The UAE levies 0% personal income tax on salaries — confirmed for 2026 (ignore the December-2025 rumour of a 5% tax; no decree supports it). Emirati nationals in the private sector pay GPSSA pension — 11% for those registered from 31 October 2023, 5% for earlier registrations. Everyone, Emiratis and expats alike, pays the small mandatory ILOE unemployment-insurance premium of AED 5–10/month.
Estimates only — not tax advice. Results are computed from official 2026 tax rules; always verify important decisions with the relevant tax authority.
Step 1 — Enter your monthly gross salary in AED.
Step 2 — Select your nationality. Emiratis pay GPSSA pension; expats pay no pension at all.
Step 3 — If Emirati, choose your GPSSA registration era. Registered on/after 31 Oct 2023 means the 11% new regime; before that, the 5% old regime.
Step 4 — Enter your basic salary. ILOE costs AED 5/month if your basic is AED 16,000 or less, AED 10/month above that.
There is no income tax on employment income in the UAE. The 9% corporate tax (Federal Decree-Law 47/2022) applies to business profits only — never to your salary. What does come off your pay depends on who you are:
| GPSSA regime | Employee rate | Salary band |
|---|---|---|
| New — registered on/after 31 Oct 2023 | 11% | AED 3,000–70,000/mo |
| Old — registered before 31 Oct 2023 | 5% | AED 1,000–50,000/mo |
The GPSSA base is your contribution salary — contract salary including basic pay plus regular allowances — clamped to the band above. The employer adds 15% on top (12.5% + a 2.5% government top-up when your salary is under AED 20,000).
ILOE unemployment insurance (Federal Decree-Law 13/2022) is mandatory for almost everyone in 2026, Emiratis and expats: AED 5/month if your basic salary is AED 16,000 or less, AED 10/month above that (plus VAT). Investors, domestic workers and under-18s are exempt.
Example 1 — Emirati, AED 20,000/month (new regime): GPSSA = 11% × 20,000 = AED 2,200; ILOE = AED 10. Take-home = AED 17,790. No income tax.
Example 2 — expat, AED 20,000/month: no GPSSA, ILOE AED 10 only. Take-home = AED 19,990 — essentially the full gross.
Example 3 — Emirati, AED 80,000/month (new regime): GPSSA hits the AED 70,000 cap → 11% × 70,000 = AED 7,700; ILOE AED 10. Take-home = AED 72,290.
1. Believing the 5% income-tax rumour. A December-2025 rumour claimed PIT from January 2026 — it is false. No decree exists; the UAE Ministry of Finance and every Big-4 firm confirm 0%.
2. Expats expecting a pension deduction. GPSSA covers Emiratis only. If you’re an expat and see a pension line on your payslip, query it.
3. Forgetting ILOE. It’s tiny (AED 5–10), but skipping enrolment risks an AED 400 fine — and it’s the one deduction expats genuinely owe.
| Applicable period | 2026 (GPSSA new regime from 31 Oct 2023; ILOE mandatory) |
| Based on | GPSSA pension regulations (FDL 57/2023, Law 7/1999); ILOE (FDL 13/2022); UAE Ministry of Finance (0% PIT) |
| Last verified | 24 October 2026 |
| Assumes | Private-sector employee; Emiratis under GPSSA, expats under no pension scheme |
| Doesn’t cover | GCC nationals (covered by home-country schemes); Abu Dhabi/Sharjah government-sector funds; gratuity accrual |
Sources: Figures compiled from: GPSSA, MOHRE, ILOE.
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No. The UAE levies 0% personal income tax on employment income in 2026. A rumour of a 5% tax from January 2026 has no legal basis — no decree was ever issued.
The Involuntary Loss of Employment scheme: mandatory unemployment insurance costing AED 5/month (basic ≤ AED 16,000) or AED 10/month (basic above that), plus VAT. It covers Emiratis and expats alike.
No. GPSSA covers Emirati nationals in the private sector. Expatriates pay no pension contributions — only the small ILOE premium comes off their pay.
AED 70,000/month under the new regime (registrations from 31 Oct 2023) and AED 50,000/month under the old regime. Contributions stop accruing above the cap.
📖 How salary deductions work in United Arab Emirates — full guide
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