MMizanek

Money Guide · Phase 1

Salary Reality

The UAE has no income tax — but that doesn't mean you keep your salary. This shows what's actually left after the cost of living, and the end-of-service gratuity you're really building (calculated on basic salary, not your package).

Your numbers

example values — edit to yours
Total living cost
AED 10,600
per month
Left each month
AED 4,400
29.3% of salary
Rent burden
33.3%
of salary
Gratuity owed today
AED 18,900
≈ 1.8 months of expenses
The reality

You 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.

Watch out

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.