Real estate brokerage, insurance sales, recruitment — plenty of UAE offers come with no basic salary at all, just commission. Perfectly legal, and for strong salespeople sometimes very lucrative. But your protections depend almost entirely on what the written contract says, so here is what the law requires and what to check before signing.
Yes, it is legal — with conditions
Commission-only and performance-based structures are recognised under Federal Decree-Law No. 33 of 2021, subject to MOHRE approval. The non-negotiable: a written contract, in duplicate, that clearly specifies:
- The remuneration structure and how commission is calculated
- Performance criteria and payment intervals
- Basic wage, if any
- The standard particulars — parties, qualifications, working hours, leave, termination procedures
If the commission formula lives in a verbal promise or a WhatsApp message, you have no formula.
Gratuity without a salary?
You still earn end-of-service benefits. The mechanics:
- If a basic wage is specified, gratuity follows the standard rule — 21 days' wages per year for the first five years, 30 days after — calculated on that basic wage, not on commissions.
- If there is no basic wage at all, Article 23 applies the piecemeal-work rule: gratuity is calculated on your average earnings over the six months before termination.
That second rule matters enormously: a strong final six months lifts your entire gratuity, and a weak one drags it down. Run the numbers with our gratuity calculation guide.
Benefits are negotiable — then binding
Housing allowance, transport, annual flights, medical insurance beyond the mandatory minimum, a car, phone or education allowance: all negotiable in commission roles, and binding once written into the contract. Anything not written in does not exist.
Before signing, sanity-check the earning claims too. "Our agents make Dh50,000 a month" is a recruitment pitch, not a contract term — compare against our average salary data and ask to see the commission scheme in writing.
Key takeaway
Commission-only work is legal in the UAE, but everything rides on the written contract: the commission formula, payment intervals, and any benefits. Gratuity still accrues — on basic wage if one exists, otherwise on your last six months' average earnings.
FAQ
Is a commission-only contract legal in the UAE?
Yes, performance-based pay structures are permitted under the labour law, subject to MOHRE approval and a compliant written contract stating how commission is calculated and paid.
Do I get gratuity with no basic salary?
Yes. With no basic wage, gratuity is calculated on your average earnings over the six months before employment ends, under the piecemeal-work provision.
Do I still get annual leave and a labour card?
Yes. Commission-only employees are employees: working hours, leave entitlements and termination procedures must all appear in the contract like any other role.
What is the biggest red flag in a commission-only offer?
A vague or missing commission formula. If the contract does not state exactly how and when commission is calculated and paid, disputes become nearly impossible to win.
