UAE Payroll & Monthly Salary Calculator
Work out a month's pay: basic salary and allowances, plus overtime and bonus, less unpaid days and deductions. UAE salaries carry no income tax. Decree-Law 33 of 2021, Articles 1, 19, 22, 25 and 33, checked November 2026.
- Monthly salary
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- Unpaid days
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- Overtime
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- Bonus and other pay
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- Gross pay
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- Deductions
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- Deduction limits
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- Gratuity to set aside
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Estimate only. Not legal advice. Gratuity to set aside is for foreign full-time workers. DIFC and ADGM have their own employment laws; see the DIFC calculator.
How payroll is calculated in the UAE
- Monthly wage = basic salary + cash allowances (Article 1). The contract sets the amounts (Article 22).
- Unpaid days: take off monthly wage ÷ 30 × the days. No wage is due for unpaid leave or absence (Articles 33 and 34). The ÷ 30 is a convention; the law sets no divisor.
- Overtime: add basic ÷ 30 ÷ 8 × 1.25 for each hour, × 1.5 between 10 pm and 4 am. Rest-day and holiday hours earn the full hourly wage plus 50% of the basic (Articles 19 and 28).
- Bonus or commission: add what is due this month.
- Deductions: take off only the 8 cases in Article 25, at most 50% of the wage in total.
- No income tax is taken off. Salary is paid on its due date through WPS (Executive Regulations, Article 16).
- • Monthly wage: 6,000 + 2,500 + 500 = AED 9,000.00
- • 2 unpaid days: 9,000 ÷ 30 × 2 = AED 600.00 off
- • 10 overtime hours: 6,000 ÷ 30 ÷ 8 × 1.25 × 10 = AED 312.50
- • Bonus AED 500: gross pay AED 9,212.50
- • Loan repayment AED 1,000: net pay AED 8,212.50
- • Employer: gratuity to set aside AED 350.00 a month (21 days a year on the basic)
Frequently asked questions
How is salary calculated in the UAE?expand_more
Basic salary plus cash allowances is your monthly wage (Article 1). Take off pay for unpaid days, add overtime and any bonus, then take off the deductions the law allows (Article 25). Basic AED 6,000 plus AED 3,000 allowances, with 2 unpaid days, 10 overtime hours, a AED 500 bonus and a AED 1,000 loan repayment, pays AED 8,212.50 net.
Is income tax taken from salaries in the UAE?expand_more
No. The UAE has no tax on the income of individuals, and employment income is outside Corporate Tax (FTA Corporate Tax General Guide). Nothing may be deducted from the wage except the cases in Article 25 of the labour law.
How is salary worked out for part of a month?expand_more
The law sets no method. The usual one is monthly wage ÷ 30 × the days not worked; some payrolls divide by the days in that month. Enter the days before you joined or after you left as unpaid days.
What can my employer deduct from my salary?expand_more
Only the 8 cases in Article 25, such as loan repayments, overpaid salary (at most 20%), fines (at most 5%) and pension contributions. All deductions together may not exceed 50% of the wage.
Is overtime paid on basic or total salary?expand_more
On a normal working day, on the basic wage plus at least 25%, or 50% between 10 pm and 4 am (Article 19). Work on a rest day or public holiday earns the full wage plus at least 50% of the basic, or another day off (Articles 19 and 28).
When must salary be paid?expand_more
On the due dates in your contract, through the Wage Protection System (WPS) or another system the Ministry approves (Article 22 and Executive Regulations, Article 16). It is paid in dirhams unless the contract agrees another currency.
How much gratuity should an employer set aside each month?expand_more
For a foreign full-time worker, gratuity is 21 days of basic pay a year for the first 5 years and 30 days after (Article 51). Spread over 12 months, that is about 5.83% of the basic a month, then 8.33%: on a AED 6,000 basic, AED 350.00 and later AED 500.00. UAE nationals get end of service under the pension law instead.
Source
UAE Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations: Article 1 (wage), Articles 17 and 19 (working hours and overtime), Article 22 (paying the wage), Article 25 (deductions), Article 28 (holidays), Articles 33 and 34 (unpaid leave and absence) and Article 51 (gratuity); the Executive Regulations (Cabinet Resolution No. 1 of 2022), Articles 15 and 16; and the FTA Corporate Tax General Guide (no tax on employment income). The daily wage divisor and the monthly gratuity figure are conventions, not rules in the text. Always confirm with MOHRE or a qualified adviser. Checked against the official text in November 2026.
Read the official text:Federal Decree-Law No. 33 of 2021 (UAE Legislation portal) · Cabinet Resolution No. 1 of 2022, Executive Regulations (UAE Legislation portal) · FTA Corporate Tax General Guide (PDF)