UAE salary breakdown calculator: basic and allowances: Same package.
Very different gratuity.
Basic salary and total package are not the same number, and several statutory amounts are calculated on the basic figure alone. Here is what your split means.
Many UAE contracts set basic at roughly half the package. That is convention and negotiation, not a statutory rule.
Package breakdown
United Arab EmiratesBasic salary
AED 7,500.00
Allowances
AED 7,500.00
How this was worked out
- Basic at 50% of the package
- AED 7,500.00
- Allowances (the remainder)
- AED 7,500.00
- Daily basic rate (÷ 30)
- AED 250.00
- Hourly basic rate (÷ 8)
- AED 31.25
- Annual package
- AED 180,000.00
What that basic figure would be worth as gratuity
The split between basic and allowances matters for this reason. Two people on the same package can be owed very different amounts on the day they leave.
After 1 year
AED 5,250.00
After 3 years
AED 15,750.00
After 5 years
AED 26,250.00
After 10 years
AED 63,750.00
DenwaysHR holds salary structures and their components as configurable rules, so this split is defined once rather than every month.
See the salary engineIndicative only. This calculator applies UAE salary structure conventions and gratuity rules to the figures you enter. Contracts, unpaid leave, outstanding dues and free-zone rules can all change the result. Confirm the final amount with your legal adviser before paying or accepting it.
Why the split between basic salary and allowances matters
A package is a basic salary plus allowances, and several statutory amounts are calculated on the basic figure alone. Two people on the same total can be owed very different sums at the end of service because of how that total was divided.
What the calculator works out
- Basic salary is the total package multiplied by the percentage you choose; the allowances are the rest
- The daily basic rate is basic ÷ 30, and the hourly basic rate is that ÷ 8
- UAE end-of-service gratuity is calculated on basic salary
- UAE overtime is derived from basic salary
- Saudi Arabia's end-of-service award uses the last wage, allowances included
- Many UAE contracts set basic at about 50 to 60 per cent of the total. That is convention, not a legal rule
The same package, split two ways
A total of AED 10,000 a month, and five years of service.
- Basic at 60% of the package
- AED 6,000
- Gratuity after 5 years (21 × 5 × 200)
- AED 21,000
- Basic at 40% of the package
- AED 4,000
- Gratuity after 5 years (21 × 5 × 133.33)
- AED 14,000
- Difference from the split alone
- AED 7,000
What percentage of a UAE salary should be basic?
The law does not fix one. Many contracts put basic at roughly 50 to 60 per cent of the total package, but that is convention and negotiation, which is why the split is something you enter here.
Why does basic salary matter so much?
Because gratuity and overtime in the UAE are calculated from it. A lower basic means a lower end-of-service payment and a lower overtime rate, even when the monthly total is the same.
How do I work out a daily and hourly rate?
Divide the basic monthly salary by 30 for a daily rate, and divide that by 8 for an hourly rate. The calculator shows both.
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