A recruiter calls with a better offer. No basic salary, but the commission split looks generous, maybe even double what you’re making now. Before you say yes, know this: commission-only contracts are perfectly legal in the UAE, but the paperwork behind them decides whether you actually get paid fairly when things go sideways. Gratuity, allowances, even proving your income for a bank loan, all of it traces back to what’s written in your contract, not what the hiring manager told you over coffee.
If you’re a salesperson, business development exec, or anyone in the UAE weighing a commission-heavy job against a salaried one, this is written for you. Same goes if you already work commission-only and want to know whether your existing contract actually protects you. No legal background needed, we’ll keep the law simple and the examples real.
They are. UAE labour law, specifically Federal Decree-Law No. 33 of 2021 and the rules that sit underneath it, treats commission as a form of wage, not some informal bonus arrangement. So a company can legally hire you on a pure commission basis, or a mostly-commission basis, without breaking any rules.
Here’s the catch nobody mentions upfront: your contract still has to go through MOHRE, and if a dispute ever lands in court, judges only look at what’s written down. Verbal understandings don’t hold up. So “legal” doesn’t mean “automatically safe for you,” it means the structure is allowed, provided your specific paperwork is done properly.
Same as a normal employment contract, minus the fixed paycheck. Instead of a flat monthly wage, you and the employer agree on a percentage of whatever you bring in, sales, revenue, sometimes profit. That percentage, and everything around it, needs to be spelled out in writing.
This isn’t optional detail. UAE law says every contract must state the wage type and amount clearly. Leave it vague, and if you ever end up disputing pay in court, a judge decides the number for you, usually with far less information than you’d want them working from. Nobody wants their salary decided by a stranger reading a badly written PDF.
Before you sign anything, check for these:
Missing any of these? Ask for it in writing before you sign, not after your first commission cheque is late. A hiring manager’s promise means nothing once you’re a few months in and things get messy.
Short version: gratuity is based on basic salary, never on your commission earnings. And there are really only two situations you’ll fall into.
Your contract lists a basic salary, even a small one. Then gratuity follows the standard UAE formula, calculated on that basic figure:
| Years of Service | Gratuity Owed |
|---|---|
| First 5 years | 21 days of basic salary per year |
| Beyond 5 years | 30 days of basic salary per year |
Your contract lists no basic salary at all. Then you’re classified as a piecemeal worker under the law. Your daily wage, for gratuity purposes, gets averaged out from your actual earnings over the six months before you make the claim. This isn’t a grey area either, Dubai’s Court of Cassation has already ruled this way in real cases.
What this means in plain terms: a contract with some basic salary, even AED 1,000, gives you a number you can calculate yourself, today, without waiting to see how your last six months of sales go. No basic salary means your gratuity is basically a bet on how well you were performing right before you left.
Yes, and honestly, most people don’t push hard enough here. Commission-only doesn’t mean bare-bones. You can still negotiate:
None of these need a basic salary to exist alongside them. They just need to show up in the contract as actual clauses. Once written in, your employer is bound to them the same way they’d be bound to paying your basic wage.
Ask yourself these five things:
If you’re unsure about even one of these, don’t sign yet. Fixing a contract before you sign takes a week. Fighting over an unclear one after you’ve left the job takes a lot longer.
A commission-only offer can absolutely be worth taking, especially if the company pays reliably and the upside is real. But the contract is where all of that gets locked in, or falls apart. Offer letters and verbal assurances don’t carry the same weight as a properly drafted employment contract in a UAE court.
Before you sign, employment contract drafting and review services can go through your commission terms, basic salary clause, and negotiated perks to make sure everything actually holds up legally. If you’re the one hiring on commission-only terms, the HR and PRO services team handles the MOHRE registration side so nothing bounces back later. And if this job offer has you thinking about starting your own thing instead, the business setup consultation is worth a conversation too.
Is commission-only pay legal in the UAE?
Yes. UAE labour law permits commission-only and performance-based contracts, as long as the payment structure is documented clearly.
How is gratuity calculated if there’s no basic salary?
If a basic salary is listed, gratuity uses the standard 21/30-day formula on that amount. If not, gratuity is based on your average earnings over the six months before your claim.
Can I negotiate a housing allowance on a commission-only job?
Yes. Housing, transport, flights, and insurance can all be negotiated and written into the contract, regardless of whether there’s a fixed salary.
Does a commission-only contract still need MOHRE approval?
Yes, same as any other UAE employment contract, it needs to be registered and approved by the Ministry of Human Resources and Emiratisation.
What if my contract doesn’t explain how commission is calculated?
If a dispute comes up, a court decides the wage itself, usually without the details working in your favor. Get this fixed before you sign, not after.
Should I even take a job with zero fixed salary?
Depends on how reliably the company pays and how tightly the contract is written. Even a small basic salary gives you clearer gratuity and easier proof of income down the line.
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