Split your package and see the basic that drives gratuity.
Basic salary (drives gratuity)
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Housing
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Transport
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Other allowances
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Worked example
Take a package of AED 25,000 a month split 55% basic, 25% housing and 10% transport, leaving 10% as other allowances. The basic portion is 0.55 of 25,000, which is AED 13,750 a month, or AED 165,000 a year. Housing is 0.25 of 25,000, so AED 6,250. Transport is 0.10 of 25,000, so AED 2,500. The remainder, AED 2,500, falls into other allowances. There is no income tax in the UAE, so the full AED 25,000 is paid, but the split still matters because end-of-service gratuity is calculated on the basic salary alone. A package weighted toward allowances looks the same in your bank account today yet builds a smaller gratuity.
Component
Share
Monthly
How it is calculated
The tool multiplies the total monthly package by each percentage you enter to size the basic, housing and transport lines, then treats whatever is left as other allowances so the parts always add back to the full package. None of this changes take-home pay, because the UAE has no personal income tax and no payroll withholding on employment income for expatriates. The reason the split is shown at all is gratuity. Under UAE Labour Law, end-of-service gratuity accrues at 21 days of basic wage for each of the first five years and 30 days a year thereafter, and that calculation uses the last drawn basic only. A common market structure is roughly 50 to 60 percent basic with the rest as allowances, but there is no fixed legal ratio, so two people on the same total package can end up with very different gratuity entitlements.
Frequently asked questions
Why does the basic salary matter in the UAE?
End-of-service gratuity is calculated on the last drawn basic salary only, with allowances excluded. A package weighted heavily toward housing and transport allowances therefore produces a smaller gratuity than the same total package with a higher basic. A common market split is roughly 50 to 60 percent basic, with the rest as allowances, but there is no fixed legal ratio.
Come si calcola la gratifica di fine servizio negli Emirati Arabi Uniti?
La gratifica di fine servizio viene calcolata esclusivamente sullo stipendio base. Per i primi cinque anni di servizio si maturano 21 giorni di salario base per ogni anno, e 30 giorni per anno a partire dal sesto anno. Il calcolo usa il salario giornaliero ottenuto dividendo il mensile base per 30. Il massimo corrisponde a due anni di salario totale.
Qual è la differenza tra stipendio base e pacchetto totale negli EAU?
Il pacchetto totale comprende lo stipendio base più le indennità di alloggio, trasporto e altre voci. Negli Emirati non si applica alcuna imposta sul reddito delle persone fisiche, quindi l'intero importo viene erogato al dipendente. La distinzione rileva però per la gratifica, che si calcola solo sul base salary, non sulle indennità.
Esiste un rapporto fisso tra stipendio base e indennità negli EAU?
No, la legge emiratina non impone una percentuale minima di stipendio base rispetto al pacchetto totale. Il mercato tende a strutturare i pacchetti con una quota base tra il 50% e il 60%, ma la ripartizione è negoziabile tra datore di lavoro e lavoratore. Un base basso riduce la gratifica maturata, mentre un base alto la incrementa nel tempo.