
How to Set Founder Pay Without Starving the Business
By Kitaab on July 28, 2025
Where do I draw the line between founder and employee, especially when you’re still the intern, the CTO, the cleaner, and occasionally, the company’s emotional support animal.
You’re building from a shared office where the AC barely works in 45°C heat, running on karak and ambition. You are the business. So it’s no wonder founder pay feels complicated. Let's talk about it.
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Learn moreWhy Skipping Founder Pay Is Hurting More Than Helping
Startup culture has romanticized the “all-in” founder, the one living on instant noodles, sleeping on beanbags, and deferring every paycheck until Series A.
Of course it makes great Twitter threads!
But in reality, it burns out smart people and quietly starves the business. If your company isn’t profitable enough to offer reasonable founder pay, something has to change. It’s a business. And businesses have to pay their people; starting with their founders.
That doesn’t mean paying yourself a huge salary from Day 1. But even if you’re taking zero founder pay during early validation or bootstrapping, that phase needs a timeline. Six months? Nine? Decide your limit and build your personal runway accordingly.
How to Structure Founder Pay in the UAE
This is the part nobody teaches you. So how do you actually decide what founder pay should look like without draining the business or driving yourself into burnout? It starts with asking the right questions. Let’s discuss:
1. What do I need to stay focused and not frantic? This isn’t about founder “norms.” It’s about what lets you think clearly and make smart decisions. Founder pay is as much about mental clarity as financial structure.
2. How long is my personal runway? Can you last 3, 6, or 12 months without a salary? That defines how lean your founder pay can go in the early stages.
3. What does my business model allow right now? If paying yourself risks hiring or delivery, it’s time to revisit your pricing, costs, or setup.
4. How do I benchmark this responsibly? A common rule of thumb: your salary shouldn’t be more than 1.5 to 2× your next highest-paid team member.
But keep in mind that no two businesses are the same. A solo digital agency can run lean with a laptop and a few subscriptions. A bakery, on the other hand, has fixed costs: ingredients, equipment, staff, and a storefront. What’s “affordable” looks very different. And what works this year might not work next. Markets evolve, and expenses rise. Founders who stay financially self-aware adapt faster and make sharper decisions. The point isn’t to pay yourself the most. It’s to pay yourself intentionally based on your role, model, and stage demands.
What Should a Founder Salary Actually Cover?
Before setting a number, take a breath and ask: “What’s the minimum I need to not starve myself or the business?” Here’s what UAE-based founders typically factor in:
Cost of living, depending on where you're based—Dubai, Sharjah, or even remote from India or Sri Lanka
UAE's tax-free income structure, which means your net salary stretches farther
Stage of business – pre-revenue, early clients, or scaling?
Funding available – bootstrapped vs VC-backed
Your role – are you wearing every hat or just the strategic ones?
What’s a Reasonable Founder Pay in the UAE?
Here’s a UAE-specific salary range to help you calibrate:
Stage | Monthly Founder Salary (AED) |
Pre-Revenue / Bootstrapped | 0 – 5,000 |
Pre-Seed / Friends & Family | 5,000 – 10,000 |
Seed / Early Revenue | 10,000 – 20,000 |
Series A / Growth | 20,000 – 35,000+ |
This isn't a target; it's a reference. Use it to calibrate what’s healthy founder pay, not to compete with other founders.
Why Ignoring Founder Pay Starves Your Business
Skipping founder pay might make you feel responsible in the short term, but it often leads to long-term damage. When founders don’t pay themselves, they tend to undercharge, delay hires, and stay stuck in operational overwhelm because they can’t afford to delegate. That’s how businesses stall. And eventually, the founders burn out. Consider paying yourself as a business decision rather than a reward. It allows you to operate from stability and focus on what really grows the company.
So How Do You Actually Pay Yourself in the UAE?
Here’s a simple breakdown to help you set up founder payroll in a way that’s clean, compliant, and sustainable:
UAE Founder Payroll Options:
Fixed Monthly Salary: Set up via WPS (Wage Protection System) like any other employee. Required for most Free Zone setups and useful for personal loan/visa documentation.
Founder Draws or Dividends: Depends on your legal structure. May work for mainland or certain free zones but can be unpredictable and not ideal for consistent income.
Hybrid Model: A modest base salary + performance-based quarterly bonus. Offers flexibility without sacrificing financial structure.
If you’re in a Free Zone, check that your license allows official salary disbursal and payroll documentation. Some zones limit remittances or salary setups based on visa types.
Don’t Starve the Business by Starving Yourself
Building a startup in the UAE is no small feat. There are tax changes, visa rules, investor expectations, and new compliance layers to navigate. But if you want to build something real, sustainable, and scalable, you need to treat yourself like the asset you are. That means paying yourself a fair, justified, and well-structured salary.