PayMetric Labs
UAE · 2026 labour law

UAE Salary Calculator

The UAE has no personal income tax, so your take-home pay is your full gross salary. Enter your salary to confirm your net pay, and see how much end-of-service gratuity you'd build up over time.

Annual take-home

AED 300,000

Monthly take-home

AED 25,000

Effective deduction rate

0.0%

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Frequently asked questions

1

Is salary really tax-free in the UAE?

Yes. The UAE has no personal income tax on employment salaries for residents of any nationality. Your take-home pay equals your gross salary in full — there is no equivalent of PAYE, income tax bands, or a payroll social-security deduction on your paycheck as an expatriate employee.

2

What is UAE gratuity and how is it calculated?

Gratuity (end-of-service benefit) is a lump sum your employer owes you when you leave, based on your basic salary and years of service: 21 days' basic pay per year for the first 5 years, then 30 days' basic pay per year after that, capped at 2 years' basic salary in total. It's paid on exit, not deducted from your monthly pay.

3

Does gratuity apply if I resign instead of being terminated?

Yes, in full. Under Federal Decree-Law No. 33 of 2021, resigned and terminated employees receive the same full gratuity entitlement — the older reduced-gratuity-for-resignation rule was scrapped.

4

Is gratuity calculated on my full salary or just basic pay?

Basic pay only. Housing allowance, transport allowance, bonuses, and other benefits are excluded from the gratuity calculation, even though they may be a large part of your total package. Many UAE packages split roughly 60-80% basic salary and the rest allowances — check your offer letter for the actual split.

5

Do I pay into a pension in the UAE?

Only if you're a UAE or GCC national — the GPSSA pension scheme applies to nationals, not expatriates. Some free zones (like DIFC's DEWS scheme) run an employer-funded savings plan for expats instead of the standard gratuity, so check which scheme applies to your specific employer and free zone.

6

How does UAE take-home compare to the UK or Ireland?

Considerably higher for the same gross figure, since there's no income tax or National Insurance/PRSI equivalent. A £/€ salary that loses 30-45% to tax and social contributions in the UK or Ireland keeps 100% of its AED-equivalent value in the UAE, before accounting for cost-of-living differences.

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