UAE Employee Cost Calculator 2026
What does an employee really cost your company? Salary plus visa fees, health insurance, and gratuity accrual — calculated per month and per year.
Last updated: June 11, 2026 · Government fees vary by company category and emirate — all inputs are editable
Housing, transport, and other fixed allowances.
Work permit, entry permit, medical, Emirates ID, stamping. Varies by company category.
Mandatory for all employees across the UAE since January 2025.
Annual flight ticket, education allowance, bonuses, ILOE, etc.
Agency fees, job board spend. Shown separately — by law this can never be charged to the employee.
True Monthly Cost of Employment
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What Does an Employee Really Cost in the UAE?
The true cost of a UAE employee is gross salary plus 6-12% in statutory and visa-related costs: government fees for the work permit and residency cycle, mandatory health insurance, and the gratuity liability that accrues from day one. Budgeting only the salary understates your real cost of hiring.
UAE Visa & Work Permit Costs 2026 (Mainland)
| Item | Typical Cost (AED) | Notes |
|---|---|---|
| MOHRE work permit | 250 – 3,450 | By company category & skill level |
| Entry permit | 500 – 1,150 | Higher if applied inside country |
| Status change | 550 – 750 | If hired inside UAE, incl. typing fees |
| Medical fitness test | 320 – 750 | Standard vs express |
| Emirates ID (2 years) | ~370 | Per visa cycle |
| Residence visa issuance | 500 – 600 | Electronic — no passport stamp since 2022 |
| Typical total per cycle | 4,000 – 7,500 | By company category; excl. insurance & deposits |
Fees change and vary by company category, skill level, and emirate; free zones set their own packages. Confirm current amounts with MOHRE, ICP, or your free zone authority before budgeting.
Worked Example (2026)
Mid-level hire: AED 8,000 basic + AED 4,000 allowances, AED 5,500 visa cycle (2 years), AED 1,500/year insurance:
Gross salary = AED 12,000.00 /mo
Gratuity accrual = 8,000 × (21÷30) ÷ 12 = AED 466.67 /mo
Visa & permits = 5,500 ÷ 24 = AED 229.17 /mo
Health insurance = 1,500 ÷ 12 = AED 125.00 /mo
True cost = AED 12,820.83 /mo (AED 153,850 /yr — 6.8% above gross)Costs Employers Often Forget
- Gratuity liability accrues from day one — even though it is paid at exit. Use the gratuity calculator to see the full end-of-service amount building up.
- Recruitment costs cannot be recovered from the employee — charging them is illegal under Article 6 of the labour law (fines of AED 100,000 up to AED 1 million since the August 2024 amendments).
- Salary structure drives several costs — gratuity and overtime are calculated on basic salary, so the basic-to-allowance split matters. Model it with the salary structure calculator.
- ILOE unemployment insurance (AED 60-120/year + VAT) is legally the employee's to pay, though many employers cover it as a benefit — alongside WPS bank charges and visa renewal admin time.
- Onboarding compliance — contract registration deadlines, insurance-before-visa sequencing, and offer-letter matching. See the UAE onboarding checklist.
Official sources: u.ae — work permit fees · MOHRE — Basic Health Insurance Scheme · ILOE. Figures verified June 2026.
Employee Cost FAQs
How much does it cost to hire an employee in the UAE?
Beyond gross salary, employers typically pay AED 4,000-7,500 in government fees per 2-year visa cycle depending on company category (work permit, entry permit, medical, Emirates ID, residence visa issuance), health insurance from AED 320 per year (federal basic scheme) up to AED 10,000+ for comprehensive plans, and gratuity accrual of roughly 5.8% of basic salary. In total, expect roughly 6-12% on top of gross salary for a typical hire, plus any recruitment costs.
What is included in UAE employment visa costs?
A standard mainland visa cycle includes: MOHRE work permit (AED 250-3,450 depending on company category and skill level), entry permit (AED 500-1,150, higher when applied inside the country), change of status if hired inside the UAE (AED 550-750 including typing fees), medical fitness test (AED 320-750), Emirates ID (~AED 370 for 2 years), and residence visa issuance (AED 500-600). Free zone fees differ and are set by each zone's authority.
Who pays visa and recruitment costs in the UAE — employer or employee?
The employer. Under Article 6 of Federal Decree-Law No. 33 of 2021, recruitment and visa costs must be borne by the employer and can never be charged to or recovered from the employee. Deducting these costs from salary or final settlement is illegal — since the August 2024 amendments, labor law fines range from AED 100,000 up to AED 1 million per violation.
How do I calculate gratuity as a monthly cost?
Gratuity accrues at 21 days of basic salary per year of service for the first 5 years (30 days per year after). As a monthly accrual: basic salary × (21 ÷ 30) ÷ 12, which is roughly 5.8% of basic salary. For example, on AED 10,000 basic, accrue about AED 583 per month to cover the future end-of-service liability.
Is health insurance mandatory for employees in the UAE?
Yes. Since January 1, 2025, health insurance is mandatory for all private sector employees across all seven emirates, and it must be in place before residency visa issuance. The federal Basic Health Insurance scheme starts at AED 320 per year; Dubai basic plans typically cost AED 550-800, and comprehensive plans for senior roles commonly run AED 3,000-10,000+.
Do visa costs differ between mainland and free zones in UAE?
Yes. Mainland visa costs are set by MOHRE and ICP and vary by company category (a Category 1 company pays far less per work permit than Category 3). Free zones set their own packages — typically AED 3,000-7,000 per visa cycle depending on the zone. Note that since December 2025, free zone employment permits are also capped at 2 years, same as mainland. Always confirm current fees with MOHRE or your free zone authority.
Know Your Workforce Costs in Real Time
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Live Gratuity Liability
See the accrued end-of-service liability for every employee, updated automatically.
Visa & Document Tracking
Automatic alerts before work permits, visas, Emirates IDs, and insurance expire.
Payroll Cost Reports
True cost-of-workforce reporting across branches, departments, and projects.
WPS-Compliant Payroll
SIF generation and salary transfers that keep you MOHRE-compliant.