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What an employee
actually costs you

Salary is rarely more than three quarters of the real cost. This adds allowances, social insurance, end-of-service accrual, visa and medical costs, and air-ticket provision to give a fully loaded monthly and annual figure.

⚠️ Important — please read before using this figure

This calculator is provided for general guidance and estimation only. It applies statutory minimum formulas and does not constitute legal, tax, financial, or accounting advice. Statutory rates, ceilings, thresholds, and formulas are amended periodically in every GCC market, and your contract, entity, jurisdiction, and individual circumstances all change the outcome. Always cross-check any figure independently against the current law and your signed employment contract, and obtain advice from a qualified legal or payroll professional before acting on, communicating, paying, or relying on any amount shown here. AmalOps accepts no liability for any loss, claim, or dispute arising from use of this tool or reliance on its output.

Your details
Transport, phone, education and similar.
Leave at 0 for expatriate employees outside the scheme. See the social insurance calculator.
Amortise multi-year permits across their validity.
Recruitment amortisation, training, equipment, workspace.
Fully loaded annual cost
Fill in the fields to calculate.
⚠️ Estimate only — cross-check before use. Statutory rates change and individual circumstances vary. This is not legal or financial advice. Verify against current law and the employment contract, and take professional advice before relying on, paying, or communicating this figure. AmalOps accepts no liability for reliance on this output.
How It Works

What goes into
fully loaded cost

When a hiring manager asks whether a role is affordable, the number that matters is not salary. In most GCC organisations, salary and allowances account for somewhere between 70 and 85 per cent of the true annual cost of an employee, and the remainder is spread across items that are individually small and collectively significant.

End-of-service accrual

The most commonly omitted item. End-of-service is a liability that accrues every month the employee works, so it is part of the cost of employing them, not a one-off expense at exit. The calculator adds an accrual based on the basic salary you enter, since gratuity in most GCC markets is calculated on basic wage.

Social insurance

The employer share applies to national employees in most GCC schemes, so it is frequently zero for expatriate staff, with exceptions such as the Saudi occupational hazards branch. Because it is calculated on a contributory wage rather than total pay, the percentage should be applied to basic plus housing rather than to everything.

Visa, medical and mobility

Work permits, medical testing, identity documentation, and mandatory health insurance are real recurring costs that vary by market, licensing authority, and job category. Multi-year permits should be amortised across their validity rather than expensed in the year of issue. Air-ticket entitlements should be accrued as a liability rather than expensed when claimed.

Why this number changes decisions

Fully loaded cost per employee, reported by entity and function, is one of the twelve metrics GCC leadership teams consistently ask for, because it is what allows an honest conversation about whether a team is affordable. Salary alone invites the wrong conversation. See our note on the HR metrics leadership actually asks for.

Stop calculating this by hand

Real cost per head,
reported automatically

AmalOps calculates fully loaded cost per employee, cost centre, and entity from live payroll data, including statutory accruals, so finance stops rebuilding it in a spreadsheet each month.

See AmalOps Payroll
Common Questions

Frequently asked
questions

What is the true cost of an employee in the UAE?+
Salary and allowances typically account for 70 to 85 per cent of the total. The remainder comprises end-of-service accrual, social insurance where applicable, visa and permit costs, mandatory medical insurance, air-ticket provision, and overheads such as equipment and workspace.
Yes. Gratuity accrues every month the employee works, so it is part of the ongoing cost of employing them rather than a one-off expense at termination. Excluding it understates cost and leaves an unrecognised liability.
Generally not into the national pension schemes, which cover nationals only. Saudi Arabia is a partial exception, since the GOSI occupational hazards branch covers all employees and is employer-funded. Set the employer share to zero where no scheme applies.
Amortise them across the validity period rather than expensing the full amount in the year of issue, so cost per head reflects the ongoing commitment rather than spiking in renewal years.
Because it is the number that supports a real decision about whether a role or a team is affordable. Reported by entity and function it also makes headcount planning meaningful, which a salary figure alone cannot do.
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