There is no income tax on salaries in the UAE, so an expatriate's net salary is gross salary minus the unemployment insurance premium of AED 5 or 10 a month. UAE nationals also have a pension contribution deducted, which is 11% of the contribution salary for those registered since 31 October 2023.
Step by step
- 1
Set the gross salary
Basic salary and allowances as stated in the contract.
- 2
Unemployment insurance premium
AED 5 a month if basic salary is AED 16,000 or less, and AED 10 if it is higher, under Federal Decree-Law No. 13 of 2022.
- 3
Pension contribution for nationals
11% of the contribution salary, which ranges from AED 3,000 to 70,000, for those registered since 31 October 2023 under Federal Decree-Law No. 57 of 2023, and 5% for those registered earlier under Federal Law No. 7 of 1999.
- 4
Employer share
15% for nationals under the new law, of which the government covers 2.5% when the contribution salary is below AED 20,000.
- 5
Check the emirate
Abu Dhabi has its own pension fund and law, so check its rules.
Not every allowance is part of the contribution salary, so define precisely which ones are included to keep the deduction from changing from one month to the next.
- uae net salary after deductions
- gpssa pension deduction from emirati salary