UAE employer cost calculator
Hiring in the UAE costs more than the salary. For Emiratis, the employer pays a pension contribution. For expatriates, it builds up an end-of-service gratuity.
Enter the salary and the employee's details to see the yearly cost.
How it's calculated
- Salary for the year is the monthly salary times 12.
- For an Emirati, add the employer's GPSSA contribution of 12.5% of the salary.
- For an expatriate, add the gratuity earned in the year: 21 days of basic salary in the first five years and 30 days after.
- Add any other yearly costs such as visas, insurance or flights.
An example
An expatriate on AED 15,000 a month with AED 9,000 basic costs AED 180,000 in salary plus AED 6,300 of gratuity a year in the first five years.
Frequently asked questions
Does an employer pay pension for expatriates?
The GPSSA contribution described by MoHRE is for Emiratis. For foreign full-time workers, the Labour Law sets an end-of-service gratuity instead.
Is gratuity worked out on the full salary?
No, on the basic wage, without allowances.
Is there an alternative to the gratuity?
Yes. Under the voluntary Savings Scheme, an employer pays a monthly contribution to an approved investment fund instead.
Key terms
- Gratuity provision
- The part of the end-of-service gratuity the employee earns in a year.
- Basic salary
- The salary before allowances such as housing or transport.
The same calculation in other countries
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
- UAE Government portal (u.ae)Emiratis' employment in the private sector (text provided by MoHRE)
- UAE LegislationsFederal Decree by Law No. 33 of 2021 Concerning Regulating Labour Relations