Cost of Hiring an Employee in the UAE: 2026 Employer Guide
UAE employer guide · Updated November 2026
The cost of a UAE hire goes beyond salary. This guide lists every cost an employer pays, from MOHRE work permit fees to health insurance and gratuity. It includes a worked example and compares direct hire, Employer of Record and remote staffing.
Short answer: a UAE hire costs the salary and allowances plus government fees, health insurance and end-of-service gratuity. MOHRE work permits cost AED 250, 1,200 or 3,450, depending on your company category.
What Makes Up the Cost of a UAE Hire
| Cost | What it covers | Paid |
|---|---|---|
| Salary and allowances | Basic salary plus housing, transport and other allowances | Monthly |
| Work permit | MOHRE work permit, priced by company category | Every two years |
| Residence visa | Entry permit, status change if needed and residence stamping | On hiring and renewal |
| Medical test and Emirates ID | Fitness test and ID card | On hiring and renewal |
| Health insurance | Mandatory medical cover | Yearly |
| Worker protection | Insurance or a bank deposit that covers workers’ dues | With the permit |
| End-of-service gratuity | 21 days’ basic salary a year for five years, then 30 days | Accrued monthly |
| Recruitment fee | Agency fee if you use one | Once per hire |
| Equipment and onboarding | Laptop, licences and training | On hiring |
MOHRE Work Permit Fees by Company Category
MOHRE places each establishment in one of three categories. The category sets the two-year work permit fee.
| Establishment category | Two-year work permit fee |
|---|---|
| Category 1 | AED 250 |
| Category 2 | AED 1,200 |
| Category 3 | AED 3,450 |
Companies that meet Emiratisation and other targets can move into a better category. Visa, medical and Emirates ID fees are charged separately and change from time to time. Check current fees with MOHRE or your visa provider.
Worked Example: Annual Cost of One Developer
Take a developer with a basic salary of AED 12,000 and allowances of AED 8,000 a month.
- Salary and allowances: AED 20,000 × 12 = AED 240,000 a year.
- Gratuity accrual: 21 days of basic salary, or AED 8,400 for the first year.
- Government fees, insurance and equipment: add your own quotes.
- Direct hire fee: 15–20% of AED 240,000, which is AED 36,000 to 48,000, once.
Use the UAE gratuity calculator and the hiring cost calculator to model your own numbers.
Three Ways to Hire and What Each Costs
| Route | Who employs the person | Staffenza fee | Your other costs |
|---|---|---|---|
| Direct hire | Your UAE entity | 15–20% of the first-year package, with a 3-month replacement guarantee | Salary, government fees, insurance, gratuity |
| Employer of Record | Staffenza in the UAE | AED 899 per employee per month | Salary, plus government costs at actual cost |
| Remote staff augmentation | Staffenza in India | USD 225 a month | Salary only |
A senior developer in India costs about 45% less than a Dubai hire, including the fee. This is based on Levels.fyi median salaries in October 2026.
Costs Employers Must Not Pass On
Under Federal Decree-Law No. 33 of 2021, the employer pays recruitment and employment costs. These include work permit and visa fees, medical tests and Emirates ID.
Employers must not deduct these from salary or charge them to the worker. See the UAE labour law guide for employers.
Related Guides and Tools
Cost of Hiring in the UAE FAQs
How much does it cost to hire an employee in the UAE?
The cost is the salary and allowances plus government fees, health insurance, end-of-service gratuity and any recruitment fee. Government fees depend on your company’s MOHRE category and the visa type.
How much is a UAE work permit?
MOHRE’s two-year work permit fee is AED 250, 1,200 or 3,450, depending on the establishment’s category. Visa, medical and Emirates ID fees are extra.
Who pays visa costs in the UAE?
The employer. Federal Decree-Law No. 33 of 2021 requires employers to bear recruitment and employment costs and not charge workers.
Is health insurance mandatory for employees in the UAE?
Yes. Employers must provide health insurance for their employees.
How much does an EOR cost in the UAE?
Staffenza charges AED 899 per employee per month, plus government costs at actual cost.
What is the cheapest way to add a developer to a UAE team?
Remote staff augmentation usually costs least, because the engineer is based outside the UAE. Staffenza charges USD 225 a month on top of salary.