UAE Take-Home Salary Calculator (Dubai / Abu Dhabi)
The UAE has zero personal income tax — your gross monthly salary is your take-home, with one exception: UAE / GCC nationals contribute 5% to pension. This calculator also projects your end-of-service gratuity (expats only) per Federal Decree-Law No. 33 of 2021.
Inputs
Projected at 3 years of service, based on your basic salary. Per Federal Decree-Law 33/2021.
UAE payroll basics
- No personal income tax — applies to residents and non-residents.
- Pension (UAE / GCC nationals only): 5% employee + 12.5% employer + 2.5% government → 20% of gross to GPSSA.
- Expats: no pension contribution, but employers must accrue end-of-service gratuity throughout your tenure.
- WPS (Wage Protection System) — salaries must be paid via approved bank channels for the MoHRE to release work-permit renewals.
End-of-service gratuity formula (expats)
- Less than 1 year of service: zero.
- First 5 years: 21 days of basic salary per year.
- After 5 years: 30 days of basic salary per year (added on top of the first-5-year accrual).
- Total cap: 2 years of total wage.
- Computed on basic salary only — housing, transport, utility allowances are excluded.
Most UAE employment contracts split 50-60% as basic and the remainder as allowances. Higher basic = higher EOS gratuity but also higher mandatory severance accrual on the employer's books.
Frequently asked questions
Do I really pay zero income tax in the UAE?▾
Yes — for personal income. The UAE introduced a 9% corporate tax in 2023 (for businesses earning above AED 375k profit), but salaries are not taxed. There's also no inheritance tax, no capital gains tax on personal investments, and no payroll tax beyond GCC pension.
What about VAT?▾
5% VAT applies to most goods and services since 2018, but it's a consumption tax, not a salary deduction. It doesn't reduce your take-home — it just slightly raises living costs.
I'm an Indian resident working remotely for a UAE company — am I taxed?▾
Yes — your residence (where you spend >182 days) determines your tax liability. If you're physically in India, your global income (including UAE salary) is taxable in India. The UAE doesn't withhold, but India will. Get the DTAA (Double Tax Avoidance Agreement) certificate from the UAE employer to avoid double taxation.
Is the end-of-service gratuity guaranteed?▾
Yes — by federal law, an employer must pay it on termination (after 1+ year of service). If they don't, MoHRE has fast-track resolution. Some free zones (DIFC, ADGM) operate slightly different DEWS schemes where the employer contributes monthly to a fund instead — same total liability, just paid as you go.
What's a typical Dubai salary in hand?▾
Mid-level software engineer: AED 18-25k/mo gross = AED 18-25k take-home. Senior management: AED 40-60k/mo. Compared to India tax-adjusted, AED 25k (~₹5.7 L/mo) is roughly equivalent to a ₹1.0-1.2 Cr Indian salary in tax-adjusted terms.