Basic salary vs total package
UAE job offers split pay into a basic salary and allowances such as housing, transport and phone. The split matters more than most people expect. End-of-service gratuity, overtime and leave encashment are calculated on the basic salary only, so two jobs with the same total package can pay very different amounts when you leave. Many employers set the basic at 50 to 60% of the package. If yours is much lower, the calculator flags it so you can factor it in or negotiate.
How the daily and hourly wage are worked out
For monthly-paid staff, the UAE convention is to divide the monthly wage by 30 to get the daily wage, whatever the length of the month. That is the same basis used for gratuity and for deducting unpaid leave. The hourly wage is the daily wage divided by your normal working hours per day. For example, a basic of AED 6,000 gives a daily basic wage of AED 200 and, on an 8-hour day, an hourly basic wage of AED 25.
Overtime pay under UAE Labour Law
Normal working hours in the private sector are up to 8 hours a day and 48 hours a week. Overtime must be paid at the basic hourly wage plus at least 25%. Overtime worked between 10 pm and 4 am is paid at the basic hourly wage plus at least 50%, except for shift workers. If you work on your weekly rest day, your employer must give you another day off or pay the basic wage for that day plus at least 50%. Overtime is generally limited to 2 hours a day. With a basic hourly wage of AED 25, normal overtime pays AED 31.25 an hour and night or rest-day overtime pays AED 37.50.
Unpaid leave and salary deductions
When you take unpaid leave, the employer usually deducts one day's wage, the monthly salary divided by 30, for each day. Other deductions are tightly limited by law and must not exceed 50% of the wage in total. If a deduction on your payslip looks wrong, ask HR for the calculation and compare it with this one. You can raise unresolved salary complaints with the Ministry of Human Resources and Emiratisation through its app or call centre.
No income tax in the UAE
There is no personal income tax on salaries in the UAE, so for most expatriates the pay calculated here is also the amount paid into the bank through the Wage Protection System. UAE and GCC nationals contribute to a pension scheme, which is deducted from their salary and is not included here. Corporate tax applies to businesses, not to employees' salaries.