How it is calculated
Pension contribution (UAE nationals)
- Calculated on the "contribution salary": basic pay plus fixed monthly allowances such as housing and cost of living.
- Joined from 2 October 2023 (GPSSA) or 1 December 2023 (Abu Dhabi Pension Fund): 11% employee share.
- Registered before those dates: 5% employee share.
- GPSSA minimum contribution salary is AED 3,000; the private-sector maximum is AED 70,000.
End-of-service gratuity (expats, private sector)
21 days of basic pay for each of the first five years, 30 days for each year after, once at least one year is completed, capped at two years’ pay. Daily wage = basic ÷ 30.
Worked example
An expat with a basic salary of AED 12,000 after 7 years: daily wage 400, gratuity = (5 × 21 + 2 × 30) × 400 = 165 × 400 = AED 66,000.
Frequently asked questions
Is there income tax on salaries in the UAE?
No personal income tax applies to salaries. Corporate tax does not affect employees.
Is anything deducted from expat salaries?
There is no mandatory pension for expats, but they are entitled to an end-of-service gratuity.
Is gratuity based on total salary?
No — on the last basic salary only, excluding allowances.
What about GCC nationals?
They fall under the GCC extension scheme at their home-country rates, which this calculator does not cover.
Rules last checked: 2026-10