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Commission-Only Employment in the UAE: Understanding Your Rights and Contracts

Sun, Jul 12, 2026(45d ago)UAE

In the UAE, employment arrangements based entirely on commission or performance are legally recognized under the Federal Decree-Law No. 33 of 2021. If you are considering a role without a fixed monthly salary, your contract must explicitly detail the commission structure, including how payments are calculated, the specific performance criteria, and the frequency of payouts. Even in a commission-only role, your employment agreement should be formalized and approved according to Ministry of Human Resources and Emiratisation standards. Because "wages" in the UAE legally include various allowances and performance-based earnings, it is crucial that your contract clearly defines how your compensation is structured to avoid future legal disputes.

Regarding end-of-service gratuity and additional benefits, your entitlements remain protected by law. While gratuity is typically calculated based on a "basic wage," those in commission-only roles without a stated basic salary will have their daily wage determined by the average earnings from the six months preceding their claim. However, you are not limited to just commissions; you are fully entitled to negotiate additional perks like housing, transportation, and medical insurance. It is highly recommended that you ensure these negotiated benefits are written directly into your employment contract, as this documentation is the primary evidence required to hold your employer accountable for your total compensation package.

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