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UAE Cost of Hiring Calculator

Salary is just the beginning — discover your real monthly employer cost including gratuity accrual, GPSSA, medical insurance, and compliance charges.

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Enter employee details to see the true monthly employer cost

Includes gratuity, medical, GPSSA/DEWS, ILOE & visa

Hiring an employee in the UAE typically costs 15–30% more than their gross salary package. An AED 20,000 package runs AED 23,000–27,000 per month once you include gratuity accrual, leave encashment provisions, medical insurance, ILOE, and visa costs — costs that most employers underestimate until the invoice arrives.

UAE Employer Cost Components — Reference Table

Every UAE employer incurs these statutory obligations on top of the agreed salary package. Understanding each line item is essential for accurate headcount budgeting.

Cost ComponentRate / AmountApplies ToSource
Gratuity Provision21 days/yr (≤5yr) · 30 days/yr (>5yr) of basicExpats (mainland UAE)Art. 51, Federal Decree-Law 33/2021
GPSSA Employer12.5% basic (Dubai) · 15% basic (Abu Dhabi)UAE nationalsFederal Law No. 7 of 1999
GPSSA Employee5% basic (deducted from net pay)UAE nationalsFederal Law No. 7 of 1999
DEWS Employer5.83% basic (<5yr) · 8.33% basic (≥5yr)DIFC employeesDIFC Employee Workplace Savings Scheme
Medical InsuranceAED 650–6,000/yr depending on planAll employees (mandatory)DHA Dubai / DOH Abu Dhabi regulations
ILOEAED 10/month per employeeAll employeesMinisterial Resolution No. 40 of 2023
Leave Encashment Provision30 days package/year → ~8.2% monthly provisionAll employeesFederal Decree-Law No. 33 of 2021, Art. 29
Visa Renewal≈ AED 3,500/yearExpats (work permit + visa)MOHRE + ICP fee schedule

Source: MOHRE, GPSSA, DIFC Authority — Last verified July 2026.

Worked Examples

Expat accountant

AED 15,000 basic + AED 5,000 housing + AED 1,500 transport, standard medical, 1 year service

Gross packageAED 21,500/mo
Gratuity provisionAED 875/mo
Leave encashment provisionAED 1,767/mo
Standard medicalAED 208/mo
Visa renewalAED 292/mo
ILOEAED 10/mo
Total employer cost≈ AED 24,652/mo

CTC multiplier ≈ 1.15× — 15% above the gross package

UAE national engineer (Dubai)

AED 20,000 basic + AED 5,000 housing, standard medical, 3 years service

Gross packageAED 25,000/mo
GPSSA employer (12.5%)AED 2,500/mo
Leave encashment provisionAED 2,055/mo
Standard medicalAED 208/mo
ILOEAED 10/mo
Total employer cost≈ AED 29,773/mo

CTC multiplier ≈ 1.19× — no visa cost, but GPSSA adds AED 2,500/mo

DIFC lawyer

AED 35,000 basic + AED 10,000 housing, premium medical, 4 years service

Gross packageAED 45,000/mo
DEWS (5.83%)AED 2,041/mo
Leave encashment provisionAED 3,699/mo
Premium medicalAED 500/mo
ILOEAED 10/mo
Total employer cost≈ AED 51,250/mo

CTC multiplier ≈ 1.14× — DEWS replaces gratuity liability in DIFC

Frequently Asked Questions

What is included in the true cost of hiring in UAE?▾
The true monthly cost includes the gross salary package plus: gratuity accrual (21 days' basic per year under Article 51), mandatory medical insurance (DHA/DOH-regulated), annual leave encashment provision (30 days per year), GPSSA contributions for UAE nationals (12.5–15% employer), DEWS for DIFC employees (5.83–8.33%), work permit/visa renewal (AED 3,500/year for expats), and ILOE insurance (AED 10/month). Together these add 15–30% on top of the salary package.
How does gratuity accrue under the new UAE labour law?▾
Federal Decree-Law No. 33 of 2021 (Article 51) sets gratuity at 21 calendar days' basic salary per year for the first 5 years of service, then 30 days per year for all years beyond 5. An employee qualifies after 1 full year. The total is capped at 24 months' basic. Example: AED 15,000 basic at 5 years = AED 52,500 gratuity.
What is GPSSA and who pays it?▾
GPSSA (General Pension and Social Security Authority) is the mandatory UAE pension for private-sector UAE nationals. Under Federal Law No. 7 of 1999, employers contribute 12.5% of basic salary (Dubai) or 15% (Abu Dhabi), plus the employee contributes 5%. Expat employees are not enrolled in GPSSA — their retirement benefit is the cash gratuity paid at end of service.
What is DEWS and how does it differ from gratuity?▾
DEWS (DIFC Employee Workplace Savings Scheme) is the mandatory employer-funded retirement plan for DIFC company employees. The employer contributes 5.83% of basic monthly for employees with fewer than 5 years' service, rising to 8.33% for 5+ years. Unlike gratuity — which is a lump sum at the end — DEWS accumulates in a portable investment account that belongs to the employee.
Is medical insurance mandatory for all UAE employees?▾
Yes. Dubai Health Authority (DHA) regulations require all Dubai employers to provide at minimum a basic health insurance plan. Abu Dhabi's Department of Health (DOH) has equivalent rules. Basic cover costs approximately AED 650 per person per year. Non-compliance results in fines and visa processing blocks. Standard plans (AED 2,500/yr) and premium plans (AED 6,000/yr) provide broader cover including dental and specialist care.
What is ILOE?▾
ILOE (Insurance against Loss of Employment) is a mandatory subscription insurance introduced under Ministerial Resolution No. 40 of 2023. Employers pay AED 10 per employee per month. The scheme pays the insured employee 60% of their average salary for up to 3 months if they are involuntarily made redundant. It is administered by the government and is separate from the end-of-service gratuity obligation.
How much gratuity does an employee earn after 5 years?▾
Under the new UAE Labour Law (Article 51): 21 days' basic salary per year × 5 years = 105 days of basic = 3.5 months' basic salary. For AED 15,000 basic, that is AED 52,500 at the 5-year mark. From year 6 onwards, the rate increases to 30 days per year, so at 10 years: (21 × 5) + (30 × 5) = 255 days = 8.5 months' basic.
Can I offset gratuity liability with a DEWS scheme?▾
Only DIFC-registered companies can replace gratuity with DEWS. For mainland UAE companies, the Federal Decree-Law No. 33 of 2021 gratuity obligation remains. Some mainland employers fund their gratuity liability through insurance-linked products (group life/endowment policies), but the legal obligation is still governed by the Labour Law. ADGM (Abu Dhabi Global Market) has its own Employee Workplace Savings scheme, similar to DEWS.

Data sources: MOHRE.gov.ae · GPSSA.gov.ae · DIFC DEWS · Privacy Policy

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This calculator is for informational purposes only. Always verify with a licensed HR advisor or lawyer for specific employment decisions. UAE labour law changes may affect results.

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