Salary Reality — the honest UAE salary calculator
No income tax — but you still don't keep it all. See what's actually left, and the end-of-service gratuity you're really building.
Your numbers
example values — edit to yoursYou keep 29.3% of your salary — AED 4,400 a month. That's a real surplus. The next question is whether it's being saved on purpose or just sitting in a current account losing value to inflation.
Your gratuity is built on your basic salary (AED 9,000), not your full package. After 3 years you've earned about AED 18,900. That is roughly 1.8 months of your current spending. It is a safety cushion, not a retirement plan.
Basis: Gratuity per UAE Labour Law (Federal Decree-Law No. 33 of 2021): 21 days' basic pay per year for the first 5 years, 30 days' after, minimum 1 year of service, capped at 2 years' total pay. The UAE levies no personal income tax.
Common questions
Does the UAE tax salaries?
No — the UAE has no personal income tax, so your salary is not taxed. But that doesn't mean you keep it all: rent, schooling and living costs take a large share, and 5% VAT applies to most spending. The honest question is what's left each month, not the headline package.
Is gratuity calculated on basic or gross salary?
Basic salary only — not your full package. Under UAE Labour Law (Federal Decree-Law 33 of 2021), end-of-service gratuity is 21 days of basic pay per year for the first five years and 30 days per year after that. A package with a low basic share builds far less gratuity than it looks.
What is a good savings rate in the UAE?
Aim to keep at least 20% of your income. Expat time in the UAE is finite and gratuity won't fund retirement, so under 10% leaves you exposed — one surprise bill can wipe the month. The calculator shows your real rate after honest living costs.