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Salary Calculator

Break down your gross salary into Basic and Allowances, and estimate your annual End-of-Service Gratuity accrual.

AED

Salary Structure Breakdown

Presets:

Net Take-Home Salary

0.00 AED

(0% Income Tax in Gulf)

Basic Salary (60%)0.00 AED
Housing (30%)0.00 AED
Transportation (10%)0.00 AED

How is a Gulf Salary Structured?

Unlike many Western countries, most countries in the Gulf Cooperation Council (GCC) — including the UAE, Saudi Arabia, Qatar, and Kuwait — currently levy 0% personal income tax on salaries. This means your Gross Salary is exactly equal to your Net Take-Home Salary.

Basic vs. Allowances

While your take-home pay is not taxed, your total salary is usually divided into different components:

  • Basic Salary: The core foundation of your pay. This number is critical because your End-of-Service Gratuity (EOSB) is calculated only on your Basic Salary.
  • Housing Allowance: Given to cover rent and accommodation.
  • Transportation Allowance: Given to cover daily commute expenses.

A very common standard structure in the UAE is 60% Basic, 30% Housing, and 10% Transportation. However, some employers reduce the Basic Salary to 50% or even 40% to lower their eventual gratuity payout liability. It's important to negotiate your Basic Salary percentage carefully.

Frequently Asked Questions