# Cost of hiring an employee in the UAE > The cost of a UAE employee is typically 12–25% more than their salary. On top of basic salary and allowances, budget for end-of-service gratuity accrual (21 days' basic a year), visa, Emirates ID and work permit fees, mandatory medical insurance, the annual air ticket if contracted, and training and equipment. Interactive calculator: https://www.countify.ae/tools/employee-cost-calculator · Updated 2026-10-14 · Countify UAE ## Full cost of an employee Allowances at half of basic; default visa, insurance, ticket and other costs. | Basic salary | Total annual cost | On top of salary | | --- | --- | --- | | AED 4,000 | AED 87,800.00 | 21.94% | | AED 8,000 | AED 162,600.00 | 12.92% | | AED 15,000 | AED 293,500.00 | 8.7% | A useful rule of thumb: budget 15–25% on top of salary. ## Costs that are easy to miss Gratuity is a liability that builds every month and is paid in one lump at the end, so accrue it monthly in your books. Visa costs depend on the free zone or mainland authority and the employee's role. Medical insurance is mandatory in Dubai and Abu Dhabi, and across the UAE through the federal scheme. - Gratuity accrual - Visa, Emirates ID, medical test and labour card - Health insurance - Air ticket and leave cover - Recruitment fees and onboarding ## Payroll done properly Salaries must be paid through the Wage Protection System. Our [payroll service](https://www.countify.ae/services/payroll-services) runs WPS, accrues gratuity and leave, and gives you a true monthly cost per employee. ## Legal basis - Federal Decree-Law No. 33 of 2021 on the regulation of labour relations (https://www.mohre.gov.ae/en/laws-and-regulations/laws.aspx) ## Frequently asked questions ### How much does it cost to hire an employee in Dubai? Typically salary plus 12–25%, depending on visa costs, insurance and benefits. ### Do UAE employers pay social security for expats? No. Expatriate employees accrue end-of-service gratuity instead. Emirati employees are covered by pension contributions.