UAE Salary Breakdown Calculator (2026)
Deconstruct your monthly gross package into basic pay (typically 60%), housing, transport, and utilities allowances. Analyze the long-term impact on your end-of-service gratuity and overtime wage base.
UAE Salary & Allowance Calculator
Deconstruct your monthly employment package into basic salary vs allowances
Deconstructing UAE Employment Contract Salaries
In the United Arab Emirates private sector, compensation packages are divided into distinct component lines. Unlike jurisdictions that use a single flat gross wage, your official Ministry of Human Resources and Emiratisation (MOHRE) contract splits your monthly remuneration into Basic Salary and separate Allowances.
Why the Basic Salary Percentage Is Critical
All statutory employment benefits established under Federal Decree-Law No. 33 of 2021 are computed strictly from your Basic Salary:
Calculated as 21 to 30 days of basic salary per year served. Allowances are legally excluded.
Hourly overtime premiums (+25% daytime, +50% night) are derived from the basic hourly rate.
Payouts for accrued but unused leave days upon contract conclusion use the daily basic wage.
Standard Package Allocation Model
| Component | Standard Share | Purpose & Practical Function |
|---|---|---|
| Basic Salary | 60% | Core remuneration for contractual duties; baseline for all statutory end-of-service calculations. |
| Housing Allowance | 25% – 30% | Stipend intended to cover residential tenancy leases and Ejari accommodation costs. |
| Transport Allowance | 10% – 15% | Covers vehicle leasing, fuel consumption, Salik toll tariffs, or public transit passes. |
Frequently Asked Questions
Q: Can an employer set my basic salary at 20% and allowances at 80%?
A: While the law does not prescribe a rigid minimum ratio, arbitrarily depressing the basic salary is heavily scrutinized during labour tribunal disputes if intended to circumvent statutory gratuity obligations.
Q: Is income tax deducted from monthly salaries in the UAE?
A: No. The UAE maintains a 0% personal income tax regime for resident and expat wage earners.