Taxes in United Arab Emirates

Employer Contributions in the UAE

In the UAE, employer contributions vary depending on the nationality of the employee. Expatriates are not subject to social security contributions, while UAE and GCC nationals are covered under the General Pension and Social Security Authority (GPSSA).

• For UAE nationals: Employers contribute 12.5% of gross salary to the GPSSA (15% in Abu Dhabi), covering pensions and social security.
• For expatriates: Employers are not required to contribute to state social security, but must provide end-of-service gratuity as mandated by UAE labour law.

Employers are also required to provide health insurance, which is mandatory in most Emirates (such as Abu Dhabi and Dubai), either directly or via a group policy.

Employee Contributions in the UAE

• UAE nationals: Employees contribute 5% of gross salary toward social security (GPSSA).
• Expatriates: No employee social security contributions apply.

Income tax

The UAE does not levy personal income tax on salaries. Employees receive their gross salary as net pay, subject only to voluntary deductions (e.g., for benefits or allowances).

Other notes

• Corporate tax: While employees are not taxed, companies may be subject to UAE corporate tax rules (depending on profits, free zone status, and exemptions).
• End-of-service gratuity: Serves as a substitute for pension schemes for expatriates. Employers must pay a lump sum based on years of service when the employment ends.