About these figures: Costs and timelines on this page are indicative planning figures compiled from public free zone fee information. They have not been individually verified for this page, may be out of date, and must be confirmed with the free zone before you pay. How we source prices · How we compile data.
UAE Employee Cost Calculator Guide 2026 — Total Employment Cost in UAE
Hiring in UAE comes with multiple costs beyond the salary. Here is the 2026 guide to calculating the true total cost of an employee for a UAE free zone company.
In this guide:
Total Employee Cost Components
- Base salary: Agreed monthly amount (AED per month)
- Employment visa: AED 3,000-6,000 per employee (one-time; renewal every 2-3 years)
- Health insurance (mandatory): AED 1,500-5,000/year depending on plan and emirate
- End of Service Gratuity (ESG) accrual: 21 days of basic salary per year for first 5 years
- Annual leave cost: 30 calendar days paid leave per year
- WPS salary processing: Small administrative cost (AED 50-100/month for payroll software)
Total Employment Cost Examples
Junior Employee (AED 5,000/month salary)
- Annual salary: AED 60,000
- Visa cost (amortized over 2 years): AED 2,250/year
- Health insurance: AED 2,500/year
- ESG accrual (21 days basic = ~AED 3,500): AED 3,500/year
- Total annual employment cost: AED 68,250 (14% above base salary)
Mid-Level Employee (AED 15,000/month salary)
- Annual salary: AED 180,000
- Visa cost: AED 2,500/year
- Health insurance: AED 4,000/year
- ESG accrual: AED 10,500/year
- Total annual employment cost: AED 197,000 (9.5% above base salary)
UAE vs. Home Country Employer Costs
- UAE: No payroll tax; no employer social security contributions; no pension contributions (except voluntary)
- UK: Employer NI 13.8% + pension 3% = 16.8% on top of salary
- Germany: Employer social security ~20% on top of salary
- UAE advantage: Significantly lower employer-side employment cost than most developed countries
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