UAE salary breakdown.
Basic, allowances, gratuity accrual, overtime rates and GPSSA: exactly how your UAE salary is structured under MOHRE rules.
UAE salaries split into basic salary and allowances (housing, transport, food, etc.). The standard structure is roughly basic 50–60% of gross, housing 25–30% of basic, transport ~10% of basic. There is no personal income tax: your full gross is your take-home, minus any voluntary loan deductions or (for UAE nationals) the 5% GPSSA pension contribution. Crucially, end-of-service gratuity is calculated on basic salary only, so the higher your basic relative to allowances, the higher your gratuity accrues. Salaries must be paid via the Wage Protection System (WPS) within 15 days of the due date.
AED 15,000 / month, 2026 / year
Typical UAE: 50 to 60% of gross. Higher basic means higher gratuity accrual.
Indicative figures based on standard UAE practice and Federal Decree-Law 33/2021. For binding contract or payroll advice, consult a UAE-licensed HR or legal advisor.
Typical UAE salary structure
A common employment-contract breakdown for a mid-level expatriate role:
| Component | % of gross (typical) | Counts for gratuity? |
|---|---|---|
| Basic salary | 50–60% | Yes |
| Housing allowance | 15–25% | No |
| Transport allowance | 5–10% | No |
| Other allowances (utilities, education, food) | 5–15% | No |
Why basic % matters: a salary of AED 20,000 gross with basic = 60% (AED 12,000) accrues twice the gratuity of the same gross with basic = 30% (AED 6,000). When negotiating contracts, ask for as high a basic as possible if you plan to stay 5+ years.
UAE overtime rates (Article 19 of Federal Decree-Law 33/2021)
| Overtime scenario | Rate | Basis |
|---|---|---|
| Daytime overtime | 1.25× | Hourly basic salary |
| Night overtime (10 PM – 4 AM) | 1.50× | Hourly basic salary |
| Friday work | 1.50× OR substitute rest day | Hourly basic salary |
| Public holiday work | 1.50× + day off | Hourly basic salary |
Hourly basic rate = (monthly basic ÷ 30 ÷ 8). Overtime is capped at 2 hours per day except in specific cases.
GPSSA: pension contributions for UAE nationals
UAE national private-sector employees contribute to the General Pension and Social Security Authority. Expatriate workers do NOT contribute (they receive end-of-service gratuity instead).
| Contribution | % of pensionable wage | Paid by |
|---|---|---|
| Employee contribution | 5% | UAE national worker (deducted from salary) |
| Employer contribution | 12.5% | Employer |
| Government contribution | 2.5% | UAE Federal Government |
| Total to GPSSA | 20% | n/a |
Pensionable wage = basic + housing + social allowances (specific schedule). Minimum wage for UAE nationals: AED 6,000/month from 1 January 2026.
Related reading
- UAE gratuity calculator how much you accrue per year
- Pro-rata gratuity on resignation
- UAE mortgage calculator what your salary qualifies for
- DEWA bill calculator
Frequently asked questions
Basic salary is the fixed amount in your employment contract for the work itself, excluding allowances. Gross salary is basic plus all allowances (housing, transport, utilities, food, etc.). Crucially: end-of-service gratuity is calculated on basic salary only, never on gross. A common UAE structure is basic 50–60% of gross, housing 25–30% of basic, transport 10% of basic, with other allowances making up the rest.
WPS is the mandatory electronic salary transfer system run by MOHRE (Ministry of Human Resources and Emiratisation) in partnership with the UAE Central Bank. All private-sector employers must pay salaries through WPS into employee bank accounts. Salaries must reach the employee's account within 15 days of the contractual due date; beyond that, the company is flagged by MOHRE and faces fines and visa-issuance suspension.
No. There is no personal income tax in the UAE for residents or expatriates. Your take-home is your full gross salary after any voluntary deductions (loan repayments, contributions to GPSSA for UAE nationals, etc.). The 9% corporate tax (effective June 2023) applies to business profits over AED 375,000, not to individual salaries.
For UAE nationals in the private sector, the minimum wage rose to AED 6,000/month effective 1 January 2026 (per a 2025 MOHRE directive). For expatriate workers, there is no statutory minimum wage, though the issuing bank typically requires a minimum salary (often AED 4,000) to issue an account, and visa-category minimums apply (e.g. domestic worker visa, skilled worker visa thresholds).
Yes. UAE nationals contribute to the General Pension and Social Security Authority (GPSSA): 5% employee contribution, 12.5% employer contribution, plus 2.5% from the government, totalling 20% of pensionable wage. Expatriate workers do not contribute to GPSSA; instead they receive end-of-service gratuity at termination.
Per Federal Decree-Law 33/2021 Article 19: overtime hours are paid at 1.25× the hourly basic rate. Overtime worked between 10 PM and 4 AM is paid at 1.5× hourly basic rate. Friday work (the official weekly rest day for most employees) is paid at 1.5× or compensated with a substitute rest day. Senior managers and certain executive roles are typically exempt from overtime entitlement.