UAE Salary Calculator — Take-Home & Cost to Employer 2026
Work out UAE take-home pay from basic salary and allowances with no income tax, GPSSA pension for nationals, the ILOE premium, end-of-service accrual and the true annual cost to the employer.
| Gross monthly salary | — |
|---|---|
| Income tax | — |
| Pension (GPSSA) | — |
| ILOE unemployment insurance | — |
| Take-home: month / year | — |
| End-of-service accrual | — |
| Total package (incl. bonus & EOSB) | — |
| Employer pension & subsidies | — |
| Cost to employer per year | — |
| Basic as % of total | — |
In short
The UAE has no income tax, so take-home pay is gross salary minus the ILOE unemployment-insurance premium (AED 5 a month if basic is AED 16,000 or less, AED 10 above) and, for UAE nationals only, the GPSSA pension contribution — 11% under Federal Decree-Law 57/2023 for first-time registrants from 31 October 2023 or 5% under the 1999 law. An expatriate on AED 19,500 a month takes home AED 19,495; end-of-service accrues at 21 days of basic a year for the first five years and 30 days after.
Who this is for: Anyone negotiating or comparing a UAE job offer, HR teams costing a hire, and UAE nationals checking the GPSSA deduction.
What comes out of a UAE salary — and what it costs the employer
The UAE has no personal income tax, so for an expatriate the monthly take-home is simply the gross salary less the ILOE unemployment-insurance premium (AED 5 a month if basic is AED 16,000 or less, AED 10 above). UAE nationals additionally contribute to the GPSSA pension: 11% of contribution salary under Federal Decree-Law 57/2023 if they first registered from 31 October 2023 (employer 15%, with the government paying 2.5 points of it for salaries under AED 20,000), or 5% under Law 7/1999 for earlier registrants (employer 12.5% + government 2.5%).
- Basic vs allowances: the contract splits salary into basic and allowances (housing, transport). Gratuity, overtime, ILOE category, pension base and most visa salary thresholds are driven by the basic figure, which is why employers keep it at 50–60% of gross.
- End of service: 21 days of basic per year for the first five years, 30 days after — an accrual of 5.8% of basic rising to 8.3%. It is part of your real compensation even though it is paid only when you leave.
- Cost to employer: salary + bonus + EOSB accrual + employer pension (nationals) + medical insurance (mandatory in Dubai and Abu Dhabi) + visa, Emirates ID and work-permit fees (typically AED 5,000–8,000 every two years for mainland employees).
- WPS: salaries must be paid through the Wage Protection System; late or partial payment triggers MOHRE fines and work-permit blocks.
Assumptions
- Gross = basic + housing + transport + other allowances; no income tax; ILOE AED 5 (basic ≤ 16,000) or AED 10 a month paid by the employee.
- GPSSA: new law 11% employee / 15% employer (2.5 points government-subsidised below AED 20,000) on contribution salary AED 3,000–70,000; old law 5% / 12.5% + 2.5% government up to AED 50,000; expats nil.
- End-of-service accrual = basic ÷ 30 × 21 days (years 1–5) or 30 days (after); cost to employer = salary + bonus + EOSB accrual + employer pension + medical + half the two-year visa cost.
Worked example
Gross AED 19,500 a month. No income tax; no pension; ILOE AED 5 (basic ≤ 16,000) → take-home AED 19,495 a month, AED 233,940 a year. End-of-service accrues at 21 days of basic = AED 8,400 a year (AED 12,000 a year after year 5). With AED 4,000 medical cover and AED 7,000 of visa costs every two years, the employer's annual cost is 234,000 + 8,400 + 4,000 + 3,500 = AED 249,900. Basic is 62% of gross.
Frequently asked questions
Is there income tax on salary in the UAE?
No. There is no personal income tax, no social security deduction for expatriates and no tax on bonuses or allowances; the only mandatory deduction is the ILOE premium (AED 5–10 a month).
What is a good salary in Dubai?
Single professionals commonly target AED 15,000–25,000 a month; a family with two children in private school and a villa or large apartment typically needs AED 35,000–50,000. Use the cost-of-living calculator to build your own budget.
How is take-home different for UAE nationals?
Emiratis contribute to the GPSSA pension: 11% of contribution salary (AED 3,000–70,000) if first registered from 31 October 2023, or 5% (up to AED 50,000) under the 1999 law; the employer pays 15% or 12.5% on top.
What percentage of salary should basic be?
The law sets no minimum, but most employers keep basic at 50–60% of gross because gratuity, overtime and pension are calculated on basic; some visa and bank thresholds also look at basic.
Can my employer deduct from my salary?
Only for specific reasons in the Labour Law — agreed loans, unpaid absence, damage caused deliberately, court orders, pension — and total deductions cannot exceed 50% of wages; fines must follow an approved schedule.
Is the ILOE deduction mandatory?
Yes for private-sector and federal employees (with limited exceptions); the AED 5 or 10 monthly premium is paid by the employee and covers 60% of basic salary for up to three months after involuntary job loss.
How do I calculate my monthly salary in the UAE?
Add basic and allowances — that is your gross and, with no income tax, almost your take-home; subtract AED 5–10 ILOE and, for UAE nationals, the GPSSA contribution. Divide an annual package by 12 and remember gratuity and bonus are paid separately.
What is the minimum salary in the UAE?
There is no statutory minimum wage for expatriates; thresholds that matter are AED 4,000 for family sponsorship (AED 3,000 plus accommodation) and the salary bands on visa applications.
People also ask
Is there income tax on salary in the UAE?
No — the UAE has no personal income tax, so take-home equals gross salary less the ILOE premium (AED 5 or 10 a month) and, for UAE nationals only, the GPSSA pension contribution.
What is a good salary in Dubai?
AED 15,000–25,000 a month supports a single professional comfortably; a family renting a two-bedroom and paying school fees typically needs AED 30,000+ — see the cost of living calculator.
What percentage of salary should basic be in the UAE?
There is no legal minimum, but 50–60% is common; a low basic cuts gratuity, overtime and leave pay, so negotiate the split as well as the total.
What deductions come off salary in the UAE?
For expats only the ILOE unemployment-insurance premium; employers cannot deduct visa or recruitment costs. UAE nationals contribute 11% (new law) or 5% to GPSSA.
Is salary paid monthly in the UAE?
Yes, through the Wage Protection System; salaries must be paid within 15 days of the due date or the employer faces penalties.
What is CTC in the UAE?
Cost to company — salary plus gratuity accrual, medical insurance, visa and Emirates ID costs and, for nationals, employer pension; typically 10–15% above gross.
Is there a minimum wage in the UAE?
No general minimum for expats; family-visa sponsorship needs AED 4,000 (or AED 3,000 plus accommodation) and some free zones set floors.
Is overtime included in salary?
Only when worked: 125% of basic hourly pay for extra hours and 150% at night, up to two hours a day — see the overtime calculator.
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