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.
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Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Salary Benchmarking Report for United Arab Emirates
1. Employment Costs by Experience Level
Employment Costs by Experience Level in United Arab Emirates in 2025
| Experience Level | Base Salary Range (AED) | Base Salary Range (USD) | Total Cost to Employer (AED) | Total Cost to Employer (USD) |
|---|---|---|---|---|
| Entry Level (0-2 years) | AED 10,000 - 15,000 | $2,723 - $4,084 | AED 12,100 - 18,150 | $3,295 - $4,942 |
| Junior (2-5 years) | AED 15,000 - 25,000 | $4,084 - $6,807 | AED 18,150 - 30,250 | $4,942 - $8,237 |
| Mid-Level (5-8 years) | AED 25,000 - 40,000 | $6,807 - $10,891 | AED 30,250 - 48,400 | $8,237 - $13,178 |
| Senior (8-12 years) | AED 40,000 - 65,000 | $10,891 - $17,699 | AED 48,400 - 78,650 | $13,178 - $21,416 |
| Lead/Principal (12+ years) | AED 65,000 - 95,000 | $17,699 - $25,868 | AED 78,650 - 114,950 | $21,416 - $31,300 |
Exchange rate: 1 AED = 0.27227 USD (January 2024). Total Cost to Employer includes mandatory benefits such as annual leave, end-of-service gratuity, and workplace insurance (approximately 21% above base salary). Salary ranges represent monthly compensation.
2. Average Total Employment Costs by Role (Annual)
Employment Costs by Role in United Arab Emirates (2024)
Annual salary and total employment costs for key professional roles in the UAE. Data reflects average market rates for Dubai and Abu Dhabi metropolitan areas.
| Role | Base Salary (AED) | Base Salary (USD) | Total Cost (AED) | Total Cost (USD) |
|---|---|---|---|---|
| Software Engineer | 180,000 | 49,000 | 189,900 | 51,700 |
| Product Manager | 264,000 | 71,900 | 278,520 | 75,850 |
| Marketing Manager | 240,000 | 65,350 | 253,200 | 68,950 |
| Sales Representative | 156,000 | 42,475 | 164,580 | 44,810 |
| HR Manager | 228,000 | 62,080 | 240,540 | 65,495 |
| Finance Manager | 276,000 | 75,150 | 291,180 | 79,280 |
| Operations Manager | 252,000 | 68,620 | 265,860 | 72,395 |
| Data Scientist | 216,000 | 58,815 | 227,880 | 62,050 |
| UX Designer | 192,000 | 52,280 | 202,560 | 55,155 |
| Customer Success Manager | 168,000 | 45,745 | 177,240 | 48,270 |
Note on Additional Benefits:
Standard employment packages in the UAE typically include:
- Health insurance (mandatory in Dubai and Abu Dhabi)
- Annual flight tickets to home country
- Housing allowance (25-30% of base salary)
- Transportation allowance
- End of service gratuity (calculated based on years of service)
- 30 calendar days of annual leave
- Public holiday leave (approximately 12-15 days)
Total Cost to Employer includes mandatory employer contributions of 5.5% for UAE nationals' pension fund (where applicable) and required insurance coverage. Exchange rate used: 1 AED = 0.272 USD. Figures are rounded to the nearest whole number.
Note: All figures are approximations based on current market data. Actual salaries may vary based on specific company policies, location within United Arab Emirates, and other factors. Currency conversions are approximate and subject to change.
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 5% of their salary towards social security. Employers contribute an additional 12.5%, with the government adding 2.5%, totaling 20%. In Abu Dhabi, the total contribution is higher, at 26%, with the employer and government contributing more.
- 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 5, 2025, 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.
