HIRING A NEW EMPLOYEE IN UAE

Analyze the labor price and its distribution within the UAE and to decompose it to direct price to companies and indirect use of public services and infrastructure, security and social risks, etc. Those prices area unit compared to and coupled to produce estimates of foreign staff to of draw analysis the impacts of those prices on many market problems and on the power of the UAE economy to vie in international markets. In the UAE, it is calculated that there are more than four million foreign laborers that work in around 260,000 private establishments.

Administrative & Recruitment Costs

This type shows all types of fees that companies pay to various ministries and departments to import workers and allowing them to work in the UAE, in addition to costs that are paid by those corporations for human resources activities related to the employment of those workers

Labor Variable Costs

They play for wages and salaries and all economic (monetary) and in-kind (non-monetary) interest that are related to workers

Social Costs

They represent all straight and indirect costs that are carried by local and federal governments and society for the employment of workers. The communal cost, which makes around 21% of the overall yearly cost of employment in general, and 8% of the cost of skilled workers, and 35% of the entire fee of amateurish employees, is a chief component of the total cost, especially for unskilled workers.

The Overall Annual Management & Recruitment Costs

Each worker is calculated at around 2,674 AED in general, and 3,404 AED for skilled workers and 2,296 AED for unskilled workers. Wages and cash and non-cash benefits are estimated at around 41,000 AED yearly per worker in general. This cost for an experienced worker is close to 7 times that for an unskilled worker (129,302 AED to 18,925 AED yearly). The total social cost, which is presumed to be the same across skill levels, is estimated at around 14,066 AED.

Compared to the costs of employees, efficiency levels point out to very large economic rents that are enjoyed by personal companies and by the UAE economy from using overseas workers. These costs are close to 170,000 AED yearly per worker on average, around 360,000 AED annually for a skilled worker and around 121,000 AED for an unskilled worker.

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