UAE True Cost to Hire Calculator

Typically an extra 4-10% of the quoted package per year once you add mandatory health insurance, the annualized cost of the employment visa and labour card, and an annual gratuity provision. If the employee is a UAE or GCC national, add GPSSA employer contributions of 12.5-15% of basic salary on top, which is a much larger load.

Yes. Every Emirate requires employers to provide health insurance for their employees, and the cost must be borne entirely by the employer, not deducted from salary. Dubai's DHA Essential Benefits Plan sets a floor of roughly AED 650-1,100/year per employee for a basic plan; deducting the premium from an employee's pay is a violation that carries a fine.

A typical 2-year mainland employment visa bundle, covering the MOHRE work permit and labour card, entry permit, medical test, Emirates ID, and residence visa stamping, runs roughly AED 3,000-7,500 per employee, depending on the employer's classification category and Emirate. It is illegal for an employer to recover this cost from the employee.

Gratuity is paid as a lump sum only when an employee exits, but a well-run business should provision for it every year it's being earned, not treat it as a surprise cost at offboarding. The calculator shows the year-1 accrual rate (21 days' basic pay), which is the conservative annual provisioning most finance teams use before an employee crosses the 5-year step-up to 30 days.

No. GPSSA pension contributions only apply to UAE and GCC nationals. For expatriate employees there is no employer or employee payroll pension contribution at all; gratuity is the expat equivalent end-of-service benefit instead.

Under Federal Law No. 57 of 2023, the employer contributes 15% of contributable salary (reduced to 12.5% via a government subsidy for private-sector nationals earning under AED 20,000/month), the employee contributes 11%, and contributions are capped at a AED 70,000/month contributable salary.