UAE private sector · 2026 rules

What does one employee cost in the UAE?

The salary is only part of it. Add gratuity, pension, insurance and visa costs, and see the real monthly figure.

Free · nothing you type leaves your browser · an estimate, not advice
Salary AED 9,000AED 9,767● per month, all in
Gratuity accrual21 days a year
Health insuranceRequired since 2025
21 daysof basic wage a year builds up as gratuity
12.5% or 15%employer pension share for UAE nationals
AED 320a year: MoHRE's basic health package
Every emiraterequires staff health insurance since 1 Jan 2025
Calculator

The real cost of one employee, as you type

Change any figure. Every line of the cost is shown.

One employee
Monthly cost of this employee
AED 0.00
Salary (basic + allowances)0
Gratuity building up0
Pension, employer share0
Health insurance0
Visa, ID and permit0
Ticket and other costs0
On top of the salary0
Cost a year, this employee0
Cost a year, all of them0

This is an estimate, not legal or tax advice. Fees differ by emirate and company; replace the defaults with your own.

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A worked example

An expatriate on AED 6,000 basic + 3,000 allowances, in the first five years

  1. Salary: 6,000 + 3,000 = AED 9,000
  2. Gratuity: 6,000 ÷ 30 × 21 ÷ 12 = AED 350
  3. Insurance 1,000 ÷ 12 = AED 83.33; visa 5,000 ÷ 24 = AED 208.33
  4. Ticket 1,500 ÷ 12 = AED 125, so 8.5% on top of the salary
Real monthly costAED 9,766.67AED 117,200 a year for one employee
The rules

What sits on top of a UAE salary

Gratuity

Expatriates earn 21 days of basic wage a year for five years, then 30. It is owed when they leave, so it is a monthly cost.

Pension for UAE nationals

GPSSA: the employer pays 15%, or 12.5% where the government pays 2.5% for salaries under AED 20,000.

Health insurance

Required for private-sector staff in every emirate since 1 January 2025, bought with the residence visa.

Visa and permits

Residence visa, Emirates ID, medical test and MoHRE work permit, usually renewed every two years.

Annual leave

30 days a year after the first year, paid as normal salary: no extra cost unless you hire cover.

Unemployment insurance

The ILOE scheme is paid by the employee, not the employer.

A salary is a promise. Its cost is bigger.

Know the real figure before you hire.

Inside Xrero

Staff cost, posted with every payroll

The provision, pension and insurance sit beside the salaries, per employee and per department.

Staff cost · October 2026 · 38 employeesPosted with payroll
LineOctober · AEDOf salaries
Salaries286,400.00100%
Gratuity provision9,214.003.2%
GPSSA, employer share4,125.001.4%
Health insurance3,166.671.1%
Visas and permits7,916.672.8%
Cost of staff310,822.34108.5%
Per employeeAED 8,179.54● By department too
How it goes

From your staff list to cost per head

A 20-minute look

Payroll, gratuity provision and staff cost on numbers like yours.

We load your staff

Contracts, allowances and visa dates go in once.

Cost per head, every month

Each payroll run posts the salary and the costs behind it.

Pricing

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AED 99 per user / month

AED 83 per user a month on the annual plan.

  • Payroll, gratuity provision and the WPS file
  • Staff cost per employee and per department
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Common questions

How much does an employee cost in the UAE on top of salary?

For an expatriate, usually about 8% to 15% on top of the gross salary: gratuity building up on basic pay, health insurance, visa and permit fees, and any ticket the contract gives. For a UAE national, the employer's pension share replaces gratuity.

Is gratuity a cost if the employee has not left?

Yes. It is earned every month of service and must be paid within 14 days of the last working day, so good books set it aside monthly as a provision.

What pension do I pay for an Emirati employee?

Under GPSSA rules the employer pays 15% of the contribution salary, or 12.5% where the government pays 2.5% (private-sector salaries under AED 20,000, and staff registered before 31 October 2023). The employee pays 11% (5% under the old law).

Do I pay the unemployment insurance (ILOE)?

No. ILOE premiums are the employee's, not the employer's.

See the real cost of your team, every month.

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