UAE Residents: “No Sales, No Salary” — The Dependence on Commission Over Fixed Pay

In the UAE, many residents are employed under commission-only contracts, a practice that, while legal, exposes them to significant financial instability.

Workers in sectors such as real estate, retail, and banking often find themselves navigating a precarious income landscape, where earnings fluctuate dramatically based on sales performance.

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Aisha M., a 29-year-old real estate broker in Dubai, shared her struggle with inconsistent income. “Some months, I earn far more than a salaried employee, but other months, I can’t even pay my rent,” she explained. Without a base salary, her financial situation hinges entirely on closing deals.

The UAE’s Federal Decree-Law No. 33 of 2021 permits commission-based pay as long as it is clearly outlined in an employee’s registered contract with the Ministry of Human Resources and Emiratisation (MoHRE).

However, the law does not specify a minimum wage, leaving workers vulnerable during slow sales periods.

Tariq Mahmoud, who works in electronics retail on a commission-only basis, described the pressures of his role. “If I don’t make a sale, I go home with nothing.

My wife’s fixed salary is the only reason we manage to get by,” he said, highlighting the mental toll of living paycheck to paycheck.

Many workers, like Noura, who transitioned from real estate to banking sales, emphasize the importance of trusting the employer before accepting commission-based roles.

“It’s crucial to know how the payment structure works and whether you can rely on timely payments,” she advised.

As the trend of commission-based employment continues, UAE residents are left grappling with the challenges of financial uncertainty and the need for clearer regulations regarding pay structures.

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