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UAE Free Zone Employee Cost Calculator 2026
Hiring an employee in a UAE free zone involves more than just the salary. Total employer cost includes visa costs, medical insurance, WPS compliance, end-of-service gratuity accrual, and free zone permit fees. This calculator covers the true cost of hiring in UAE free zones for 2026.
In this guide:
UAE Employee Cost Components
- Gross salary: agreed monthly salary (AED)
- UAE free zone work permit/employment visa: AED 2,500–4,000/year (amortised: AED 208–333/month)
- UAE medical insurance (mandatory): AED 1,500–5,000+/year per employee (AED 125–417/month)
- Emirates ID renewal: AED 372/2 years (AED 15/month amortised)
- End-of-service gratuity: 21 calendar days’ basic salary per year (first 5 years); 30 days per year thereafter; accrues monthly at 5.83% of basic salary/month
- Annual leave: minimum 30 calendar days; essentially 1 additional month of salary per year (8.33% monthly accrual)
Example: Mid-Level Employee (AED 10,000/month Basic Salary)
- Monthly salary: AED 10,000
- Visa/permit (amortised): AED 275
- Medical insurance (mid-tier): AED 300
- Emirates ID (amortised): AED 15
- Gratuity accrual: AED 583 (5.83% of basic)
- Annual leave accrual: AED 833 (8.33% of basic)
- Total employer cost: AED 12,006/month (120% of basic salary)
- Annual cost: AED 144,072
Example: Junior Employee (AED 4,000/month Basic)
- Monthly basic: AED 4,000
- Visa/permit: AED 275
- Medical insurance (basic): AED 150
- Emirates ID: AED 15
- Gratuity accrual: AED 233
- Annual leave accrual: AED 333
- Total employer cost: AED 5,006/month (125% of basic)
- Annual cost: AED 60,072
Additional Cost Items (Depending on Role)
- Transport allowance: AED 500–2,000/month (if provided)
- Housing allowance: AED 1,000–5,000/month (if provided for senior roles)
- Performance bonus: typically 0-30% of annual salary
- Training and development: AED 2,000–10,000/year for corporate roles
Minimum UAE Salary Requirements
- No federal minimum wage for private sector (except minimum wage for domestic workers: AED 2,000 effective 2022 for non-skilled categories)
- Free zone minimum: no specific minimum but MOHRE anti-exploitation guidance applies
- WPS compliance: salary must be paid on time via bank transfer; failure = MOHRE action
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