Why Gross and Net Are the Same for Expats
The UAE has no tax on employment income, federal or emirate level. Corporate tax and VAT exist, but they do not touch your payslip. Expatriates are not members of the GPSSA pension scheme, so nothing is deducted for social security either.
What can appear on a payslip: unpaid leave, salary advances being repaid, and fines or loans owed to the employer. Those are personal items, not taxes.
Pension for UAE and GCC Nationals
Emiratis hired from 31 October 2023 fall under Federal Decree-Law No. 57 of 2023. Total contributions are 26% of pensionable salary:
| Party | Share |
|---|---|
| Employee | 11% |
| Employer | 15% (12.5% plus 2.5% from the government for private sector pay under AED 20,000) |
| Total | 26% |
The pensionable salary counts between AED 3,000 and AED 70,000 a month (Abu Dhabi Pension Fund members up to AED 100,000). On AED 15,000 the employee share is AED 1,650 a month. Citizens of other GCC states pay into their home scheme under the GCC extension programme, at their own country's rate.
End of Service Gratuity Explained
Gratuity is not a deduction. It is a lump sum your employer owes you when you leave after at least one year, worked on your last basic salary:
- 21 days of basic pay for each of the first five years
- 30 days of basic pay for each year after that
- No more than two years of pay in total
With basic pay at 60% of AED 15,000, so AED 9,000 a month, gratuity reaches AED 18,641 after 3 years, AED 31,068 after 5 years and AED 75,452 after 10 years. Enter your own basic share and years in the calculator.
Basic Salary, Housing and Allowances
UAE packages are usually split into basic salary plus allowances for housing, transport and other costs. All of it is paid in cash and none of it is taxed, but only the basic part counts for gratuity and often for overtime. Two offers with the same gross can therefore differ by thousands of dirhams at the end of a contract.
Some employers provide a flat or school fees instead of an allowance. Put a cash value on those before you compare, and check the Cost of Living Calculator for rent and price levels.
Salary Levels Compared for Expats and Nationals
| Gross a month | Expat net a month | UAE national net a month | Expat gratuity after 5 years (60% basic) |
|---|---|---|---|
| AED 5,000 | AED 5,000 | AED 4,450 | AED 10,356 |
| AED 10,000 | AED 10,000 | AED 8,900 | AED 20,712 |
| AED 15,000 | AED 15,000 | AED 13,350 | AED 31,068 |
| AED 25,000 | AED 25,000 | AED 22,250 | AED 51,781 |
| AED 50,000 | AED 50,000 | AED 44,500 | AED 103,562 |
| AED 80,000 | AED 80,000 | AED 72,300 | AED 165,699 |
Above AED 70,000 a month the national's pension stops growing, so the gap between the two columns stays at AED 7,700.
What Is Taxed and What Is Not
- Not taxed: salary, allowances, bonuses, gratuity and benefits in kind for individuals.
- Taxed in your home country: if you remain tax resident there (for example US citizens, or people who keep a home abroad), your UAE pay may be taxable at home.
- VAT at 5% applies to most spending, which matters when you compare living costs.
Assumptions and Limits
- UAE nationals: the 2023 federal scheme at 11%, on the full gross between the limits; earlier members of older schemes may pay different rates.
- Gratuity uses the private sector rules for full time staff and a day's pay of basic × 12 ÷ 365; employers in DIFC, ADGM or on the alternative savings scheme use other rules.
- No deductions for loans, fines or unpaid leave.
Comparing with an offer in Israel or Egypt? See the Israel Gross to Net Calculator and the Egypt Gross to Net Calculator.
Sources: UAE government portal (u.ae) pages on pensions for UAE citizens and end of service benefits in the private sector, General Pension and Social Security Authority (gpssa.gov.ae). Rates for 2026.
Frequently Asked Questions
Is there income tax on salaries in Dubai?
No. Neither the federal government nor any emirate taxes employment income, so an expat's net pay equals gross pay.
How much do UAE nationals pay for pension?
11% of pensionable salary under the 2023 federal law, counted between AED 3,000 and AED 70,000 a month.
How is end of service gratuity calculated?
21 days of basic salary per year for the first five years and 30 days per year after that, capped at two years of pay, once you have worked a full year.
Does the housing allowance count for gratuity?
No. Gratuity is worked on basic salary only, so allowances do not increase it.
What does AED 20,000 a month gross mean in net?
For an expat, AED 20,000 net. For a UAE national under the 2023 scheme, AED 17,800.
Do GCC nationals working in the UAE pay contributions?
Yes, to their home country pension scheme through the GCC extension programme, at that country's employee rate.