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Instant answer for a AED 280,000 package (expat, 70% basic split)
Hiring on a AED 280,000 total package really costs roughly AED 293,427 to AED 296,127/year once mandatory health insurance, visa and labour card fees, and gratuity accrual are added, a load of 4.8% to 5.8% on top of the quoted figure.
Quoted package
AED 280,000
What the offer letter shows
True cost (low)
AED 293,427
Essential health plan
True cost (high)
AED 296,127
Enhanced health plan
Quoted package
AED 280,000
Health insurance (essential to enhanced)
AED 650 – AED 1,100
Visa + labour card (annualized)
AED 1,500 – AED 3,750
Gratuity accrual (year-1 rate, 70% basic)
AED 11,277
Assumes an expatriate employee and a 70% basic-salary split. For UAE/GCC nationals, add employer GPSSA contributions. Use the full calculator to adjust the basic-salary split, nationality, and health insurance tier.
On top of the AED 280,000 quoted package, budget roughly AED 293,427 to AED 296,127 in true annual cost once mandatory health insurance, the annualized visa and labour card fee, and gratuity accrual (assuming a 70% basic-salary split) are added.
This estimate assumes an expatriate employee, so no GPSSA applies. If the employee is a UAE or GCC national, add employer GPSSA contributions of 12.5-15% of basic salary on top, a materially larger load than the expat cost stack shown here.
70% is a common midpoint for UAE packages, which are typically split 60-80% basic salary with the remainder as housing and transport allowances. Gratuity accrual is calculated on basic salary only, so a lower basic percentage in your actual offer reduces the gratuity line shown here.
Figures are typical 2026 market ranges for health insurance and visa/labour-card costs, not a single official fee schedule; actual costs vary by Emirate, company classification, and provider. Always confirm exact fees with your PRO or HR provider.