How to Hire Your First Employee in a UAE Free Zone Company 2026
Hiring your first employee in a UAE free zone company involves several steps and government registrations. Here is the complete 2026 step-by-step guide.
In this guide:
Before You Hire — What You Need
- Employer registration with MOHRE: Register your free zone company with Ministry of Human Resources and Emiratisation (MOHRE)
- Work permit quota: Confirm visa quota available from your free zone
- WPS registration: Register for Wage Protection System to pay employee salaries via WPS
Step-by-Step Hiring Process
- Step 1: Issue offer letter to employee; agree salary, role, and terms
- Step 2: Register with MOHRE (if not already); create MOHRE account
- Step 3: Apply for employee entry permit via free zone authority (if employee is abroad); costs AED 1,500-2,500
- Step 4: Employee arrives in UAE on entry permit
- Step 5: Employee undergoes medical fitness test (AED 200-400)
- Step 6: Apply for residence visa; pay ICA fees
- Step 7: Employee applies for Emirates ID (AED 270-370)
- Step 8: Sign official MOHRE employment contract
- Step 9: Begin paying salary via WPS
MOHRE Employment Contract
- Mandatory: All UAE employees must have MOHRE-registered employment contract
- Languages: Arabic and English; Arabic prevails in UAE courts
- Contents: Salary; working hours; leave entitlements; gratuity terms
Annual Cost of an Employee (AED 8,000/month salary)
- Salary: AED 96,000/year
- Visa and medical: AED 8,000-12,000 one-time
- Gratuity accrual: AED 5,600/year (21 days)
- Health insurance: AED 3,000-6,000/year
- Total cost: Approximately AED 110,000-115,000/year for first year