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Salary Calculator UAE

The UAE has no personal income tax, so your gross salary equals your take-home. This calculator also estimates your annual end-of-service gratuity accrual.

Heads up: United Arab Emirates has no personal income tax for residents. Your take-home pay equals your gross.
Net annual pay
AED 240,000
No deductions
Monthly
AED 20,000
Fortnightly
AED 9,231
Weekly
AED 4,615
Marginal rate
0.0%

Total cost to employer: AED 248,285

Includes AED 8,285 in employer contributions on top of your salary.

Full breakdown

Every line item that affects your gross-to-net.

ItemAnnualMonthly
Gross salaryAED 240,000AED 20,000
Personal income tax

UAE has no personal income tax for residents.

AED 0AED 0
End-of-Service Gratuity accrual

21 days basic salary/year for the first 5 years. Paid as a lump sum when you leave.

AED 8,285AED 690
Net annual take-homeAED 240,000AED 20,000

Why your UAE salary buys more

A typical expat earning AED 240,000/year (AED 20,000/month) in the UAE keeps 100% of their gross. The same person in the UK on a salary equivalent (~£52,000) would take home about £40,500 after PAYE and NIC — roughly 78% of their gross. In India, ~₹54 Lakh CTC nets about ~₹42 Lakh in-hand under the New Regime — ~78% as well. UAE residents bank an extra 22% of their salary every month.

Gratuity worked example

An expat earning AED 20,000/month total with AED 12,000 basic salary (60% basic), after 7 years:

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Gratuity Calculator
End-of-Service: 21 days/yr first 5, 30/yr after

Frequently Asked Questions

Does the UAE really have no income tax?▾
Correct — the UAE has no personal income tax for residents or expats. Your gross salary equals your take-home pay. Income from employment, freelancing, dividends, capital gains, rental properties — none of it is taxed at the individual level. This is a fundamental reason for the UAE's appeal to professional expats from the UK, India, and elsewhere.
What's the catch? Are there any payroll deductions?▾
For most expats: no payroll deductions whatsoever. For UAE nationals (Emiratis), there's a mandatory pension contribution — 5% from the employee, 12.5% from the employer, plus 2.5% from the government — administered by the General Pension and Social Security Authority (GPSSA). Expats are not part of this scheme.
What is end-of-service gratuity (EOSG)?▾
Gratuity is a lump sum your employer must pay you when you leave the UAE. The formula: 21 days of your last basic salary per year of service for the first 5 years, then 30 days per year thereafter. So after 10 years, you'd receive: (21 days × 5) + (30 days × 5) = 255 days of basic salary as gratuity. The total is capped at 2 years' basic salary. This isn't paid monthly — it accrues and is paid out at the end of your contract.
What is corporate tax in the UAE — does it affect my salary?▾
The UAE introduced 9% corporate tax in June 2023 on business profits above AED 375,000. It applies to businesses, not individuals — so it doesn't affect your personal salary. Some free-zone businesses still qualify for 0% on 'qualifying income.' If you're a freelancer with a Free Zone trade licence, you might owe corporate tax on profits above the threshold.
Do I pay VAT on my income?▾
No — VAT (5%) applies to most goods and services you BUY, not to your income. So while you don't pay tax on your salary, you'll pay 5% extra when you buy a meal, hire a tradesperson, or pay your phone bill. Some categories like residential rent, certain financial services, and bare land are zero-rated or exempt.
Should I save my own retirement money — there's no UAE pension for expats?▾
Yes — gratuity is one-off and capped, not a substitute for retirement savings. Most expats either: (a) max contributions in their home country's pension (UK SIPP, Indian NPS, Australian super while non-resident) if rules allow, (b) invest into a UAE-based brokerage or international platform like Interactive Brokers, or (c) use a DIFC End-of-Service Workplace Savings Scheme (some employers offer this as an enhanced gratuity).
How is my pay actually structured in the UAE?▾
Most UAE contracts break your salary into 'basic' (usually 60–70% of total) plus 'allowances' (housing, transport, education for kids). Gratuity is calculated only on the basic portion — so a high allowance / low basic structure reduces your gratuity. Some employers also pay an annual ticket back to your home country and end-of-year bonus. None of this is taxed.