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AE

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Salary Calculator

See your UAE take-home pay, how your package splits between basic and allowances, the GPSSA pension for nationals, and what your employer really pays — including gratuity.

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AED

Gratuity and pension are worked out from this.

AED
AED
AED

AED 20,000

Monthly take-home · AED 240,000 a year · no personal income tax in the UAE

ItemMonthlyYearly
Basic (60% of package)AED 12,000AED 144,000
AllowancesAED 8,000AED 96,000
Gross salaryAED 20,000AED 240,000
Take-home payAED 20,000AED 240,000

What your employer pays

Gross salaryAED 20,000
Gratuity building up each monthAED 700
Monthly cost to employerAED 20,700

Before visa, Emirates ID, medical insurance, annual leave and flights, which typically add several thousand dirhams a year.

Sources: Federal Decree-Law No. 57 of 2023 (pensions); Federal Decree-Law No. 33 of 2021 (gratuity).

How to use

Choose expatriate or UAE national, then enter your monthly basic salary and allowances as they appear in your offer letter or contract. You'll see your take-home pay, what share of the package is basic, and what your employer pays in total, including the gratuity or pension contributions that come on top.

No income tax — but the split still matters

With no personal income tax, a UAE salary looks simple: gross is what you receive. The details that change your money are elsewhere. Your end-of-service gratuity is calculated on basic salary alone, and so is overtime; allowances don't count towards either. Two offers with the same monthly total can be worth very different amounts when you leave.

Worked example: two AED 20,000 packages

  • Package A: AED 12,000 basic + allowances. After five years, gratuity is AED 42,000.
  • Package B: AED 7,000 basic + larger allowances. Same monthly pay, but gratuity after five years is only AED 24,500 — AED 17,500 less.

If an employer asks where you'd like the money, a higher basic is usually the better choice. Work out the full end-of-service figure with the gratuity calculator.

UAE nationals: GPSSA contributions

UAE nationals in the private sector contribute 11% of their contract wage to the General Pension and Social Security Authority, deducted by the employer. On AED 20,000 a month that's AED 2,200, leaving AED 17,800 take-home. The employer adds 15% on top — with the government covering 2.5% of it below AED 20,000 — so nationals don't receive a gratuity under the Labour Law.

Planning a home purchase? The mortgage eligibility calculator uses your gross monthly income, including allowances, against the Central Bank's limits.

Frequently asked questions

Is there income tax on salaries in the UAE?

No. The UAE doesn't tax employment income, so your gross salary is your take-home pay unless you're a UAE or GCC national paying pension contributions. Corporate tax (9% above AED 375,000) applies to businesses, not to employees' salaries.

What is a normal basic salary percentage in the UAE?

There's no legal minimum split, but basic salary is commonly 50–60% of the package, with the rest as housing, transport and other allowances. It matters because end-of-service gratuity is calculated on basic only: two packages of AED 20,000 a month, one with AED 12,000 basic and one with AED 7,000, produce gratuities of AED 42,000 and AED 24,500 after five years.

How much pension do UAE nationals pay?

In the private sector, 11% of the contract wage (between AED 3,000 and AED 70,000 a month) is deducted for GPSSA, and the employer pays 15% — the government covers 2.5% of that for nationals earning under AED 20,000. On AED 20,000 a month the deduction is AED 2,200. These rates apply to those who joined from 31 October 2023; Abu Dhabi nationals are covered by the Abu Dhabi Pension Fund.

Do expats pay into a pension?

Not a state pension. Expatriates instead receive an end-of-service gratuity when they leave, based on their basic salary and years of service. Some employers offer workplace savings schemes as an alternative, which the law allows.

What does an employee cost the employer?

The salary, plus the gratuity building up each month (or pension contributions for nationals), plus visa and Emirates ID fees, mandatory medical insurance, annual leave and often an annual flight. The calculator shows the first part; the rest varies by employer and emirate.

Is anything I enter sent anywhere?

No. The calculation runs in your browser.

Not financial advice

This tool provides estimates for general information only and is not financial, tax, or legal advice. Figures may not reflect the latest rules — verify with GPSSA, MOHRE, MoF, CBUAE, RERA and FTA before making decisions.
  • Everything you type or open here is processed by your own browser. It is not sent to us and we could not read it if we wanted to.
  • Formatted for United Arab Emirates (en-AE), in AED.

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