How much an employee really cost your company?
Salary + employment visa fees, health insurance, and gratuity accrual – calculated per month and per year.
Salary is only part of the bill. See the true monthly and annual cost of hiring in UAE - gross salary plus visa & permit fees, mandatory health insurance, and the gratuity liability that accrues from day one.
Salary
Housing, transport, and other fixed allowances.
Visa & Work Permit
Work permit, entry permit, medical, Emirates ID, stamping varies by company category.
Insurance & Benefits
Mandatory for all employees across the UAE since January 2025.
Flight ticket, education allowance, bonuses, ILOE, etc.
Recruitment (one-time, optional)
Agency fees, job board spend. Shown separately - by law this can never be charged to the employee.
True Monthly Cost of Employment
AED 0.00
AED 0 / yr +0% above gross
Government fees vary by company category, emirate, and free zone — all figures above are editable estimates. Confirm current amounts with MOHRE, ICP, or your free zone authority before budgeting.
The true cost of an employee is more than their monthly salary. Salary is the number on the offer letter but it's rarely the number on your P&L. Employers may also need to budget for allowances, visa and work permit expenses, health insurance, end-of-service gratuity and other contractual or employment-related costs. Most UAE employers end up paying somewhere between 6% and 12% above gross pay. Our Employee Cost Calculator helps UAE businesses estimate these expenses and understand the monthly and annual cost of employing an employee.
| Fee component | Typical range (AED) | What changes it |
|---|---|---|
| Labour card / work permit | 250 – 3,450 | MOHRE company category (1–3) and skill level |
| Entry permit | 500 – 1,150 | Higher when applied for from inside the UAE |
| Status change | 550 – 750 | Only if hiring someone already resident in the UAE |
| Medical fitness test | 320 – 750 | Standard vs. express turnaround |
| Emirates ID (2-year) | ~370 | Fixed per visa cycle |
| Residence visa issuance | 500 – 600 | Fully electronic since 2022, no passport stamping fee |
| Typical full cycle | 4,000 – 7,500 | Excludes insurance and refundable deposits |
Free zones price their own packages separately from MOHRE, and figures shift with policy updates. Treat this table as a planning range, not a quote, and confirm exact fees with MOHRE, ICP, or your free zone authority before finalizing a budget.
Official references: u.ae — work permit fees · MOHRE — Basic Health Insurance Scheme · ILOE. Fee ranges and rules are subject to change - always confirm current figures before budgeting.
Frequently asked questions about Employee Cost Calculator UAE.
An Employee Cost Calculator estimates the total cost a company incurs to employ an employee, beyond the basic monthly salary. Depending on the inputs, the calculation can include salary, allowances, visa and work permit expenses, health insurance, end-of-service gratuity, benefits and other employer-related costs. It helps businesses understand the actual monthly and annual cost of an employee.
To calculate the total employee cost in the UAE, start with the employee's basic salary and regular allowances, then add applicable employer costs such as visa and work permit expenses, health insurance, end-of-service gratuity accrual and other benefits or employment-related expenses. The exact cost varies depending on the employee, company category, emirate, insurance plan and benefits provided.
A complete employee cost calculation may include basic salary, housing and other allowances, visa and work permit expenses, Emirates ID and medical-related costs, health insurance, end-of-service gratuity provision, annual air tickets or other contractual benefits, recruitment costs and other employer-paid expenses. Some costs are recurring while others occur periodically, so annualising them can provide a more realistic monthly employment cost.
No. An employee's salary is only one part of the employer's total employment cost. Businesses may also incur costs for visas, work permits, health insurance, end-of-service benefits, recruitment, employee benefits and other HR-related expenses. Calculating the fully loaded employee cost gives employers a more accurate figure for budgeting and workforce planning.
The employer. Under Article 6 of Federal Decree-Law No. 33 of 2021, recruitment and visa costs must be taken care by the employer and can never be charged to the employee. Deducting these costs from salary or final settlement is illegal in UAE.
Yes. The calculator is suitable for startups, SMEs, and larger businesses to estimate their corporate tax liability. It provides a quick indication of the tax payable based on the current UAE corporate tax rates.
