Written by
Reviewed by
Last updated: July 21, 2026
Employment Cost Calculator for United Arab Emirates
Calculate your complete hiring costs for United Arab Emirates employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Corporate Tax | 0% (up to AED 375,000) | Taxable Income |
| 9% (above AED 375,000) | Taxable Income | |
| VAT | 5% | Most goods and services supplied |
| Social Security (UAE Nationals) | 12.5% (Employer) / 15% (Employer - Abu Dhabi) | Gross Remuneration / Total Salary |
| DIFC DEWS (Employers) | 5.83% or 8.33% | Employee's Basic Salary |
Filing & Compliance
- Corporate Tax returns are generally due within nine months from the end of the tax period.
- VAT returns are typically filed quarterly, by the 28th day following the end of the tax period. Monthly filing may be required for certain businesses.
- Social Security contributions for UAE nationals are due by the 15th day of the following month.
The UAE boasts a tax-friendly environment with no personal income tax. However, specific deductions and contributions apply, primarily for UAE nationals.
Social Security Contributions
-
UAE Nationals: Contribute 11% of their salary towards social security. Employers contribute an additional 15%, totaling 26%. In Abu Dhabi, the total contribution is higher, with the employer contributing 15% and the government adding 6%, totaling 32%.
-
Expatriates: Are not required to make social security contributions.
Pension Contributions
-
UAE Nationals: Mandatory pension contributions apply. While specific rates can vary based on years of service and other factors, general guidelines include 5.83% of the basic monthly salary for those with less than five years of service and 8.33% for those with five or more years of service. The employer also makes contributions.
-
Expatriates: Not subject to mandatory pension contributions in the UAE.
Other Deductions
Several other deductions can apply, including:
-
Health insurance premiums (if applicable and cost-shared).
-
Salary advances or loans.
-
Fines or penalties as per UAE labor law.
Corporate Tax
- A 9% corporate tax has been in effect since June 1, 2023, applicable to businesses exceeding a profit threshold of AED 375,000.
It is important to note that this information is current as of February 17, 2026, and might be subject to change due to legal or regulatory updates. Consulting with a tax professional for the latest information and personalized advice is always recommended. Further, while personal income tax does not exist, other taxes, like the corporate tax, may indirectly impact an individual's overall financial situation. Lastly, specific regulations can vary between emirates, such as the higher social security contribution rates in Abu Dhabi. Staying informed about these nuances is crucial for accurate financial planning and compliance.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
View profileReviewed by
Sebastien Wakim
Sébastien Wakim is CEO of Rivermate and has led the Hightekers group since 2024. An early Uber employee, he launched and scaled the company's operations across multiple MENA markets before holding senior leadership roles at OLX Group. He later co-founded Wisewell, a water-technology venture active in the US and GCC. He holds an MBA from Columbia Business School and an MS in engineering from UC Berkeley.
View profile
