services

Dubai, known for its digital progress, is a prime spot for outsourcing IT services. The city has strong digital systems and many skilled IT professionals. While detailed data about Dubai’s IT sector isn’t in the search results, Dubai’s status as a tech innovation centre indicates it would be an excellent place for companies to outsource their IT and software development needs.

 

 

Note: The salary or any other numbers in the entire blog are only for the guidelines taken from various sources. For accurate information always consider the latest reports and releases from the official websites.

 

 

So Outsourcing to Dubai or other countries with lower average salaries has increased rapidly. However, the increased outsourcing also has many challenges like balancing the employee timings across different time zones of the world, tracking  Productivity, etc.

 

Fortunately, for all the employee tracking and management challenges, Time Champ – Time and Productivity Tracker can be a great solution. With Timechamp, employers can easily keep track of their employees’ work times, activities, productivity, and task progress.

Additionally, Time Champ also provides excellent features like project management, task management, location tracking, audio tracking and many more features. Time Champ is an all-rounder solution managing onsite, remote employees.

 

Conclusion

 

Understanding the salary landscape in Dubai is essential for job seekers and companies looking to outsource.

 

Even though Dubai has High-end infrastructure facilities the average salaries in Dubai are comparatively lower than the developed countries like the US and the UK.

 

While salaries can be attractive, they should be weighed against the cost of living and the nature of employee benefits. As Dubai continues to grow, its appeal as a global business hub remains strong, marked by competitive salaries and a diverse range of outsourcing opportunities.

 Book a demo for more details about our TimeChamp and how it can help you greatly in managing outsourced employees. 

 

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Frequently Asked Questions

The average salary in Dubai continuously varies depending on many factors like profession, location education, experience etc. The average salary in Dubai according to SalaryExplorer is approximately 15,700 AED per month, or 189,000 AED yearly.

Note: For accurate figures read the latest reports from the official websites. 

A “good” salary in Dubai can vary greatly depending on personal living standards and expenses. However, considering the average and median salaries, a figure above the average  (around 15,700 AED per month) might be considered good.

 

Note: For accurate figures read the latest reports from the official websites. 

 

There isn’t a standardized basic salary, the basic salary depends on your qualifications, profession, location etc. The basic salary in Dubai is generally decided by the employers based on many factors like the profession, nationality, etc. So, it also depends on one’s negotiation skills, but the lower end of the salary range starts from 2,860 AED​ per month.

A good expat salary would typically be higher than the average, considering additional costs for expatriates such as housing, schooling for children, and potentially higher health insurance premiums.

 The IT sector is one of the higher-paying industries, and the average salary of a software Engineer in Dubai is typically around 22,350 AED per Month. Note that this salary may vary depending the factors like one’s skills, experience, company and location.

This depends on your lifestyle and expenses. A salary above the median Dubai salary (13,800 AED per month) would generally allow for a comfortable lifestyle for a single individual.

Dubai does not have a standardized minimum wage system. The minimum wage is often influenced by factors such as job nature, industry, nationality, qualifications, and experience.

 Some job categories, particularly in the public sector, may have established minimum wage standards, but it’s best to check with the specific employer or the UAE Ministry of Human Resources and Emiratisation for the most up-to-date information.

The cost of rent in Dubai varies greatly depending on the location, type of accommodation, and the amenities provided. Here are some approximate monthly rent ranges in Dubai:

  • A single-bedroom (1-bedroom) apartment in the city centre of Dubai costs around 7,496.36 AED (2040.98 USD) at the same time, the sing bedroom apartment outside the city centre costs around 4,322.97 AED (1176.98 USD).
  • Similarly, for the 3 bedroom apartment, it costs  14,660.03 (3991.37USD) AED in the city centre and  9,941.88 AED (2706.80USD) outside the city centre.
  • If you are planning to buy an apartment, then the cost would be around 15,005.50 AED per Square Meter to Buy an Apartment in the City Centre and 9,195.66 AED per Square Meter to Buy an Apartment Outside of the Centre.

Note: These prices can fluctuate, so it’s essential to check current rental rates based on your specific preferences and requirements.

The salary for domestic workers, such as housemaids, nannies, or drivers, in Dubai can vary based on several factors, including the worker’s nationality, experience, and the terms of the employment contract. The average monthly salary for domestic workers ranges from A with a range from AED 1,800 – AED 8,400 with an average of 7,600 AED according to GlassDoor, although it can be higher for those with more experience or specialized skills.Â