Salary Calculator — UAE
Calculate your monthly take-home salary in the UAE. Enter basic salary, housing, transport, and other allowances, plus any deductions, to see gross salary, net take-home, and annual salary. The UAE has no personal income tax, so take-home is close to gross.
Tax and Social Insurance in the UAE
The UAE has no personal income tax — salaries are paid tax-free. This is one of the biggest reasons expatriates move to the UAE, and it means take-home pay is essentially equal to gross salary.
GPSSA (UAE Nationals only) — the General Pension and Social Security Authority requires contributions from UAE nationals and their employers. Employee contribution: 5% of basic salary. Employer contribution: 12.5% (for employees with less than 5 years of service) or 15% (for those with 5+ years). Total 17.5–20% of basic salary.
Expatriates — no GPSSA deduction. Instead, expatriates receive an end-of-service benefit (gratuity) when their employment ends, calculated under UAE labour law. No monthly deduction for this — it is an employer cost accrued over time.
Note — since 2023, the UAE has introduced a 9% corporate tax on business profits above AED 375,000, but this does not affect personal salaries. Personal income remains tax-free.
Salary Calculator Formula
Gross = Basic + Housing + Transport + Other Allowances
GPSSA = Basic × 5% (UAE Nationals only)
Net = Gross − GPSSA − Other Deductions
Annual = Gross × 12
Worked Example
Expatriate employee with basic AED 15,000, housing AED 5,000, transport AED 2,000:
Gross = 15,000 + 5,000 + 2,000 = AED 22,000
GPSSA = AED 0 (expatriates don't contribute)
Net = AED 22,000 (tax-free)
Annual = 22,000 × 12 = AED 264,000
UAE national employee with same numbers:
GPSSA = AED 15,000 × 5% = AED 750
Net = 22,000 − 750 = AED 21,250
Annual = 22,000 × 12 = AED 264,000 (gross annual)
Net annual = 21,250 × 12 = AED 255,000
Frequently Asked Questions
Is there income tax in the UAE?
No. The UAE does not impose personal income tax on salaries, wages, or allowances. This is the primary reason expatriates are attracted to the UAE labour market — take-home pay is essentially equal to gross salary. Corporate tax (9%) was introduced in 2023 on business profits above AED 375,000, but this applies to companies, not to individual employees.
What is GPSSA?
GPSSA (General Pension and Social Security Authority) is the UAE's social insurance scheme for UAE nationals. Employees contribute 5% of basic salary; employers contribute 12.5% or 15% (depending on service length), bringing the total to 17.5–20% of basic salary. GPSSA provides retirement, disability, and death benefits. Expatriates are not covered by GPSSA — they receive end-of-service benefits instead.
What is end-of-service benefit in the UAE?
End-of-service benefit (gratuity) is a lump sum paid to expatriate employees when their employment ends. Under UAE Federal Decree-Law No. 33 of 2021, employees who have completed at least 1 year of continuous service are entitled to:
- 21 days' basic salary for each of the first 5 years of service
- 30 days' basic salary for each subsequent year
- Capped at 2 years' total salary
EOSB is calculated on basic salary only, not on allowances. The employer accrues this cost over the employee's tenure — it is not deducted from salary. Use the End of Service Calculator — UAE for details.
Is housing allowance taxable or subject to GPSSA?
No. Housing allowance is not taxable (there is no income tax in the UAE). GPSSA contributions are calculated on basic salary only, not on housing or other allowances. This means that shifting compensation from basic to allowances reduces GPSSA deductions for UAE nationals — a common structuring consideration in UAE compensation packages.
What other deductions might apply in the UAE?
Common deductions: health insurance (mandatory for all employees — typically AED 500–2,000 per employee per year), company accommodation deductions (if the employer provides housing and deducts from salary), loan repayments, and any voluntary benefits. For expatriates: no income tax or GPSSA. Enter any applicable deductions in the "Monthly Deductions" field.
How does UAE salary compare to Saudi Arabia?
Both countries have no personal income tax. Saudi Arabia has GOSI deductions for Saudi nationals (9.75%) and expatriates (2%), plus an expat dependent levy (SAR 400 per dependent/month). The UAE has GPSSA for UAE nationals (5% employee) but no deductions for expatriates. For expatriates, UAE take-home is essentially equal to gross salary. For nationals, both countries have social insurance deductions — Saudi GOSI (9.75%) is higher than UAE GPSSA (5%).