UAE take-home pay for 2026: no income tax, pension for nationals, ILOE for all
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 29 Sept 2026.Enter a yearly salary and choose expatriate or UAE national to see what the law deducts in 2026. The UAE has no income tax on salary. Expatriates pay only the ILOE unemployment premium of AED 60 or 120 a year; Emiratis also pay 5% or 11% of their contribution salary into a pension.
AED 239,940
AED 19,995 a month, over 12 monthsAn estimate of what the law deducts, not financial advice.
| Out of AED 240,000 | A year | A month | Share |
|---|---|---|---|
| Income taxThe UAE has no personal income tax on salary. | AED 0.00 | AED 0.00 | 0% |
| Pension contributionNone: the pension schemes cover UAE nationals only. End-of-service gratuity is paid by the employer. | AED 0.00 | AED 0.00 | 0% |
| Unemployment insurance (ILOE)AED 5 a month for a basic salary of AED 16,000 or less. | AED 60.00 | AED 5.00 | 0% |
| Take-home pay | AED 239,940.00 | AED 19,995.00 | 100% |
2026 · Rates and rules read from the sources listed on this page (the earliest on 29 Sept 2026); they may have changed since.
Enter your "Total salary a year" in AED, basic pay plus all allowances for 12 months.
Under Nationality choose Expatriate or UAE national.
For a UAE national, pick the "Pension scheme" and check the contribution salary share and monthly cap.
Choose your "Unemployment insurance (ILOE)" band by basic salary.
Read "Take-home a year" and "Take-home a month", then press "Share result" to copy a link with these inputs.
The United Arab Emirates does not tax salaries, for citizens or for foreigners. This calculator shows what does come out of a UAE salary by law, so the take-home figure can be compared honestly with other countries.
Expatriates. Nothing is deducted for tax or pension. Foreign employees are not members of the UAE pension schemes, and the end-of-service gratuity they earn is paid by the employer when they leave, not taken from their pay. The one cost the law puts on them is the Involuntary Loss of Employment (ILOE) insurance premium, mandatory since 1 January 2023 for private-sector and federal government employees: AED 5 a month for a basic salary of AED 16,000 or less and AED 10 a month above that.
UAE nationals. Emiratis also pay into a pension. Under Federal Decree-Law No. 57 of 2023, for those first employed on or after 31 October 2023, the employee pays 11% of the contribution salary and the employer 15%; people insured before that date stay under the 1999 law, with a 5% employee share. Abu Dhabi has its own pension fund, whose 2023 law also sets 11% for newly insured members. The contribution salary is basic pay plus housing and the other allowances the law lists, so the calculator lets you set the share of gross it covers and the monthly cap.
Why the cap is an input. The government's own pages give different caps depending on the law and emirate, AED 50,000, 70,000 or 100,000 a month. The default is 70,000; check the figure on your contribution statement.
What it does not do. It does not cover Sharjah government employees, GCC nationals working in the UAE, minimum contribution salaries or employer costs. Rent, school fees and living costs, which decide what a UAE salary is worth, are outside it. Every figure and its source are listed on the page, checked on 29 September 2026. An estimate, not financial advice.
No. The UAE charges no personal income tax on employment income in 2026, for UAE nationals or for expatriates. An expatriate earning AED 240,000 a year keeps AED 239,940 after the AED 60 unemployment insurance premium. Emiratis also pay a pension contribution, which the calculator shows when you pick UAE national.
No. The federal pension law and the Abu Dhabi pension law cover UAE nationals, and GCC nationals are covered under their home country schemes. Expatriates instead earn an end-of-service gratuity under the labour law, which the employer pays when the job ends, so nothing is deducted from their salary for it.
Emiratis first employed on or after 31 October 2023 pay 11% of their contribution salary under Federal Decree-Law No. 57 of 2023, and the employer pays 15%. Those insured before that date pay 5% under the 1999 law. Abu Dhabi Pension Fund members who joined under its 2023 law also pay 11%.
The Involuntary Loss of Employment scheme is unemployment insurance that private-sector and federal government employees must join since 1 January 2023. The premium is AED 5 a month for a basic salary of AED 16,000 or less and AED 10 a month above it. Investors, domestic workers and some other groups are exempt.
For UAE nationals, the salary on which pension contributions are worked out is the basic pay plus housing allowance and the other allowances the pension law lists, such as cost of living and social allowances. Payments outside that list do not count, which is why the calculator lets you lower the share of gross.
Not as a deduction, because the employer pays it. Under the UAE labour law an expatriate employee earns a gratuity based on basic salary and years of service, paid when the contract ends. The amount is not included here. It adds to what the job is worth but does not change monthly take-home pay.
Rates and rules change; check the source before you rely on a figure.
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