Why your basic salary matters
Most UAE packages split pay into a basic salary and allowances. The split doesn't change your monthly take-home, but several entitlements use basic salary only:
- Gratuity: 21 days of basic per year for your first five years, then 30 days per year.
- Unused leave pay-outs: paid at your daily basic.
- Overtime: worked out from your hourly basic.
Example
Two jobs both pay AED 15,000 a month.
There's no legal rule for how a package must be split. When comparing job offers, ask for the basic figure, not just the total. Your contract and WPS payslip show your exact split.
Common questions
Where do I find my basic salary?
In your employment contract and on your WPS payslip. It's usually listed separately from housing and other allowances.
Is there a minimum basic salary share in the UAE?
No. The law doesn't set how a package is split between basic and allowances. It varies by employer.
Is there income tax on salary in the UAE?
No. The UAE doesn't tax employment income for individuals.
Why do employers keep basic salary low?
Gratuity, leave pay-outs and overtime are worked out from basic pay, so a lower basic reduces those costs.
Sources
Related calculators
This calculator gives an estimate for guidance only. It is not legal or financial advice. Check important figures with the relevant authority or a qualified adviser.