Net Salary Calculator (UAE 2026) - GPSSA Pension for Emiratis, Zero Tax for Expats

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UAE net salary - the most important fact

The UAE has NO personal income tax for any employee, regardless of nationality, salary level, or sector. This is the single most important fact about UAE compensation. For expatriates (who make up about 90% of the UAE workforce), there are also NO pension contributions, NO social insurance deductions, NO mandatory payroll taxes whatsoever. Your gross salary equals your net salary. Whatever the contract says is what lands in your bank account each month. The only legitimate post-employment compensation for expats is the end-of-service gratuity (EOSG), which the employer pays separately upon contract end.

GPSSA pension for Emirati employees

Emirati nationals working in the UAE private sector are enrolled in GPSSA (General Pension and Social Security Authority) - their version of a social security pension system. The contribution structure was overhauled by Federal Decree-Law No. 57 of 2023 (effective October 31, 2023). For Emiratis hired AFTER that date: employee contributes 11% of pensionable salary, employer contributes 15%, and the federal government adds a 2.5% subsidy. For Emiratis hired BEFORE October 31, 2023: the older Federal Law 7/1999 still applies, with 5% employee + 12.5% employer contributions.

Modern (2023) vs Legacy (1999) schemes

Federal Decree-Law 57/2023 - the 'modern' scheme - applies only to Emirati nationals who started a new GPSSA-covered job on or after October 31, 2023. Existing Emirati employees who were already paying into GPSSA before that date continue under the Federal Law 7/1999 'legacy' scheme with the older rates: 5% employee + 12.5% employer + AED 50,000 cap. Under the modern scheme: rates rose to 11% employee + 15% employer, cap rose to AED 100,000 (private sector), and the government added the 2.5% subsidy. Use the scheme toggle to see your specific situation.

What counts as pensionable salary

Unlike Saudi Arabia (where only basic + housing count), the GPSSA definition of pensionable salary is broader. It typically includes basic salary, housing allowance, transport allowance, cost-of-living allowance, and child allowance (if any). One-off bonuses and incentives are typically excluded. For the modern scheme, the maximum pensionable wage is AED 100,000 per month - so even if your total is higher, GPSSA contribution caps at 11% × AED 100,000 = AED 11,000 per month maximum for the employee.

What the employer actually pays

For an Emirati employee at AED 16,500 gross under the modern scheme, the employer pays: AED 16,500 (gross to employee) + 15% × min(16,500, 100,000) (employer GPSSA) = AED 16,500 + AED 2,475 = AED 18,975 monthly. The federal government adds another 2.5% × 16,500 = AED 412 to the GPSSA fund as a subsidy (not paid by the employer). For an expat at the same gross, the employer pays just AED 16,500 (no pension, no taxes), but separately accrues end-of-service gratuity (typically 21-30 days per year per Decree-Law 33/2021).

Key facts and where to verify

Your payslip should show your gross compensation breakdown. If you're Emirati, the GPSSA deduction line should show 11% (or 5% for legacy hires) of the pensionable wage. If you're a non-Emirati employee and see ANY 'deductions' line, ask HR to clarify - the UAE does not authorize income tax or mandatory pension deductions for expatriates. The only legitimate deductions might be voluntary (private health insurance contribution, optional savings plan, garnishments per court order). For pension scheme details, GPSSA's official portal at gpssa.gov.ae lets you check your current balance and contribution history.