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.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
A 2-year visa cost divided by 2.
- Annual salary
- AED 144,000.00
- Gratuity accrual (21 days' basic a year)
- AED 5,600.00
- Visa, insurance, ticket and other
- AED 13,000.00
- Total annual cost
- AED 162,600.00
- Cost per month
- AED 13,550.00
- On top of salary
- 12.92%
Gratuity accrues at 30 days' basic salary a year after 5 years. Emirati employees add GPSSA pension contributions.
Results are estimates for general information, not tailored advice.
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 runs WPS, accrues gratuity and leave, and gives you a true monthly cost per employee.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
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.
Payroll and WPS services
We run monthly WPS payroll, track leave and gratuity, and prepare final settlements correctly, so HR questions do not become labour complaints.