How to Calculate Basic Salary in Dubai Per Month (UAE Formula 2026)

Introduction:

Salary calculation is essential for the workers in the UAE and also for employers to calculate salary of their employees. Many tools are available in the Market but no one give you the perfect results and understanding. An employee should know how he can calculate his or her basic salary in the UAE by themselves. UAE labour laws changes frequently. Your basic salary has a direct impact on End of service benefits, gratuity, leave salary, unpaid leave deduction, and termination benefits under UAE's labour law. 

In 2026, salary structure in UAE strictly follows MOHRE (Ministry of Human Resources & Emiratisation). This is critical for employees to understand basic salary roles, minimum wage, calculation, leave entitlement, and deductions. In this complete guide how basic salary is calculated in Dubai and other emirates. By reading this complete article you will able to understand your legal and financial rights and can calculate your salary very easy. 

What Is Basic Salary in Dubai?

Basic salary is a fixed monthly amount provided through WPS (Wage Protection System) in the UAE. When you sign a contract with an employer its mentioned in your contract. It is paid through card system used in exchnage houses in the UAE. Card is known as Payplus if its in Al Ansari Exchange. Basic salary exculde other allowances like housing, transport, food, overtime, comissions and bonus.

According to UAE Labour Law and MOHRE guidelines:

• Basic salary is foundation for all statutory calculations in the UAE
• Allowances other than basic salary are not included in gratuity or end of service benefits
• Employers must clearly the basic salary in the contract when applying for a permit. 

In most of the employment contracts in the UAE, basic salary represents around 50% to 60% of your total monthly salary. This is not mandatory, it can vary depending upon contract type and company.

How to Calculate Basic Salary in Dubai Per Month

The basic salary in the UAE can be calculated in two different ways. 

• Total monthly salary which is also called as gross salary
• Basic Salary percentags mentioned in your contract

UAE Basic Salary Formula 2026

You can calculate your basic salary in UAE with this simple formula.

Basic Salary = Total Monthly Salary × Basic Salary Percentage

For your understanding here is one example given below. Suppose if your total monthly salary is AED 8,000 and your contract specify 60% of your basic salary, than it will be like this. You can try this according to your own salary.

8,000 × 0.60 = AED 4,800

👉 Your basic salary = AED 4,800 per month

This amount will be used for:

• Gratuity Calculation
• End of service benefits
• Leave salary
• Unpaid Leave deductions
• Overtime Salary

UAE Basic Salary Calculator (Instant Estimate)

Use our UAE Basic Salary Calcultor for instant estimate for Dubai & UAE. This calculator calculates basic salary according to the formula accurately.

You can also try other free tools listed below.

• Monthly Salary Calculator UAE
• Gratuity Calculator UAE
• Salary Checker Dubai
• Cost of Living Calculator

Basic Salary Percentage in UAE Labour Law (2026)

There is no fixed salary percentage defined in UAE's labour law. Common practice under MOHRE roles shows this.

⚠️ A lower basic salary reduces your gratuity payout, even if your total salary looks high.

Minimum Salary in Dubai Per Month (Reality Check)

Dubai has not announced a minimum wage. But if we see common fields according to my personal experience basic salary is defined like this one.

1. Entry-level Roles Like Waiter/helpers and other Salary is around AED 1,200 to AED 1,500
2. Mid-Level Roles earn around AED 3,000 to AED 5,000
3. Professionals earn around AED 6,000+ each month

Minimum Basic Salary in Dubai Per month in Indian Rupees

According to latest currency rates disclosed by exchanges in the UAE, the basic salary in INR is around this. Approximate conversion.

• AED 3,000 ≈ ₹68,000 – ₹72,000 INR

How Basic Salary Affects Gratuity in UAE

Gratuity is calculated only on basic salary. Accommodation, transport, food, and other benefits are not included in gratuity. if your basic salary is low, it means your gratuity is low. Below is the simple gratuity formula to calculate from your basic salary.

• Gratuity = Basic Salary × Years of Service × Applicable Rate

Even a small increase in your basic salary can increase your end of service benefits.

👉 Use our UAE Gratuity Calculator for exact and advance results.

How Basic Salary Is Used for Overtime & Leave

• Overtime rate is calculated from basic salary. Either you work 1, 2 or more hours excluding your basic working hours
• if your leaves are unpaid they will also by calculated from your basic salary
• Annual leave salary when you go on vacation or home after 1 year is also calculated from basic salary

This plays an important role to understand basic salary in the UAE and how can it effect you.

Final Words

If you want to protect your legal and financial rights, you must know how to calculate basic salary in Dubai per month. If you do not know, than you are missing important things. It helps you plan your finances. Always verify your labour contract through MOHRE website, check basic salary, working hours properly. Use our UAE trusted basic calculators before making career decisions.