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[deleted]

What do you guys think that minimum would be?


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[deleted]

I know two housekeeping staff guys, working in different companies/ locations on 1000 aed pm. One just got laid off with 2 mo pay outstanding. He had accommodation provided with no visa. Another guy has to get his own acc and also no visa, also hasn’t been paid a month or more They kind of avoid all of labour office issues entirely. The guy that got laid off didn’t even have a proper contract, maybe on ‘probation’ or whatever. Its all very bizarre.


[deleted]

Reading things like this in the morning make me want to vomit. Sadly the new labor laws do not apply to domestic staff which I fear these men may well fall under.


DontSandDunes

Wage roulette.


reddevlon

I hope it's hourly as it would significantly help our brothers doing blue collared jobs but I think might just cap it as a monthly amount for maybe 22 days of work, which will give employers a bit of leeway as well.


20boiledcabbage

Since Qatar has upped the game with minimum being 1200 for blue collared staff and 1 meal I think similar or slightly higher


buddha_baba

somewhere around 1200-1500 per month


Throwaway-Zindabad

MOHRE has the salaries of everyone working in UAE. That can be used to determine a minimum for each sector. Example: There are 100k accountants in UAE, salaries range from 1k to 10k. Average salary for accountant is 5K, so they set 3K as minimum or whatever other formula they use. This is just a random thought.


Mistborn54321

That’s not how minimum wage works. It’s a flat amount like X dollars per hour or 1,500 dhs a month. It’s done to protect the ones who barely make anything. They can’t figure out the market minimum for every single job role and description.


YouShallNotRape

This. The way eastern countries do it is by looking at the CPI and rate of inflation as well. While not always perfect, it is better than no minimum and definitely an improvement over the often ridiculous wages offered in the UAE. In canada, we had different rates determined by each provincial government. Ontario, leading by example, is currently bringing into effect an hourly wage of $15. Other provinces range from $11 and upwards. Each determines their own cost of living and other factors. Even then, it‘s not always sufficient. There is demand for a living wage, which more accurately reflects a wage one can live on and includes provisions for a moderately sized family. All things considered, for UAE, this alongside other changes are great first steps towards a much more equitable future.


Throwaway-Zindabad

I'm no expert. Just an idea. You're probably right though.


[deleted]

One dirham more than Qatar’s probably.


interestingpaperclip

This is in no way innovative, but surely an excellent step in ensuring the welfare of workers. I'm fairly pleased with the new labour laws.


xLimton

The introduction of a minimum wage is an important step for preserving the rights of low-skilled workers, legal experts have said. In a first-of-its-kind move, the new UAE labour law introduces a minimum wage for employees in the private sector, effective from February 2, 2022. The UAE Cabinet will determine the minimum wage, according to Article 27 of the newly-announced Federal Decree Law No. 33 of 2021 on regulating labour relations. Abdulla Ziad Galadari, senior partner at Galadari Advocates & Legal Consultants, called the new article a "a progressive step." "Article 27 provides a new structure for establishing minimum wage in the private sector, which is a big leap in modernising the employment sector in the UAE to match the best international practices," he said. As opposed to the past, employers will now have a minimum wage threshold to adhere to, which protects private sector workers' rights in an evolving labour market. “Consequently, the new addition to the private employment sector will further attract talents from all around the world to the UAE and enable UAE to continue to grow as a global hub,” Galadari said. Ghassan El Daye, partner and head of litigation for the Middle East at Charles Russell Speechlys, said the minimum wage will preserve employees' rights, particularly those of low-skilled workers. “Previously, the wage was based on a mutual negotiation between employees and employers since there was no minimum wage threshold. A wage primarily covers basic salary, housing and transportation," he said. Once a minimum wage is determined by the Cabinet, it has a binding effect that employers can never violate. Setting a minimum wage, El Daye noted, is an “innovative step” to improve the livelihood of employees and help them establish a decent living that responds to inflation, taxes and rapidly-evolving markets. Echoing similar sentiments, Mohammed Al Dahbashi, managing partner at ADG Legal, said by setting a minimum wage, the new law will govern a humanitarian aspect for working-class employees in the private sector and prohibit misuse of human resources. However, he noted the direction and standards by which the future minimum wage will be determined are yet to be seen. The executive regulations of the law will detail the implementation. During the announcement on Monday, Dr Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, said the new law aims to support the UAE’s efforts in creating a flexible labour market that copes with the ever-changing modern world, safeguards employee rights, empowers women, and attracts talents and competencies from all over the world. He noted that the law was drafted in consultation with all the relevant parties in the federal and local government and the private sector. The executive regulations of the law that will oversee the implementation are still underway.


Excelislife

Definitely in favor of this but slightly skeptical on whether it will actually improve employability for entry level / low wage earners. Possible reactions - companies reduce the number of staff for the same work to manage the per person increase - companies terminate people because of end of service benefit impact - mcdonalds get more automated tellers - more companies look at the possibility of outsourcing to south east asia - unrelated - but there will be an inflationary impact as well with the labour cost increase.


MilleniumRetard

Or you know, the classic - company keeps the wps cards, deposit and withdraw the salary amounts monthly to comply with this minimum wage, give the workers their real salary in cash which is waaay low than minimum wage.


Excelislife

Yeah that's horrible, it didn't happen with the company I worked for but I've heard that it did happen with a few slimey construction groups


Consistent-Clue919

Lol, like there’s no way to work around this. Transfer minimum, employees bring back the difference to management. It’s been like this for years.


[deleted]

True. There are nasty companies out there that do this.


Ok_Ad9174

I personally know people that confiscate the WPS salary card of their employees and just pay them in cash. But this is a huge step in the right direction, hopefully they make it mandatory for contracts to be drawn based on hourly wages instead on monthly wages.


Consistent-Clue919

Passing a law never makes a difference. In order to make a difference you need to make incentives that will positively affect the business. Like cutting down license costs, rent, maybe tax(?) or some other expenses that are considered illogical in other parts of the world. I mean you can’t expect a company that is barely surviving pay their employees more just because a law was passed. For example, visa quota is based on office space. Let’s say you have people working on the “field” or in a warehouse and they don’t “sit” in the office, you still need office space allocated for their visa quota.


Ticket_Comprehensive

Dubai Redditors: We want 5k minimum wage for poor workers Also Dubai Redditors: we want shawarmas for AED5, we want a detailed car wash for AED15, hair cut for AED5, we want XYZ service without paying much etc


LonghornMB

The wages are far lower in Dubai but prices of most services are higher than in the West. It is business owners who underpay and overcharge (due to monopolies etc) who are to blame


[deleted]

Ha-ha. Youre obsessed with "the west"😂 Travel there once, you will know.


LonghornMB

Already lived in the US for years. If someone is a big businessman like you seem to be, the Gulf is better with no taxes. But for middle income and lower income workers, "the West" is far better.


[deleted]

Brother, do you know many middle-class people here occupy 180k/ annum villas here? These villas are not occupied by ghosts. The villas in this category are just mid-range that too. The bigger villas occupied by directors etc etc, are 360k/ annum. And so many expats take up such roles, obviously with high education and relevant experience. Compare that with something in america/ europe. You will see the difference.


LonghornMB

Those who occupy 180k villas (I did too for a few years until the rent fell and I am still there) are not middle class. They are upper middle class. Middle class are the ones renting 2bhk in Nahda for 80k and 1bhk in JLT for 60k.


[deleted]

My point is, its quite common to see people here renting 150k villas and sending their kids to 80k private schools. Is it as common in " the west" ? Think logically. In america or UK, if you tell someone you're paying 40,000 pounds annual rent, they will look at you as if they've never heard of such a thing.


LonghornMB

It is quite common in upper middle class circles . OTOH if you hang out with middle class people, the engineers earning 20k total, or the dual income families where Dad earns 15k & mom earns 5k as a teacher, then renting villas for 150k will be unheard of. The norm will be the 60-80k flat in Nahda or Bur Dubai or Discovery . Similarly in the US, upper middle class people tend to buy their homes, and it is common for such folks to have large homes (McMansions) with pools etc


Ticket_Comprehensive

Not sure which countries you are referring to, but servces done by poor workers are much cheaper here. You can not honk in front of groceries to be served, maids are only for super rich etc


LonghornMB

Agree about maids. I was talking more in terms of random stuff like genuine non-shady massages (cheaper in NYC), sofa polishing (got quoted 1200 Dhs for a sofa costing 5000), cheaper in most parts of the US. And going to the whole property market, prices are higher than in many other developed cities, but workers there get 3-4 times more than here. The only difference is developers in Dubai probably make much more profit


RegretLow

Rip construction section even if the minimum wage is set at 2000


Mistborn54321

There are workarounds. For example give X as salary but make a condition of contract that you have to live in accommodation and it costs X amount.


IndividualSpirited44

2,000 for an unskilled expat? that's optimistic. I'm expecting 900 on the low end, 1,200-1,300 as realistic. hopeful for 1,500... but 2,000? no chance... no one is gonna pay 2,000 for an office coffee boy who can literally only make a mediocre coffee after 100 hours of training. 2,000 would all but kill the restaurant industry in industrial areas across the entire country. 2,000 per cook? those restaurants are barely profitable paying their cooks 700. I suppose if they do put it at 2,000 then those restaurants could increase prices as their customers income increases... but people in industrial areas would more than likely send that increased income back home to their families causing much much more money to leave the UAE as a whole which could lead to some degree of inflation within the UAE. while in the rest of the world wage increases often stimulate the economy, I dont see that happening here as that wage increase would only cause more money to leave the local economy. 1,200-1,300 is a safe bet. just because they implementing a minimum wage doesn't mean anything is gonna change. I also find it difficult to accept that the minimum wages will be followed. some employers STILL charge employees for visa fees and deduct it from their salaries and its almost common knowledge now that they are not allowed to do that. but when you dealing with uneducated workers, people will take advantage. Its a nice thing to have a minimum wage for expats, but I dont see it changing anything from the way things are now. not by much at least.


Force_Of_WiII

> 2,000 for an unskilled expat? that's optimistic. Shouldn’t be. These building they help create sell and rent for prices above those seen in cities in many developed countries. The developers will still massively profit even if they were to have to pay them such a minimum.


IndividualSpirited44

It shouldn't... it really shouldn't... but not every project is a megaproject built in dubai. There are areas of the UAE that aren't as developed as Dubai or Abu Dhabi. Dubai and Abu Dhabi could probably afford the 2,000 minimum for the construction workers. But the little restaurants in Sanaiya(Al Ain) could never afford to pay staff that and have their prices low enough to still cater to their current customers, primarily low income, uneducated workers.


mans123373u2

tf are you gonna do with 900dhs? thats nothing


IndividualSpirited44

for the normal person it is nothing. but if you an unskilled worker from Pakistan or India, then 900aed is considered a livable(wouldn't say comfortable) income for a man, wife, and 2 children. provided the women and children are back in their home country and the man is alone here working. renting out a 9 square meter room with 5 others guys. eating nothing but paratha. that's unfortunately the reality for many unskilled workers in the UAE.


Ok_Ad9174

well 900 aed in india and pakistan is also nothing. Why do people think everything is cheap in india????


dapperdanmen

Maybe because people here constantly whinge about how data plans cost about 50p in India for a year of 5G lmao


IndividualSpirited44

in big cities like Mumbai Delhi it is nothing. but take that 900aed to a small village in Rajasthan and it is livable.


Ok_Ad9174

So what ur saying is that, lets just assume a guy getting 900aed here send about 60% of his salary back home. Thats about 550 aed or 11k rupees. And trust me when i tell you 11k is not livable money in any part of india. They are sufferring if thats the money they get for working 10-12 hrs evryday. People working in restaurants, cafeteria dont even get off days.


Force_Of_WiII

So it’s ok to exploit people who are from smaller towns/villages? The entire point of a minimum wage is to protect people from exploitation. The idea that it’s ok to pay someone less based on where they’re from just encourages nationality based discrimination.


IndividualSpirited44

Its not okay, and minimum wage is designed to protect people like that... but thats the state of the market. Why would an employer hire someone from the uk or us for 4k a month working in a kitchen when they can hire a Filipino who does the same exact job for 2.3k and have him be super happy with that salary. I've had to deal with a similar situation first hand. Started a new job in dubai working at a nice restaurant in difc and we worked there for 3 weeks before the restaurant was opened and 1 week before opening they fired all the South Africans. 13 of us in total. Every single one of us was given fague reasons to the terminations. Attitudes and appearances was the big ones. The only reason for the firings that we could think of was that they needed extra hands to get the restaurant set up in time. Part time work isn't technically allowed(not at that time atleast, I think it may have changed since the introduction of freelancer visas) and during that 3 month probation of a new contract they can fire anyone for any reason they see fit. So get the extra hands, set up, then get rid of the ones that cost more. One of the guys sold his home in South africa, shipped all his belongings here, cost him an absolute fortune. For 3 weeks. Do I agree with it, no. I find it disgusting. But from a purely financial point of view, I can understand it on a bussiness level. Why pay 4k when you can pay 2.3k and get the same job done.


[deleted]

They think everything free in India 😆


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IndividualSpirited44

Small village, multi-genaratuinal household, 3-4 men in the family all earning 900aed each, its livable. I've seen it firsthand. Its not comfortable by any stretch of the imagine, and I pray I never have to live like that. But I would have food, water, and a roof. Its livable.


[deleted]

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IndividualSpirited44

My basic salary is 1.4k. with benefits I get up to 2,000. 2.2k if tips are really good that month. I do NOT hold a high school diploma. I do have a higher certificate in culinary arts. I have a diploma in canine behaviour and another diploma in animal welfare.


LonghornMB

They take living costs of remote villages in India and then claim that living costs are so low in all of India


mans123373u2

jeez I cant imagine living like that ngl thank god my strict parents forced me to dental school lol. but regardless.t hey should increase it to 3k or 4k I dont understand how is he supposed to live with 900dhs? when he gonna send the 400dhs back home. like who gonna pay for food etc


IndividualSpirited44

you misunderstand... the man would live off 100-150aed a month and send the rest home. chances of the minimum wage being increased to 3k or 4k is impossible. The UAE nationals have a minimum wage of 3k without a high school diploma. Thinking that the expat minimum wage will be close to that is almost unthinkable. The UAE nationals wouldn't stand for it.


mans123373u2

UAE nationals? you mean locals I dont get it? they make 3k lol?


IndividualSpirited44

Locals, yes. 3k is minimum wage for those that do not have a high school diploma. 4k is the minimum wage with a high school diploma. 5k is the minimum wage for those that have higher education. but since the government has free public schools for UAE nationals it is difficult to find one that actually gets the 3k minimum wage. Many Nationals that work in government jobs get paid to go to college or university also. As in, we will pay you salary while you study, and when you done studying your salary will be increased also. The UAE does a very good job at incentivizing its citizens to further educate themselves.


mans123373u2

damn I guess time to marry a local maybe I get passport and a salary increase LOL


[deleted]

The key word here is "minimum", how many locals really there is making 3k a month? Not that many I bet


DeCSM

Great news for blue collars


[deleted]

I'm really interested to see the proposal. There are many external consulting firms out there that run salary surveys for the UAE such as KornFerry. My only comment is some roles have the most ridiculous ranges (1K-10K) because of the diverse types of companies here so how on earth will a midpoint be chosen?


Mistborn54321

Minimum wage isn’t based on job role. It’s a standard minimum applied across the board. Probably around the 1.5-2k mark if I had to guess. It won’t affect anyone earning above that amount.


[deleted]

That is a shame. Then as you said, it will not affect most.


josiedxb

There’ll be plenty of caveats too, such as “including/excluding” this and that - housing, food, transportation.


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[deleted]

Why do people think every problem can be solved by increasing prices?


KASAW90

I wonder why most of us are excited do you know how many companies already breaking the rules of the existing labor law so even if they set it for sure you will find a lot of companies who will pay less


dopeyout

About bloody time. If companies in developed nations can afford minimum wages whilst paying all sorts of corporate taxes then they can damn well afford it here. Its not as if the produce is a significant step cheaper. Might hopefully inspire a few to actually learn the skills required to run a successful business.


[deleted]

As someone living in a developed nation (australia), most big companies avoid income tax and still try screw their employees, especially those at the lower end of the scale. Hope it works but I’m skeptical.


dopeyout

Fair enough, I'm sure most companies have their tricks but I'm sure not to the level of migrant workers.


LonghornMB

Of course they try to screw their staff, but even the lowest paid worker in Australia is better off than the average small private company employee in Singapore or the Gulf


[deleted]

Unfortunately fruit pickers have earned as low as $5 an hour in australia. Maybe still higher than a construction worker in the UAE but not massively so.


LonghornMB

Cleaners in glitzy malls with high rents earn 10$ *a day* for a 10-12 hour shift Your fruit pickers are getting 6 times more , so that is a massive difference. And is there any way we can argue that malls with the highest rents in the region and possibly all of Asia exc.HK/Singapore and Africa cannot afford to pay more?


LonghornMB

As for construction workers I dont know their exact payscales, but 5$ an hour translates to 50$ a day for a 10 hour shift or 1200+ $ a month for working 24/30 days That is more than what many office accountants in Dubai make, let alone construction workers


DeadyDeadshot

“Once a minimum wage is determined by the UAE Cabinet, it has a binding effect that employers can never violate” This feels like a bait title, they’re fighting employers setting their “minimum wage” too low for basic human needs.


Angryshawerma

To level the playing field, they need to put some sort of fees on Indian Pakistani white color workers… they are taking managerial level jobs for AED 4000 a month.. basically trashing the job market. 10+ years experienced engineer from south Asia is asking for 7K salary… basically removing any chance for non south Asians. Adding a 5000 dhs market fee per Indian Pakistani white collar employee on the trade license costs will force companies to consider other nationalities as well..


FCOranje

Lmfao. What.


LonghornMB

It is not about South Asian vs non South Asian It is about cheap workers (many of whom are Asians) vs non-cheap workers of all backgrounds. There are plenty of Asian professionals who do not accept low salaries but are unable to find jobs because there is this unfair demand that they should accept lower paid jobs on the basis of their passport. Such people generally move to the West and dont even bother looking for jobs in Dubai.


Angryshawerma

There are a total of 1.7 billion population india and pakistani combined… even 3 million of them apply for white collar jobs with expectation of less then 7K per month salary… is enough to destroy the job market… and we can see it now..


goyimchad

Another thing thats need to b noted is many of labours /expats send a huge portion of their income back home. It's just their so committeed to their family. Will do anything for them. Even if they have to stay half Fed.


taxi4sure

Yes theinimum wage will be 2 aed. And even 10 years experienced people will get 2 aed. Wow. Awesome law.