Contracts, payslips and your rights

The number you are offered is not always the number that reaches your account. Understanding your contract and your payslip means you can spot mistakes, ask the right questions and keep proof of what you earned.

Gross pay and net pay

• Gross pay is what you earn before anything is taken off. Net pay (take-home pay) is what you receive after deductions.
• Example: 10 hours at GBP 8 an hour is GBP 80 gross. If nothing is deducted, your net pay is also GBP 80.
• Always budget with net pay, because that is the money you can actually spend.
• If net pay is lower than you expected, ask what each deduction is for. You have a right to understand your own pay.

Tax in the UAE

• The UAE government portal states that the UAE does not levy income tax on individuals. Your wages from a job are therefore not taxed as income.
• The UAE does charge 5 per cent VAT on most purchases of goods and services, which you pay as a consumer.
• UAE Corporate Tax can apply to an individual who runs a business, but only if their business turnover exceeds AED 1 million in a calendar year. The Federal Tax Authority says wages are not treated as business income.
• Tax rules can change. If you start earning seriously from a business, check tax.gov.ae or speak to a qualified adviser.

Tax abroad: the UK as an example

• In the UK, the standard Personal Allowance for 2026 to 2027 is GBP 12,570: you pay no Income Tax on earnings up to that amount. Basic rate tax is 20 per cent on income from GBP 12,571 to GBP 50,270.
• Employers usually take Income Tax and National Insurance from wages automatically through PAYE (Pay As You Earn).
• Employees aged 16 or over pay National Insurance if they earn more than GBP 242 a week from one job. Children under 16 do not pay National Insurance.
• Worked example: a 17-year-old earns GBP 8 an hour for 10 hours a week. That is GBP 80 a week, below the GBP 242 National Insurance threshold, and GBP 4,160 over 52 weeks, below the GBP 12,570 Personal Allowance. If this is their only income, they would normally pay no Income Tax or National Insurance.
• If too much tax is taken, for example because you stop working partway through the tax year, you may be able to claim a refund.

Before you sign a contract

• In the UAE, a juvenile or student work permit needs a MOHRE-approved contract signed by both you and the employer. Ask for your own copy.
• UAE student employment contracts must set out the nature of the work, its duration, the wage, the weekly day off and the number of daily working hours.
• In the UK, employers must give a written statement on your first day covering at least pay, how often you are paid, hours and days, holiday, job title, start date and place of work.
• Check: does the hourly rate match what you were told? Are hours and breaks written down? Is there a probation or notice period? Who do you contact if there is a problem?
• Never sign something you have not read or do not understand. Take it home and read it with a parent or guardian.

Payslips and records

• In the UK, your employer must give you a payslip showing your earnings before and after deductions, any variable deductions such as tax and National Insurance, and your hours if your pay depends on time worked.
• Keep a simple log of every shift: date, start time, end time and break. Compare it with each payslip.
• Save every payslip and contract in a folder on your phone or computer, plus a cloud backup.
• If something is wrong, raise it politely in writing (an email or message) with the date, the hours you worked and the amount you expected.