UAE Salary Calculator
Break a package into basic pay and allowances — and see the daily wage and gratuity accrual behind it.
Break down a salary package
Market conventions as of 2026. Amounts in AED.
Gross monthly package including basic pay and all allowances.
UAE contracts commonly set basic pay at 50–60% of the package. Basic pay drives gratuity and certain benefits.
Why the split matters
End-of-service gratuity, some leave encashment, and certain benefits are calculated on basic salary only — a lower basic share reduces those entitlements even when the total package is the same.
Monthly basic pay
AED 9,000.00
- Allowances
- AED 6,000.00
- Annual package
- AED 180,000.00
- Daily wage (basic ÷ 30)
- AED 300.00
- Gratuity accrual / month
- AED 525.00
- • UAE salaries are typically tax-free for employees — no personal income tax is deducted.
- • The basic/allowances split is set by the employment contract; basic pay drives gratuity and some benefits.
- • Gratuity accrual shown uses 21 days of basic salary per year (first-5-years band).
- • Employers may also owe pension contributions for UAE/GCC nationals and other costs (visa, insurance) not shown here.
Salary calculator FAQs
Is salary taxed in the UAE?+
No personal income tax is deducted from salaries in the UAE — employees generally receive their package gross. Corporate Tax applies to business profits, not employee salaries.
What is the difference between basic salary and total package?+
The total package includes basic salary plus allowances (housing, transport, and others). Basic salary is the contractual core amount, and it drives end-of-service gratuity and certain benefits.
What basic-to-package ratio is common in the UAE?+
Many UAE contracts set basic pay at 50–60% of the total package, but there is no single legal ratio for most private-sector roles. A very low basic share reduces gratuity and similar entitlements.
What employer costs sit on top of the salary?+
Employers typically also fund visas, medical insurance, gratuity accruals, and — for UAE and GCC nationals — pension contributions. These are costs to the employer, not deductions from the employee.
Does this calculator show my exact take-home pay?+
For most UAE employees, take-home pay equals the agreed package since there is no income tax. The calculator illustrates the basic/allowances split and the gratuity accrual employers commonly provision.
Need a Professional Assessment?
This calculator gives you a quick estimate only. Our consultants review your actual circumstances — structure, contracts, elections, and exemptions — and give you advice you can act on with confidence.
Disclaimer: This calculator provides an estimate based on standard UAE regulations. Actual tax or employment outcomes may vary depending on your specific circumstances, applicable laws, exemptions, elections, and regulatory changes. Please consult our experts before making financial, tax, or employment decisions.