Employer cost and take-home pay calculator
Enter the package. You get the monthly cost to the employer, your first invoice and every month after, and what the employee takes home. Pay monthly, or the year upfront for less. Partner EORs can switch to their own view and see the margin.
Monthly cost to you
AED 25,855
1.15 times the gross salary. Plus AED 1,293 VAT, recoverable for UAE VAT-registered companies.
Employee takes home
AED 22,495
Every month. No income tax in the UAE.
First invoice
AED 61,817
Every month after
AED 25,538
| Gross salaryBasic AED 13,500 + allowances AED 9,000 | AED 22,500 |
|---|---|
| End-of-service gratuity, set aside monthly21 days of basic salary per year of service | AED 788 |
| Health insuranceest.AED 3,500 a year per person | AED 292 |
| Service fee on the health insuranceAED 300 a year per person insured; the premium stays at cost | AED 25 |
| Employer of Record fee | AED 2,000 |
| Emiratisation shareEveryone we employ is on our MOHRE file, so our Emiratisation target grows with each hire | AED 250 |
| Monthly cost | AED 25,855 |
| Deposit: one month of employment costrefundableHeld while the person works with us, returned at the end | AED 25,855 |
|---|---|
| Health insurance for the yearest.AED 3,500 a person, at cost | AED 3,500 |
| Service fee on the health insurance, for the year | AED 300 |
| Work permit, visa, medical and Emirates IDGovernment fees at cost, valid 2 years | AED 2,874 |
| Service fee on the visaOur fee to handle it start to finish | AED 850 |
| Arrival package: airport, temporary home, bank, first weeks | AED 2,900 |
| The first month's salary and monthly items | AED 25,538 |
| First invoice | AED 61,817 |
Plus AED 1,798 VAT. The deposit carries no VAT and comes back at the end. Health insurance is bought for the year, so neither is on the monthly invoices after this.
| Gross salaryBasic AED 13,500 + allowances AED 9,000 | AED 22,500 |
|---|---|
| End-of-service gratuity, set aside monthly21 days of basic salary per year of service | AED 788 |
| Employer of Record fee | AED 2,000 |
| Emiratisation shareEveryone we employ is on our MOHRE file, so our Emiratisation target grows with each hire | AED 250 |
| Monthly invoice | AED 25,538 |
Plus AED 1,277 VAT. Pay the year upfront and save AED 4,800 on our fee. The visa renews every 2 years; year two estimate, all in: AED 311,697.
From gross salary to take-home
| Gross salary | AED 22,500 |
|---|---|
| Unemployment insurance (ILOE)Paid by the employee to the ILOE scheme, not through payroll | −AED 5 |
| Income tax | AED 0 |
| Take-home | AED 22,495 |
What each part changes, by law
UAE law doesn't set how much of the package is basic. It ties some things to the basic salary and others to the whole salary, so the split changes what the employee is owed.
Tied to the basic salary, AED 13,500
- End-of-service gratuityAED 9,450 for each of the first five years, then AED 13,500 a year.
21 days of basic salary for each of the first five years, 30 days for each year after. Allowances don't count. A day is the basic divided by 30. Source: u.ae
- OvertimeAt least AED 70 an hour, AED 84 at night.
Paid on the basic wage plus at least 25%, or at least 50% between 10 pm and 4 am. Source: u.ae
- Job loss insurance (ILOE)Category A, AED 5 a month.
The category follows the basic salary: up to AED 16,000 is category A, above is category B. Source: u.ae
Tied to the whole monthly salary, AED 22,500
- Sponsoring familyCan sponsor a spouse and children.
A monthly salary of at least AED 4,000, or AED 3,000 with accommodation provided. Source: u.ae
- Green Visa, skilled employeeThe salary meets the line. The other conditions still apply.
A monthly salary of at least AED 15,000, with a bachelor's degree and a job at MOHRE skill level 1 to 3. Source: ICP
- Golden Visa, skilled professionalThe salary is below the line.
A monthly salary of at least AED 30,000, with a bachelor's degree and a job at MOHRE skill level 1 or 2. Source: ICP
- There is no personal income tax in the UAE. Take-home pay is gross salary minus the items listed.
- Gratuity is worked out on basic salary only. In our experience a basic of 50 to 60% of the package is common.
- UAE VAT at 5% applies to the whole EOR invoice, salaries included. UAE VAT-registered clients can usually recover it.
How this is worked out
The same rules and fee tables run our real quotes. When a fee changes we update one file and every tool follows.
Every month
- Gross salary: basic plus housing, transport and other allowances, paid through WPS by the 1st of the following month.
- Gratuity provision: 21 days of basic salary per year of service for the first five years, which is 5.83% of basic a month. After five years it rises to 30 days, or 8.33%. Expats only.
- Pension for Emirati staff: 11% from the employee and 15% from the employer under the 2023 GPSSA law. Below a contribution salary of AED 20,000 the government pays 2.5 points of the employer’s share, so the employer pays 12.5%. The contribution salary is floored at AED 3,000 and capped at AED 70,000.
- Health insurance: mandatory for every employee in all seven emirates, and paid by the employer: Abu Dhabi since 2006, Dubai since 2014 to 2016, and the other five emirates since 1 January 2025, when a visa is issued or renewed. In Abu Dhabi the employer also covers one spouse and up to three children under 18 who hold an Abu Dhabi visa.
- Our fee, per employee per month. VAT at 5% applies to the whole invoice and is shown separately.
Once, at the start
- MOHRE work permit: a AED 50 application plus AED 1,200 for a category 2 employer, valid two years.
- Worker protection insurance of AED 137.50 per skilled worker, used instead of a AED 3,000 bank guarantee.
- Entry permit, or AED 500 for a change of status when the hire is already in the UAE.
- Medical fitness test (AED 270 at DHA in Dubai), Emirates ID and the residence visa.
- The arrival package, if you want us at the airport and beside them for the first weeks.
Take-home pay
There is no income tax. Emirati staff pay 11% into GPSSA through payroll. Every employee pays their own unemployment insurance (ILOE), AED 5 a month on a basic up to AED 16,000 and AED 10 above, plus VAT. Some employers cover it as a perk.
Sources
- Federal Decree-Law No. 33 of 2021 on Labour Relations, as amended by Federal Decree-Law No. 9 of 2024 Official · checked 4 Nov 2026
- End-of-service benefits, Article 51 of the Labour Law (u.ae) Official · checked 4 Nov 2026
- GPSSA contributions under Federal Law No. 57 of 2023: 26% (employee 11%, employer 15%), with the government paying 2.5 points of the employer share below AED 20,000 Official · checked 4 Nov 2026
- Health insurance: Abu Dhabi Law No. 23 of 2005 (DoH), Dubai Law No. 11 of 2013 (DHA), and MOHRE’s basic scheme in the other five emirates from 1 January 2025 (AED 320 a year, sold as a two-year policy). Plans above the minimum are market quotes Official, varies by case · checked 4 Nov 2026
- Involuntary Loss of Employment (ILOE) scheme Official · checked 4 Nov 2026
- MOHRE work permit fees by establishment category, and service centre commission cap Official · checked 4 Nov 2026
- Insurance system for private sector employees: AED 137.50 per skilled worker, instead of a AED 3,000 bank guarantee (Ministerial Resolution 318 of 2022) Official · checked 4 Nov 2026
- GDRFA Dubai residence and entry permit fees Official · checked 4 Nov 2026
- Medical fitness fees in Dubai: DHA, Administrative Resolution 66 of 2021 Official · checked 4 Nov 2026
- Medical fitness fees outside Dubai: EHS (Cabinet Resolution 4 of 2025) Official · checked 4 Nov 2026
- FTA Public Clarification VATP038 on manpower supplies (VAT on the full invoice, salaries included) Official · checked 4 Nov 2026
- Our prices Official · checked 4 Nov 2026
Questions we get asked
Something else? Ask us directly. A person answers, usually the same working day.
What does "cost to company" mean in the UAE?
It is everything the employer spends on one person in a year: salary, gratuity provision, health insurance, visa and permit fees, pension for Emirati and GCC staff, and any flights or bonus. For an expat on a typical package, gratuity and insurance add about 5% to the gross salary in our model, plus the one-off visa costs. Flights, bonuses and family cover push it higher.
Do employers pay social security for expats?
No. Pension contributions apply to UAE and GCC nationals only. For expats the long-term cost is the end-of-service gratuity, which is why we set it aside every month.
Why does the basic salary matter so much?
Because the law ties some things to the basic salary only. Gratuity and overtime are worked out on the basic, not the full package, and the job loss insurance category follows the basic too. Family sponsorship and the Green and Golden Visa thresholds look at the whole monthly salary. UAE law does not set the split itself. The calculator uses a common one, 60% basic, 30% housing and 10% transport, and you can set each part yourself.
Is VAT added on top?
Yes. The Federal Tax Authority treats an EOR invoice as a supply of staff, so 5% VAT applies to the full amount, salaries included. If your company is VAT-registered in the UAE you can usually recover it. Foreign companies should ask us; the treatment depends on the setup.
What is not in this estimate?
Recruitment fees, salary increases, overtime, unused leave paid out at the end, notice-period pay and any end-of-contract costs. Emiratisation is in it, as its own line: everyone we employ is on our MOHRE file, so our Emiratisation target grows with each hire, and that line is your share of it.
Tell us who you’re hiring.
Role, salary, nationality and whether the family is coming. We reply with an itemised cost and a realistic start date, usually within one working day.