What is the average salary in Dubai 2023?

Dubai isn't only famous for its tall buildings and attracting tourists. It's also a city where businesses are growing a lot. You can get a lot of opportunities to earn money by exploring different sites like Great Dubai Jobs etc. Moreover, you can get there physically and find out your related jobs. If you're curious about how much people usually earn in Dubai or how expensive it is to hire workers there, we have the information for you.

In 2023, the usual monthly salary in Dubai is around 21,500 AED (that's the money they use there).  Even though this number might sound big, Dubai's average salary is much less than what people get in rich countries like the USA (7,900 USD) and the UK (8,163 USD). This is why businesses that want to expand might think about hiring workers from Dubai.

In this article, we'll carefully explore the regular salary in Dubai. The smallest amount of money that's allowed to be paid to workers. Moreover, how much it costs to live there.

What do people usually earn in Dubai?

Well, according to Salary Explorer, the average yearly salary there is 258,000 AED (that's their money) in 2023 exchange rates. This number gives you a general idea about how well the economy is doing in Dubai and the kind of life people have there.

But we're not stopping there. We're also going to talk about more salary details. Like the middle point between all the salaries (that's called the median). Moreover, the range of average salaries in Dubai 2023. This will give you a clearer picture:

Remember, the salary numbers we're mentioning here are just general estimates. What each person gets can be different based on things like their education. Furthermore, how much experience they have and where they work.

Let's talk about two more important things: the median salary and the range of salaries.

Median salary

In Dubai, the median salary is 19,000 AED every month. This means half of the people there make less than 19,000 AED, and the other half make more.

Average salary range

In Dubai, salaries cover a good range. They start from a minimum of 4,810 AED (about 1,310 USD) per month and go up to a maximum of 99,000 AED (around 26,956 USD) per month.

The average salary range only includes salaries that fall between the lowest and the highest averages in Dubai. It's important to note that the actual lowest salary can be even less than this range, and the highest paying job might offer even more money.

Average Hourly Wage in Dubai

The average amount of money a person earns for each hour of work in Dubai is 91 AED. This is the hourly pay rate for the typical worker in the city.

Government vs. Private Sector Salaries in the UAE

When it comes to earnings, do you get more money in a private company or a government job? On average, the difference in salaries between the public or government sector and the private sector in the United Arab Emirates is 6%.

Here's how it breaks down:

 Private Sector

The average salary is 13,800 AED.

Public Sector

The average salary is 14,700 AED, which is 6% higher than the private sector.

This means that, generally, government jobs tend to pay about 6% more than private sector jobs across various career fields in the UAE.

How salaries increase each year in Dubai?

Getting a raise in your salary every year is something important in many places, including Dubai.

According to Salary Explorer, the United Arab Emirates (UAE) typically increases salaries by an average of 8% every 17 months. This means that people usually get a pay raise of 8% about once every year and a half.

On a global scale, the average salary increase is 3% every 16 months.

Salaries Going Up in Different Industries

Each industry in the UAE has its own rate of salary increase on average. Let's look at how much salaries tend to go up each year in different industries as of 2020:

 Healthcare

On average, salaries increase by 8% every year.

 Information Technology

People in IT usually get around a 6% raise annually.

Education 

In the field of Education, salaries typically go up by 5% each year.

Energy

Those working in the energy sector can expect an average increase of 4% per year.

Construction 

People in the construction industry salaries increase by about 3% annually.

How salary increases change with experience?

Just like in many other places, the amount salaries go up each year in Dubai often depends on how much work experience someone has. This is because employers in Dubai, like elsewhere, want to keep their experienced employees happy and motivated.

Here's a breakdown of how the average annual salary increments change based on work experience levels:

Junior Level

People who are relatively new to their jobs can expect their salaries to increase by about 3% to 5% each year.

Mid-career

Those who have been working for a while and have gained some experience might see their salaries go up by around 6% to 9% annually.

Senior Level

For experienced professionals, like senior employees, the yearly raise could be in the range of 10% to 15%.

Top Management

People in top management positions, like CEOs, enjoy more significant raises. Typically, around 15% to 20% each year.

The lowest pay in Dubai

A minimum wage is a set rule about how little you can pay an employee in a certain area. But in Dubai, things are a bit different.

Dubai doesn't have a fixed minimum wage decided by the UAE Federal Labour Law. Unlike most places, there's no specific amount that you have to pay someone as the lowest salary.

Back in 2013, the UAE Labor Ministry did approve minimum salaries for certain groups of workers. However, these minimums don't apply to everyone, and that's why they're not quite the same as a standard minimum wage.

Here's what those minimum salaries are for specific employee categories:

 University Graduates 

At least 12,000 AED per month

Skilled Technicians

 Minimum of 7,000 AED per month

Skilled Labourers

 At least 5,000 AED per month

In the UAE, employers also have financial responsibilities regarding payroll contributions. One of these is a 12.50% contribution toward the pension fund for Emirati employees.

Comparing Salaries in Dubai

Figuring out how much to pay an employee involves a lot of things, not just the average pays in the whole country. Different jobs, education levels, how long someone's worked, where they work – all of these matter.

Now, let's compare how much people make in Dubai based on different things:

Jobs and Professions

In Dubai, different jobs in various industries pay differently. Here's a look at the average salaries for some popular professions:

·         Investment Banker: 45,000 AED

·         Chef: 44,000 AED

·         General Manager: 35,000 AED

·         Project Manager: 20,000 AED

·         Health Insurance Agent: 19,600 AED

·         Human Resources Manager: 18,000 AED

·         Operations Manager: 15,000 AED

·         Software Engineer: 11,000 AED

·         Business Development Manager: 14,000 AED

·         Teaching Jobs: 10,400 AED

·         Tax Consultant: 9,500 AED

·         Investment Analyst: 8,333 AED

·         Graphic Designer: 7,000 AED

·         Civil Engineer: 7,000 AED

·         Mechanical Engineer: 6,000 AED

·         Nurse: 6,000 AED

·         Customer Service Representative: 5,554 AED

·         Legal Assistant: 5,500 AED

·         Secretary: 4,000 AED

·         Domestic Worker: 1,830 AED

These numbers can give you an idea of how much people in different professions generally earn in Dubai. Remember, though, these are averages and can change based on various factors.

Comparing Salaries Across Cities in the UAE

The United Arab Emirates (UAE) is part of a group called the Gulf Cooperation Council (GCC), which includes six Middle Eastern countries. The UAE's economy is one of the strongest in this area, coming second only to Saudi Arabia.

Among the Emirates in the UAE, Dubai's economy is especially vibrant. That's why, on average, people in Dubai earn about 10% more than folks with the same job title in other parts of the UAE.

Now, let's take a look at how the average salary in Dubai (21,500 AED) stacks up against the average salaries in other well-known cities in the UAE:

·         Abu Dhabi: 21,000 AED

·         Sharjah: 20,400 AED

·         Al Ain: 19,800 AED

·         Ajman: 19,300 AED

·         Fujairah: 18,100 AED

These figures show how the money you'd make in Dubai compares to what you'd make doing the same job in these other cities. Remember, though, these are averages and can change depending on different things.

Comparing Salaries Based on Education

Generally, having more education often leads to better pay. Let's see how income differs among employees with the same experience but different education levels in Dubai:

Certificate or Diploma Holders 

Earn about 17% more than those with only a high school education.

Bachelor’s Degree Holders

Make 24% more than those with a certificate or diploma.

Master’s Degree Professionals

Earn 29% more than those with a Bachelor’s Degree.

Ph.D. Holders

Get the highest pay, making over 23% more than Master’s Degree holders for the same job.

Comparing Salaries Based on Experience

Just like education, having more work experience usually means more money. According to a salary survey by salaryexplorer.com, a person's basic salary tends to double when they reach a ten-year mark in experience.

·         2-5 years of experience: Earn 32% more than newcomers.

·         5-10 years of experience: Make 36% more than professionals with less than five years of experience.

·         10-15 years of experience: Get 21% more than those with less than ten years of experience.

·         15-20 years of experience: Earn 14% more than those with less than fifteen years of experience.

·         20+ years of experience: Make 9% more than professionals with less than twenty years of experience.

Gender Pay Comparison in Dubai

While pay should not be influenced by gender, unfortunately, it often is. So, who earns more: men or women? In UAE, on average, there's a 7% difference between the salaries of male and female employees. But it also depends on the career.

Here's the breakdown:

·         Male: The average salary is 14,800 AED.

·         Female: The average salary is 13,700 AED, which is 7% less than male salaries.

This reveals that, generally, male employees tend to earn about 7% more than female employees in Dubai across a range of careers.

Employee Benefits in Dubai

To make up for the absence of a set minimum monthly wage, the labor law of the UAE requires employers in Dubai to offer certain benefits to their workers. Here are some of the benefits that employees in Dubai are entitled to:

Paid Leave

Employers must grant their employees annual paid leave, which is 21 days for the first year and increases to 30 days after the initial year.

Travel Expenses

Employers must ensure that all employees receive a return flight ticket to their home country. Especially, upon the completion of their employment contract.

Medical Insurance

After the probation period, employees should be provided with medical insurance by employers.

Gratuity

Employers are obligated to give employees an end-of-service compensation. Especially, when they complete the terms of their employment contract. This compensation should not exceed the equivalent of an employee's salary for 24 months.

These benefits are designed to offer some financial security and support to employees in Dubai. Even without a fixed minimum salary.

Cost of Living in Dubai

The cost of living in a place affects how much money people need to live there comfortably. It shows how much is required for basics like housing, education, transportation, and healthcare.

Let's break down each of these aspects:

Housing

The cost of housing in Dubai depends on where you live. Rent for a one-bedroom apartment in the city center is around 5,528.59 AED (1,505 USD) per month, and outside the city center, it's about 3,687.32 AED (1,004 USD).

Education

Dubai has both public and private schools. Public school fees are limited to 6,000 AED (1,634 USD) per year. Private education can be more expensive, especially for expatriates (people living in a country that's not their own).

Transportation

Dubai has a well-developed public transport system with buses and taxis. The average taxi fare is 2.44 AED (0.66 USD) per kilometer, and a bus ticket costs around 5 AED (1.36 USD).

Healthcare

Locals are covered by a government medical insurance scheme, but expats need private health insurance as required by the Dubai Health Authority (DHA).

Income Tax

The UAE is known for not imposing income tax on individuals. This is one of the reasons why many consider it a tax-friendly place.

Considering all these factors, you might be wondering if outsourcing to Dubai is a good choice for your business.

Dubai offers advantages like a relatively lower average salary and favorable tax laws. It has a large workforce and is recognized for its technological advancements, including AI initiatives. If you're looking to outsource advanced tech services, Dubai might be a great option.

Top Industries Outsourced to Dubai

Here are the three industries that businesses commonly outsource to Dubai:

Human Resource (HR) Services

Dubai specializes in HR functions like hiring staff, managing payroll, and providing HR consultation. The average salary for HR services in Dubai is 7,800 AED (2,124 USD) per month. Outsourcing HR services to Dubai allows you to establish consistent hiring practices for your company at a lower cost.

Information and Technology (IT) Services

Building an IT team requires skilled professionals, and finding them can be tough. Dubai offers a solution with its diverse talent pool and straightforward visa policies. For instance, hiring IT support in Dubai costs around 5,000 AED (1,362 USD) per month, significantly less than the cost in places like New York.

Business Process Outsourcing (BPO Services)

Dubai offers BPO solutions for tasks like data entry, customer assistance, and accounting services. The prices are reasonable, making it a cost-effective option. Hiring a call center representative in Dubai costs around 4,000 AED (1,089 USD) per month, compared to approximately 2,380.93 USD per month in the UK.

Outsourcing to Dubai in these industries can save costs while tapping into the city's skilled workforce and competitive pricing.

Conclusion

In 2023, the typical monthly salary in Dubai is about 21,500 AED. This is what most people earn on average each month. It's important to know that salaries can vary based on the type of job, how much education and experience someone has, and where they work. Dubai is also known for having a higher cost of living compared to some other places. So, while the average salary might seem good, it's important to consider how much things like housing, education, and healthcare cost.

FAQs

1. Is the average salary the same for all jobs in Dubai?

No, salaries can differ based on the type of job, experience, and industry.

2. How does Dubai's average salary compare to other countries?

Dubai's average salary is lower than developed countries like the USA and UK.

3. Do salaries increase with experience in Dubai?

Yes, generally, more experience leads to higher salaries in Dubai.

4. Is there a fixed minimum wage in Dubai?

No, Dubai doesn't have a set minimum wage, but certain employee categories have minimum base salaries.

5. Do I need to pay income tax on my salary in Dubai?

No, Dubai doesn't impose income tax on individuals.

6. Which industries are commonly outsourced to Dubai?

HR services, IT services, and Business Process Outsourcing (BPO) are popular industries in Dubai.

7. Do men earn more than women in Dubai?

On average, yes, men tend to earn about 7% more than women in Dubai.

8. Is the cost of living higher in Dubai compared to other places?

Yes, Dubai has a higher cost of living, especially in areas like housing and education.