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Payroll & HR Compliance

UAE Salary & Cost-to-Company Calculator 2026

Calculate gross-to-net take-home pay, basic and allowance splits, GPSSA pension deductions, monthly gratuity accrual, and total employer cost under UAE Labour Law No. 33 of 2021.

Salary & Package Inputs

Total contractual monthly package before deductions.
Estimated employer cost for mandatory insurance, visa amortisation & licensing.
UAE Labour Law & WPS Guidelines:
• 0% Income Tax: Take-home pay = Gross minus employee pension (if national).
• Gratuity Accrual: Basic salary × (21 ÷ 365) monthly provision (first 5 yrs).
• Total CTC: Gross + Employer Pension + Gratuity Accrual + Insurance/Visas.
Monthly Net Take-Home Pay
AED 18,000
Basic Salary (sole gratuity basis)AED 10,800
Housing AllowanceAED 5,400
Transport / Other AllowanceAED 1,800
Employee Pension (GPSSA 5%)AED 0
Monthly Gratuity Accrual (Provision)AED 621
Employer Pension (GPSSA 12.5%)AED 0
Total Monthly Cost to Employer (CTC)AED 19,271
Annual Total Employer CostAED 231,252
Expatriate employee: 0% tax withholding. 100% of gross paid via WPS.

UAE Payroll, WPS & Labour Law Compliance

1. Is there personal income tax in the UAE?
No. The UAE maintains a strict 0% personal income tax regime for individual salaried employees and freelancers. Employees take home 100% of their contracted gross remuneration, subject only to pension deductions if they are UAE or GCC nationals.
2. Why is the Basic Salary percentage so important in UAE contracts?
Under Article 51 of Federal Decree-Law No. 33 of 2021, statutory End-of-Service Gratuity is computed exclusively on the employee's last Basic Salary, explicitly excluding housing, transport, utility, and other allowances. Structuring contracts with a reasonable Basic Salary ratio (typically 50% to 60%) provides appropriate terminal severance while preventing unmanageable balance sheet gratuity liabilities for the enterprise.
3. How does the Wage Protection System (WPS) enforce salary compliance?
The UAE Ministry of Human Resources and Emiratisation (MOHRE) mandates salary payments via the electronic Wage Protection System (WPS). Companies that fail to disburse at least 80% of total workforce wages within 15 days of the due date face immediate work permit issuance blocks, financial fines, and court referrals for persistent non-compliance.
4. What are the mandatory pension rules for UAE Nationals?
Employers in the private sector employing UAE Nationals must register them with the General Pension and Social Security Authority (GPSSA). The statutory employee contribution is 5% (deducted from gross pay), while the employer contributes 12.5% (or 15% depending on jurisdiction and federal reform date) of the national's contributory wage.
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