UAE Employee Cost Calculator
Salary is only part of what it costs to hire in the UAE. This tool estimates the full picture - gratuity, insurance, and visa costs included - so you're budgeting against reality.
What does an employee actually cost you?
Adjust the fields below to match your role. The result updates instantly and breaks down every line - not just the number on the offer letter.
Gratuity is calculated on basic salary only - keep this separate from allowances.
Housing, transport, and any other fixed monthly allowances.
UAE and GCC nationals require GPSSA pension contributions in addition to gratuity; expatriates do not.
Gratuity accrues at 21 days' basic salary per year for the first 5 years, then 30 days per year after that.
Indicative annual premium per employee - actual cost depends on insurer, coverage, and employee age.
Entry permit, Emirates ID, medical test and labour card, spread over a typical visa validity period.
Estimate only, based on standard UAE Labour Law gratuity formulas and typical market ranges for insurance and visa costs. GPSSA pension rates vary by emirate and are updated periodically - confirm exact figures with our payroll and PRO team before budgeting.
How this is calculated
- Gratuity: 21 days of basic salary per year of service for the first 5 years, then 30 days per year after - calculated on basic salary, not gross
- GPSSA pension: applies only to UAE and GCC nationals; an approximate 12.5% employer contribution is used here, but exact rates vary by emirate and scheme
- Health insurance: mandatory in Dubai and Abu Dhabi, and required in practice for visa sponsorship UAE-wide; premiums vary widely by insurer and coverage tier
- Visa & immigration: entry permit, medical test, Emirates ID and labour card, amortised over the visa's validity period
Why the real number is always higher than the offer letter
Most hiring budgets are built around gross salary alone. In the UAE specifically, that misses gratuity accrual (a real, growing liability even though it's only paid out at the end of employment), mandatory health insurance, and visa costs - typically pushing true employer cost 15–30% above gross salary depending on tenure and insurance tier.
Employee cost questions, answered.
Under UAE Labour Law, gratuity accrues at 21 days of basic salary per year for the first 5 years of service, and 30 days of basic salary per year for each year after that. It is calculated on basic salary only, not total gross salary including allowances.
No. GPSSA pension contributions apply only to UAE and GCC national employees. Expatriate employees are not covered by UAE social security, but employers must still budget for end-of-service gratuity, visa costs, and mandatory health insurance.
Yes, health insurance is a mandatory employer obligation in Dubai and Abu Dhabi, and is required in practice across the UAE for visa sponsorship. Cost varies significantly by coverage tier and insurer.
Hiring in the UAE? Get the real numbers.
Tell us your roles and headcount and we'll confirm exact payroll, visa, and compliance costs - before you make an offer, not after.