Estimate the true annual cost of employing someone in the UAE — beyond basic salary. Add allowances, bonus, medical insurance, visa, flights, recruitment and equipment, then spread one-off costs over 1 to 3 years.
Free to use. No email address or sign-up required — everything is worked out in your browser. All figures are estimates you enter; the calculator does not add statutory amounts it cannot reliably calculate.
Enter the monthly basic salary (and any allowances) to see the estimated annual and monthly employment cost, with a full breakdown.
Namya helps UAE SMEs manage employee information, salary records, documents, leave and workforce reporting in one place.
See Namya for UAE SMEsBudgeting a hire on basic salary alone understimates the real cost. In the UAE, an employee's true cost typically includes monthly salary and allowances, an annual bonus, medical insurance, visa and work permit fees, flight allowance, recruitment and equipment. Some of these are recurring each year; others, like recruitment and a laptop, are one-off costs spread over the employee's likely tenure. This calculator adds the amounts you enter so you can see an estimated annual and monthly figure, plus a clear breakdown.
Salary is the cash paid to the employee — basic salary, allowances and bonus. Total employment cost adds everything else you spend to employ them: medical insurance, visa, flights, recruitment, equipment, training and other benefits. The difference is the "employment cost above salary" shown in the result, expressed as a percentage of annual cash compensation. A 15% figure means the true cost is roughly 15% more than the salary package itself. Knowing this uplift helps you price a role accurately before you hire.
The main cost categories beyond salary for a UAE SME are:
These costs vary widely, so the calculator asks for your actual or estimated amount rather than assuming fixed figures. End-of-service gratuity is a real UAE cost too, but it depends on length of service and final basic salary — use the UAE gratuity calculator to estimate that separately.
Consider an employee with AED 8,000 basic salary, AED 3,000 housing, AED 1,000 transport and AED 500 other allowance per month, plus a AED 10,000 annual bonus. Suppose the employer pays AED 2,500 medical insurance, AED 1,500 visa, AED 3,000 flights, a AED 6,000 one-off recruitment fee and AED 5,000 for a laptop, both spread over 2 years.
For 25 similar employees, that scales to roughly AED 4.31 million per year — illustrating why a team view matters when planning headcount.
As headcount grows, small per-employee costs compound. The optional team section multiplies a single cost profile by the number of similar employees for a quick total. For mixed roles — different salaries, allowances or benefits — calculate each role separately and add the annual totals. Spreading one-off costs over longer periods lowers the annual figure for roles you expect to keep for several years, which gives a more realistic picture than charging the full cost in year one. Tools that hold salary records, documents and reporting in one place, like Namya, make it easier to keep these figures current as your team changes.
An employee's true cost is usually well above their salary. As well as monthly salary and allowances, most UAE employers pay annual medical insurance, visa and work permit fees, flight allowance, recruitment costs and equipment. This calculator adds the amounts you enter so you can see an estimated annual and monthly total, including one-off costs spread over 1 to 3 years.
No. End-of-service gratuity is a real UAE cost, but it depends on the employee's length of service and final basic salary, which this calculator does not collect. Gratuity accrues over time and is paid on leaving. Use the separate UAE gratuity calculator to estimate the gratuity portion for a specific employee.
Employer-provided medical insurance is a legal requirement in Dubai and Abu Dhabi, and is standard practice across the UAE. Visa and work permit fees are government charges for employing a non-national worker. Both are required, but the exact amounts vary by visa type, emirate and insurer, so this tool asks you to enter your actual or estimated figure rather than assuming a fixed amount.
Salary (plus allowances and bonus) is the cash paid to the employee. Total employment cost adds the benefits and costs of employing them — medical insurance, visa, flights, recruitment, equipment, training and other benefits. Total employment cost is always higher than salary alone, which is why budgeting on salary understates what a hire really costs.
Recruitment and equipment are paid up front but the employee stays for several years, so the calculator lets you spread these one-off costs over 1, 2 or 3 years. The amount is divided by the number of years and added to each year's annual cost, so a 6,000 AED recruitment fee spread over 3 years adds 2,000 AED per year.
The UAE does not levy personal income tax on employment income, and private-sector expatriate employees are not part of a social security contribution scheme. End-of-service gratuity (not included here — see above) is the main statutory employment cost beyond salary. If your situation differs, for example GCC nationals on a pension scheme, add that contribution under other annual employee costs.
This calculator provides an estimate based on the amounts you enter. It is not legal, tax or HR advice. It does not add end-of-service gratuity, pension or social security contributions, or insurance minimums, because those depend on factors this tool does not collect. Visa, insurance and other costs vary by emirate, visa type, insurer and provider. Always confirm current rates with the relevant UAE authority or your provider before relying on a figure.
See also the UAE gratuity calculator, UAE annual leave calculator and UAE sick leave calculator, or explore the Namya HR platform and pricing.
These tools are part of the free Namya HR toolkit for UAE employers. Each one works in your browser with no sign-up.
