UAE Salary Breakdown Calculator Widget
Split a UAE pay package into basic salary and allowances and see why the split matters: gratuity, overtime and the payout for unused leave are all calculated on the basic wage alone, so two offers with the same total can be worth very different amounts.
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How it works
UAE offer letters usually split pay into a basic salary and allowances for housing, transport and other items. Federal Decree-Law No. 33 of 2021 defines the basic wage as excluding allowances and benefits in kind, and uses it for three entitlements: the end-of-service gratuity (21 days' basic wage for each of the first five years, 30 days for each year after), the overtime premium, and payment for unused leave when employment ends. The widget totals the package, shows the basic share and lists each entitlement with the base it uses. Gratuity accrual is given in days of basic wage; turning days into dirhams needs a day-rate convention the law does not set, so A2Z does not assume one.
Calculation method
- Total = basic + housing + transport + other allowances
- Basic share = basic / total x 100
- Gratuity accrues 21 days' basic wage a year for years 1-5, 30 days a year after; overtime and unused-leave pay use the basic wage
Worked examples
Typical package
Inputs: Basic AED 9,000; housing 4,500; transport 1,000; other 500
Result: Total AED 15,000; basic share 60%
General rules from the Decree-Law; your contract may define pay components differently.
Limitations
- Does not calculate gratuity in dirhams (see above).
- Contract-specific allowances that a contract defines as part of basic pay are not interpreted.
- Bonuses, commission and annual air-ticket or schooling allowances sit outside the basic wage unless the contract makes them part of it.
- Offer letters quoting a single 'all-inclusive' figure must be split by the reader; the widget cannot infer the employer's intended breakdown from a lump sum.
Where publishers use it
- A recruiter explaining an offer letter to a candidate
- An HR team comparing salary structures
- A careers blog on negotiating basic salary
- An Arabic job board
- A school's HR page explaining teacher pay with housing and schooling allowances
- A Sharjah SME preparing WPS salary files
- A Dubai Internet City startup structuring offer letters
Questions
Why does the basic salary matter in the UAE?
Because gratuity, the overtime premium and the payout for unused leave are calculated on the basic wage only. A higher basic raises all three.
Are housing and transport allowances part of gratuity?
No. The Decree-Law's definition of basic wage excludes allowances and benefits in kind.
How fast does gratuity build up?
21 days of basic wage for each year of the first five years of service and 30 days for each year after that, capped at two years' wage in total.
Does the widget calculate my gratuity in dirhams?
Not yet: the law does not state how a monthly basic converts to a day's wage, and A2Z will not assume a convention without an official source.
Should I negotiate a higher basic or a higher allowance?
For the same total, a higher basic increases gratuity, overtime and unused-leave pay, while allowances do not. An offer letter of AED 15,000 with a AED 10,000 basic accrues gratuity on 10,000; one with a AED 6,000 basic accrues it on 6,000.
Why does the WPS salary file show basic and allowances separately?
The Wage Protection System file sent through the employer's bank or exchange house lists the basic salary and the allowances in separate fields, and MOHRE checks them against the contract - which is why the basic figure matters for gratuity disputes.
Rules and official sources
Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for United Arab Emirates; when a rule changes, the widget changes with it.
| Rule | Official source | In force from | Last verified | Next review |
|---|---|---|---|---|
| Which entitlements use the basic wage Basic wage excludes allowances and in-kind benefits. Gratuity, overtime and the payout for unused leave on exit are all calculated on the basic wage. |
Federal Decree-Law No. 33 of 2021 (official text) UAE Legislation portal (uaelegislation.gov.ae) - FDL 33/2021 Art. 1 (Basic Wage), Art. 19(2), Art. 51(5); leave payout on exit: Cabinet Resolution 1/2022 Art. 19(2) |
2 Feb 2022 | 6 Oct 2026 | 4 Apr 2027 |
| End-of-service gratuity rate Full-time foreign worker with at least 1 year of continuous service: 21 days' basic wage per year for the first 5 years, 30 days per year after (Art. 51(2)); pro rata for part years (51(3)); unpaid absence excluded (51(4)); last basic wage (51(5)). Cap (51(6), Arabic: "أجر سنتين"): two years' WAGE - Art. 1 defines Wage as basic plus cash allowances and in-kind benefits, separately from Basic Wage, so the cap is 24 x the full monthly wage, not the basic. Read on the official Arabic text 2026-10-07. |
Federal Decree-Law No. 33 of 2021 (official text, Arabic prevails) UAE Legislation portal (uaelegislation.gov.ae) - Art. 51(2)-(6); Art. 1 definitions of Wage and Basic Wage |
2 Feb 2022 | 7 Oct 2026 | 5 Apr 2027 |
Sources
- Federal Decree-Law No. 33 of 2021 (official text) - UAE Legislation portal (uaelegislation.gov.ae) . FDL 33/2021 Art. 1 (Basic Wage), Art. 19(2), Art. 51(5); leave payout on exit: Cabinet Resolution 1/2022 Art. 19(2). Verified 2026-10-06.
- Federal Decree-Law No. 33 of 2021 (official text, Arabic prevails) - UAE Legislation portal (uaelegislation.gov.ae) . Art. 51(2)-(6); Art. 1 definitions of Wage and Basic Wage. Verified 2026-10-07.
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