How it works
The UAE has no personal income tax on salaries, wages or bonuses, and there is no employee social security for foreigners. The 9% federal corporate tax introduced in 2023 applies to business profits above AED 375,000, not to employment income, and 5% VAT is charged on purchases rather than on pay. Your net salary is therefore your gross salary unless you are a UAE national.
UAE nationals: GPSSA pension
Emiratis working in the private sector are insured with the General Pension and Social Security Authority (GPSSA). Under Federal Law 57 of 2023, people first insured from 31 October 2023 pay an 11% employee share (employer 15%, of which the government covers 2.5 points for salaries under AED 20,000) on a contribution salary capped at AED 70,000 per month. People insured before that date remain under the 1999 law: 5% employee share, cap AED 50,000. The contribution salary is the pay stated in the employment contract (basic salary, bonuses and regular allowances).
End-of-service gratuity
Expatriates and nationals not covered by a pension scheme get an end-of-service gratuity from the employer after at least one year of service: 21 days of basic salary for each of the first five years and 30 days for each year after that, capped at two years of wages. It is a lump sum paid on leaving, not a monthly deduction, so it does not change the net salary shown here.
Worked example
Monthly salary AED 18,000
- Expatriate: net pay AED 18,000 (no deductions)
- UAE national under the new law (11%): pension AED 1,980 → net AED 16,020
- UAE national under the 1999 law (5%): pension AED 900 → net AED 17,100
What this calculator leaves out
GCC nationals working in the UAE are insured under their home-country rules or the GPSSA GCC arrangement, which differ by country and are not modelled. The minimum contribution salary, voluntary contributions, health-insurance premiums, loan repayments and the employer share are not included. Salary is assumed to be paid 12 times a year.