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Housing allowance UAE labour law

housing allowance uae labour law

As per UAE labour law, establishments with 50 or more workers, where each employee earns less than AED 1500 per month, must provide accommodation or a housing allowance in cash.

This article will delve into the intricacies of housing allowance UAE labour law in 2023, highlighting the key aspects and implications.

Office of Al Mulla. Whatsapp: Click here. Location: Dubai. Phone: 00971501961291.

Housing allowance UAE labour law.

  • The Basics.
    Housing allowance is a crucial component of the UAE labour law designed to ensure the well-being of workers. It serves as a safeguard, primarily benefiting those who earn below AED 1500 per month.
  • Grade and Marital Status: Determinants of Housing Allowance.
    Housing allowance in the UAE is not a one-size-fits-all concept. Instead, it varies based on an employee’s grade and marital status. This is where the law gets nuanced, making it essential for employers and employees to be well-informed.
  • Percentage or Amount-Based Allowance: The Options.
    Employers have two options when providing housing allowances: percentage-based or amount-based. The choice depends on the grade and marital status of the employee. This flexibility ensures that workers receive housing support tailored to their circumstances.
  • Limits on Percentage-Based Allowances.
    While percentage-based allowances offer adaptability, it’s important to note that they can be subject to maximum and minimum limits, as outlined in the UAE labour law. This serves as a protective measure to prevent potential exploitation of workers.
  • Why Compliance Matters.
    Compliance with housing allowance regulations is a legal obligation and a moral responsibility. By adhering to the UAE labour law, employers demonstrate their commitment to the well-being of their workforce.

FAQs about housing allowance UAE labour law.

Housing allowance is determined based on an employee's grade and marital status, and it can be provided as a percentage or an amount.
Yes, UAE labor law may impose maximum limits on percentage-based housing allowances to protect workers from potential exploitation.


In the UAE, the housing allowance is a fundamental provision in labour law, ensuring that workers earning less than AED 1500 per month receive accommodation or financial support.

Employers and employees need to understand the nuances of grade and marital status in determining housing allowances. By complying with these regulations, employers not only uphold the law but also prioritize the welfare of their workers.

For expert guidance and legal consultation regarding labour cases in the UAE, Al Mulla Lawyer & Legal Consultant stands out as the best choice.

With extensive knowledge of UAE labour law, they can help both employers and employees navigate the complexities of housing allowance and other labour-related matters.

Regarding housing allowance in UAE labour law, knowledge and compliance are key to ensuring a fair and equitable workplace.

Contact the office of Al Mulla via Whatsapp. Click here. Or visit us at our law firms: Dubai. You can also call us on phone: 00971501961291.

Read about UAE Labour Law Staff Accommodation Guidelines 2023.

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