UAE Employee Cost Calculator
Calculate the total monthly cost of hiring an employee in the UAE
Hidden Costs of Hiring
Many employers only look at the monthly salary, but the true cost includes mandatory provisions:
- Health Insurance: Mandatory for all employees in Dubai and Abu Dhabi. (Annual cost AED 650 - 3,000+)
- Visa Costs: Approximately AED 7,000 every 2 years, including medical, ID, and government fees.
- Gratuity: You must accrue 21 days of basic salary for every year worked as an end-of-service benefit.
Employer Obligations 2026
As of January 1, 2025, health insurance is mandatory for all workers in the UAE. Employers are responsible for the full cost of the visa and medical insurance.
Note: Workmens Compensation (Work Injury Insurance) is also mandatory for some sectors and highly recommended for all.
Frequently Asked Questions
Under UAE labour law, the employer is responsible for all costs related to recruitment and visa processing of the employee. Retaining these costs from the employee's salary is illegal.
Yes, as of 2025, all domestic workers (maids, drivers, etc.) must have a mandatory health insurance plan provided by their sponsor.
Divide your employee's basic monthly salary by 30 to get the daily rate. Multiply by 21 (days per year) and then divide by 12 to get the monthly accrual amount.