Break down your total salary into basic + allowances. See how your salary structure affects gratuity, overtime, and leave pay.
Recommended: 40-60% for optimal benefits
Only basic salary is used for gratuity, overtime, and leave encashment calculations under UAE labor law. Higher basic = higher benefits.
Enter your salary details and click Calculate to see your breakdown
Recommended basic salary percentage of total compensation
Gratuity is calculated using basic salary excluding all allowances
Gratuity rate: 21 days/year (1-5 yrs), 30 days/year (5+ yrs)
Standard overtime rate (basic hourly wage + 25%)
Night overtime rate (10 PM - 4 AM) and holidays
Minimum salary for Emiratis in private sector (2026)
In the UAE, your total compensation package typically consists of a basic salary plus allowances (housing, transport, etc.). How you split these components significantly impacts your statutory benefits like gratuity, overtime, and leave pay.
| Component | Typical % | Description |
|---|---|---|
| Basic Salary | 40-60% | Fixed contractual wage, basis for statutory calculations |
| Housing Allowance | 20-40% | Accommodation support, often paid separately |
| Transport Allowance | 10-15% | Commuting costs, may include car allowance |
| Other Allowances | Varies | Phone, education, meal allowances, etc. |
Under UAE Federal Decree-Law No. 33 of 2021, several statutory calculations are based only on basic salary:
Important: A higher basic salary percentage means higher gratuity, overtime, and leave encashment. If your basic is only 30% of total salary, your end-of-service benefits will be significantly lower than someone with 60% basic on the same total package.
Article 1 of Federal Decree-Law No. 33 of 2021 defines basic wage as:
"The wage stipulated in the employment contract, which is paid to the worker in consideration of his work under the employment contract... and which does not include any other allowances or benefits in-kind."
Common questions about UAE salary structure and calculations.
Basic salary is the fixed contractual wage stated in your employment contract, excluding all allowances. Total salary (or gross salary) is basic salary plus all allowances like housing, transport, and others. Under UAE law (Federal Decree-Law No. 33 of 2021), basic salary is defined as the wage paid 'in consideration of work' and explicitly excludes allowances and benefits in-kind.
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