UAE Employee Total Cost Calculator
The real monthly cost of hiring someone in the UAE — salary, visa, EID, insurance, gratuity accrual, all in one figure for budgeting and headcount planning.
Salary
Benefits & structure
One-off costs
How to use
- 1
Enter the monthly gross salary you're offering. This is everything that lands on the payslip — basic + housing + transport + other allowances.
- 2
Set the basic salary percentage. Most UAE employers split 50-60% as basic. Lower basic reduces gratuity exposure but is harder to defend if MOHRE inspects.
- 3
Pick the health insurance plan tier. Basic plans start around AED 1,800/year. Mid-tier corporate is AED 4,500. Premium for senior hires is AED 12,000+.
- 4
Tick the DIFC checkbox if your company is DIFC-registered. DIFC requires DEWS contributions (5.83% of basic monthly) instead of traditional gratuity accrual.
- 5
Enter the recruitment cost. Recruiter fee if you used an agency (typically 15-25% of annual salary), or AED 0 if hired through referrals.
- 6
Set expected tenure. Used to amortise one-off costs over the years you expect the employee to stay. UAE average is 2-3 years.
- 7
The result shows your true monthly cost — usually 15-25% above the gross salary figure. Use this for headcount planning, not the salary line.
Frequently asked questions
Because the salary is what you pay the employee. The total cost includes everything you ALSO pay on their behalf: health insurance, visa, EID, mandatory gratuity accrual reserve. For a mid-level salary of AED 15,000/month, the true monthly cost typically lands around AED 17,500-18,500 — about 18% above gross.
Hire through a free zone with included visa quota (DMCC, IFZA), pick the basic health insurance tier, structure gratuity efficiently (don't over-load basic salary), and minimise recruitment costs by hiring via referral. A AED 10,000/month junior hire can cost AED 11,500-12,000 total this way.
Yes in Dubai (DHA rules since 2014) and most other emirates. The minimum is the Essential Benefits Plan from a DHA-licensed insurer (around AED 1,500-2,000/year per employee). For employees' families, the employer is responsible only if the family is on the employer's visa sponsorship.
For non-DIFC employers, you should set aside roughly 21 days of basic salary per year (8.75% of annual basic) as a gratuity reserve in years 1-5, then 30 days per year (8.33%) after that. Cap is 2 years of basic. The calculator uses the first-5-years rate as the default monthly accrual figure.
DEWS = DIFC Employee Workplace Savings. It's mandatory for all DIFC-registered employers. You contribute 5.83% of each employee's basic salary monthly into a regulated trust. This replaces traditional end-of-service gratuity. Non-DIFC employers continue to use the traditional gratuity model.
Through a professional recruiter, yes. Specialist roles can go higher. The calculator lets you set 0 if you hire through job boards (LinkedIn, Bayt — free or cheap) or employee referrals. For senior hires, the recruiter cost can dwarf everything else combined.
Initial visa stamping + medical + EID for a new hire is roughly AED 4,500 + AED 370 = AED 4,870. Renewal every 2-3 years is cheaper at AED 3,200 + AED 370 = AED 3,570. The calculator amortises these over the employee's tenure to show the true annual impact.
Salary increases (annual raises), end-of-service gratuity payout (which is a future liability, not a current cost), pension contributions for UAE/GCC nationals (5%), training costs, equipment, office space, software licences, parking, and entertainment / business travel. For full fully-loaded cost, add another 15-30% depending on your industry.
Related tools
Source: UAE MOHRE, Dubai Health Authority, Federal Decree-Law 33 of 2021 · Last verified 2026-06. Verify on MOHRE (mohre.gov.ae). This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.