This post aims to provide you an estimate of the EOR cost in Dubai.
In fact, we as an EOR provider in Dubai charge within that range, and prices are generally accurate.
I am not only discussing price but also pricing models, factors behind price changes, hidden fees, EOR selection criteria, and more.
Let’s get started…
Author
Co-author
This post aims to provide you an estimate of the EOR cost in Dubai.
In fact, we as an EOR provider in Dubai charge within that range, and prices are generally accurate.
I am not only discussing price but also pricing models, factors behind price changes, hidden fees, EOR selection criteria, and more.
Let’s get started…
Author
Co-author
Get in Touch with Us
Leah Maglalang
Business Coordinator UAE
An EOR is a solution to many business challenges. They not only get you employees without setting up a local entity in Dubai but also save time, make processes hassle-free, and provide continuous support. In return, you pay a price to scale your company.
Most UAE EOR services cost between $199 and $1200 per employee per month. This is the flat rate, and prices vary depending on service quality and plan selection.
Mid-tier providers usually charge between $400 to $699 per month per employee to provide EOR services in Dubai.
Some EOR service providers even charge $200 to $350, but with very limited options.
Providers sometimes offer a percentage of payroll (8–20%) instead of a fixed fee.
The above-mentioned cost not only includes getting you employees but also managing payroll, compliance with local government, handling contracts and agreements, and providing HR support.
They also handle work visa sponsorship and residence permit processing for expatriates.
In addition to this, they provide statutory benefits that include health insurance, end-to-end gratuity calculation, and more.
Some EORs also provide company cards, fuel cards, gym membership, and additional benefits.
Expat employees require a work visa, a residence permit, Emirates ID, and insurance, which increases the cost. On the other hand, local hiring may require social security contributions that are also handled by the EOR. However, this is less complex and costly than expatriate hiring.
EOR providers’ fees usually do not change by region, such as free zone vs mainland or local hiring vs expat hiring. The cost accumulates differently for each type of hiring.
Employer of Record (EOR) service providers offer different types of pricing models for customer flexibility. Two models are more commonly used: flat monthly fees and percentage-based pricing, with other discounts included on longer contracts.
In this pricing model, an EOR charges a fee per employee they hire for you. The charging period is monthly. This flat-fee model helps to estimate the hiring costs. A flat monthly fee per employee in Dubai can range from $200 to $1500, depending on the role, service quality, and other terms.
EORs also provide you with the option to pay a percentage of the gross salary of each employee. This typically ranges from 8% to 20%. This model is highly useful when gross salary fluctuates monthly. Companies use this pricing model for roles like salespeople and paid ads specialists, where compensation fluctuates.
You can go with both options, flat fee and percentage-based pricing, if an EOR agrees. Companies also offer base-fee and percentage elements, such as a $500 fee for the first employee and $400 for the second, up to a limit. Other options can include tiered pricing by headcount. More employees mean fewer costs. Some EORs also provide custom enterprise packages.
Why EORs may appear expensive.
The answer is that EORs may seem expensive, but the problems they solve are worth paying for. For this reason, demand for EORs is increasing over time. Below are some factors that affect the service fees:
Service fees differ based on many factors, including employee role and salary level. Prices could be increased for senior-level hiring, executive compensation, benefits, and allowances.
This is another factor that affects pricing. Although an EOR may charge extra for work visa setup, additional fees from visa providers may apply. They also have to manage Emirates ID fees and renewals, medical test processing, labor cards, immigration filings, and more.
Dubai requires health insurance for employees. Setup fees are required. When an EOR needs to provide allowances and housing, costs are added to your company’s budget.
Free zones offer quicker processing with cheaper visa fees. While mainland labor laws are stricter, complying with them takes time, effort, and money.
In this area, you may have to face additional costs after signing the contract, which can put your budget at risk. Transparency is very important in this field. The best way is to review all charges in advance.
An EOR is composed of multiple subservices. There might be additional fees for availing some subservices that come under EOR. Some companies charge additional fees for one-time setup, employee onboarding, contract drafting, or system/payroll configuration.
Not all additional fees are unfair because EORs charge for third-party costs that you could pay yourself, but with bearing the time and effort. EORs can charge fees in the name of visas, which can include visa sponsorship markups, work permit processing fees, Emirates ID coordination costs, and other charges. You can confirm such things before working with an EOR.
Fees may be included in total costs or added separately when an EOR provides benefits to your employees. For example, an EOR needs to pay the health insurance admin fee, which the provider later charges to you. They can charge for retirement allowance handling, supplemental benefits, and other related services.
Most Employer of Record service providers in the UAE do not charge these types of fees, but some do. These fees cover contract change charges, termination process fees, offboarding admin costs, etc. You need to consider that offboarding costs are often billed separately.
Factor | EOR | Local Entity | Contractors |
|---|---|---|---|
Setup Cost | Low setup | Very high | None |
Time to Hire | Fast hiring | Slow setup | Immediate |
Legal Compliance | Fully managed | Full responsibility | High risk |
Payroll Handling | Included | Internal setup | Self-managed |
Visa Sponsorship | Included | Required | Not applicable |
Upfront Investment | Minimal | Heavy capital | Minimal |
Ongoing Costs | Monthly fee | Fixed overhead | Variable |
Compliance Risk | Low risk | High risk | Very high |
Scalability | Easy scale | Difficult | Limited |
Exit Cost | Low exit | High closure | Low exit |
Complexity, compliance, local systems, and infrastructure are the core cost drivers of high EOR pricing in Dubai.
Dubai is a dynamic market for many types of businesses, and due to its tax advantages, employers are attracted to it. Understanding this, the government wants to create a balanced environment between employers and employees.
This led to adding some extra legal labor layers to protect workers. To comply with these legal layers, costs add up.
This is one of the main reasons behind the slightly higher fees of EORs in Dubai. Because EORs have to invest extra money, time, and effort in the following areas:
Although understanding Dubai labor laws does not add extra costs to EORs directly. Yet, complying with these legal rules, maintaining compliance, and avoiding penalties can still result in additional expenses.
When an EOR works in payroll administration and also fulfills WPS requirements, a strong team, time, and strategy are needed, which add up to the total service cost.
There might be an EOR you partner with that does not have a local entity. Either they have to register or partner with a Dubai company to hire smoothly, but in both cases, they incur additional costs that are passed on. These costs typically include:
How do you select an EOR with an affordable price, useful features, and expertise in the Dubai market?
This process is now more straightforward. Below are some points that you should look at before partnering with an EOR in the UAE.
You must clarify flat fees, confirm service inclusions, ensure no hidden markups, and verify clear visa cost pass-throughs. Lastly, request a breakdown of setup fees and recurring costs.
It is very important that an EOR has expertise in the Dubai or local UAE market. They must have proficiency in labor law, MOHRE, WPS, and statutory benefits.
If an EOR is flexible in its terms, that is a very useful feature. Circumstances change, rules change, company needs change, and financial conditions change; these shifts demand flexible terms. You can adjust contract length, terminate with simple clauses, handle pro-rated costs, and more.
If an EOR offers no minimum headcount lock-in, tiered pricing discounts, and fast staff additions or removals, these are good signals that the EOR understands your needs and that working with them will be hassle-free.
Evaluation Area | What to Check | FMC Group |
Pricing Model | Flat monthly | ☑ Yes |
Cost Transparency | Full breakdown | ☑ Yes |
Hidden Fees | None disclosed | ☑ Yes |
Setup Costs | Clearly stated | ☑ Yes |
Visa Costs | Pass-through | ☑ Yes |
UAE Compliance | Local expertise | ☑ Yes |
MOHRE Coverage | Included | ☑ Yes |
WPS Payroll | Fully managed | ☑ Yes |
Visa Sponsorship | Employer handled | ☑ Yes |
Contract Terms | Flexible | ☑ Yes |
Termination | Simple process | ☑ Yes |
Scalability | Easy scaling | ☑ Yes |
Volume Pricing | Available | ☑ Yes |
Local Presence | UAE operations | ☑ Yes |
Client Support | Dedicated manager | ☑ Yes |
FMC Group is a German-owned company that operates globally in over fifty countries. They have been providing EOR services for over fifteen years globally. Among these fifty countries, Dubai is one where FMC has expertise. It may be notable that, with no hidden charges, FMC provides the following solutions under its employer of record service in Dubai:
So, book a free thirty-minute consultation call with FMC Group and gain a deeper understanding of the Dubai market with us.
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