Tuesday, 02 January 2024 12:17 GMT

'No Sales, No Salary': How UAE Residents Without Fixed Base Pay Rely On Commission


(MENAFN- Khaleej Times)

From real estate agents to retail staff and recruitment consultants, some UAE residents are employed under commission-only contracts . This practice, while legal in the country, often leaves these employees navigating financial uncertainty, unclear legal protections, and mental strain.

Aisha M, a 29-year-old real estate broker in Dubai, said her income varies so widely that budgeting feels almost impossible.“Some months, I make three times what a salaried person earns. Other months, I have to ask my landlord to wait for rent,” she said.“There's no base pay, so if I don't close a deal, I earn nothing.”

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Aisha explained that commissions are usually paid out in the first week of the following month, but even that depends on the employer's internal processes.“If I sell a unit in the last 10 days of July, I might not see the money until September. You have to be careful, always follow up.”

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Despite the instability, Aisha says she's not ready to give it up.“When it's good, it's very good. But you live in a kind of emotional and financial rollercoaster. Every month, it's like starting from zero.”
According to the UAE's Federal Decree-Law No. 33 of 2021, commission-based pay is legal if it's clearly stated in the employee's registered contract with the Ministry of Human Resources and Emiratisation (MOHRE). The law allows for various pay structures, including commission-only, provided they're mutually agreed upon and formally documented.
However, there is no officially defined minimum wage in the UAE. The law broadly states that pay must“meet the basic needs” of the worker, but does not set a numerical threshold.

'No sales, no salary'

Tariq Mahmoud, 35, works in electronics retail. He has a commission-only contract with a company that sells high-end appliances.“I spend 8 to 10 hours a day on the floor. If I don't make a sale, I go home with nothing. My wife has a fixed job, or else we wouldn't have survived.”

He points out that during low seasons, sales drop sharply.“Some months, I make just Dh500. There's no hourly wage, no overtime, and no safety net.”

The hardest part, he says, is how commission payments are delayed.“The commission is based on closed sales, but the company often takes time to process payments. If there's a return or customer complaint, they can even cut your pay retroactively.”

Still, he acknowledges the upside.“It keeps you hungry, sharp. If you're aggressive, you can outperform salaried colleagues. But there's a mental toll. You're always anxious about clients, numbers, the system.”

Noura, a 27-year-old resident of Dubai, works in banking sales now, pushing financial products and credit cards. Before that, she spent three years in real estate under a commission-only setup. She said her experience taught her that everything depends on the employer.

“In real estate, some months I worked hard but didn't get paid on time, or at all. Now, in banking, even though I'm still on commission, the structure is more formal. There's a payment schedule, clear reporting, and a fallback if something goes wrong.”

Noura said people often underestimate how risky commission-only roles can be.“You have to really trust the company before you accept this kind of job. Ask people who work there. If payments get delayed or if you're left chasing your commission every month, it affects your whole life.”

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Khaleej Times

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