Understanding salary raises

Are Salary Raises Mandated by Law in Dubai?


Hello, I’m an expat working in Dubai for the past two years. I’ve been doing well in my job, but I haven’t received any salary raise since I started. I’m wondering, is there anything in Dubai’s labor laws that entitles me to a periodic salary raise, or are raises entirely at the discretion of my employer? Any guidance on this matter would be greatly appreciated!

Are Salary Raises a Legal Right in Dubai?

Regarding your question about salary raises in Dubai, it’s important to note that there is no specific provision in Dubai’s labor laws that entitles an employee to an automatic salary raise after a certain period, such as two years of employment. Salary increases are generally at the discretion of the employer and are often based on factors like company policy, individual performance, and business conditions.

However, there is a notable exception to this general rule. If you have a written agreement or clause in your employment contract that specifies a salary increase after a certain period (for example, a certain percentage increase after one year), then this agreement is legally binding. The UAE Labor Law requires employers to honor the terms of the employment contract. So, if your contract includes such a clause, your employer is legally obligated to provide the agreed-upon salary raise.

In the absence of such a contractual agreement, salary raises remain a matter of negotiation between you and your employer. It’s always a good practice to have open and professional discussions about your performance and remuneration, especially if you believe your contributions to the company warrant a salary review.

Remember, it’s crucial to have clear and documented agreements regarding salary adjustments to ensure there are no misunderstandings in the future. If you’re considering negotiating a raise or any changes to your contract, it might be beneficial to seek advice or assistance from a legal professional familiar with employment law in Dubai.

Something Noteworthy

The practice of salary raises being largely at the discretion of the employer, rather than being mandated by law, is not unique to Dubai or the UAE; it’s quite common in many parts of the world. In most countries, the specifics of salary increases are typically governed by individual employment contracts and company policies rather than by statutory law.

In many places, including the United States, the United Kingdom, and various other countries, there are no legal requirements for employers to provide annual raises or cost-of-living adjustments, unless specified in an employment contract or union agreement. Salary increases are often based on factors like individual performance, company profitability, economic conditions, and internal pay structures.

However, there are some exceptions globally. For instance, some countries have laws regarding minimum wage adjustments, which can indirectly affect salary raises. These adjustments are usually linked to inflation rates and cost-of-living changes. But these are adjustments to the minimum wage rather than mandated across-the-board salary raises for all employees.

That being said…

Please note that the information provided in this article is for general informational purposes only and is not intended as legal advice. While I am not a lawyer or legal expert, the content presented here is based on thorough research and consultations with legal professionals in Dubai and the UAE to ensure accuracy and relevance. However, it should not be considered a substitute for professional legal advice. Employment laws and regulations can vary and change, and individual circumstances can differ significantly. Therefore, for specific legal issues or concerns regarding employment and salary matters in Dubai or the UAE, it is recommended to consult directly with a qualified legal professional.


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