UAE True Cost of Hire Calculator 2025

What is the true cost of hiring in UAE?

The true first-year cost is typically 1.6× to 2.8× annual basic salary depending on seniority. This includes employment visa (AED 5,000–7,000), medical insurance (AED 3,000–9,000), housing allowance (20–30% of basic), transport, annual flight, gratuity accrual (21 days basic), and recruitment fees (12–20% of annual salary).

How much does a UAE employment visa cost in 2025?

UAE employment visa costs range from AED 4,800–6,400 for mainland and AED 5,000–6,500 for free zone visas, including Emirates ID and medical fitness. Abu Dhabi is slightly higher. UAE nationals and GCC nationals do not require employment visas.

Is medical insurance mandatory for UAE employees?

Yes. Medical insurance is mandatory in Dubai (Law No. 11 of 2013) and Abu Dhabi (since 2006). Sharjah and Northern Emirates follow federal requirements. Employers face health authority fines for non-compliance.

How should employers budget for gratuity accrual?

Best practice: provision monthly at Basic Salary ÷ 12 × 1.75 for the first 5 years. Many UAE companies fail to accrue for gratuity, creating a significant liability at termination. Year 1 accrual = 21 days basic salary.

Does NAFIS reduce the cost of Emirati employees?

Yes. NAFIS provides monthly government salary supplements of AED 3,000–5,000 for eligible Emirati private sector employees. This significantly reduces net Emiratisation cost and helps companies meet MoHRE quotas.