Source-cited draft: payroll & social contributions for United Arab Emirates (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Overview of payroll tax and social security applicability
There is no payroll/PAYE income tax in the UAE because there is no personal income tax. Mandatory social security (pension) contributions apply only to UAE and GCC national employees, administered by the General Pension and Social Security Authority (GPSSA); expatriate employees are not covered but are entitled to an end-of-service gratuity.
Payroll income tax (PAYE)
None — no income tax is withheld from wages because the UAE has no personal income taxPwC Worldwide Tax Summaries — UAE (Individual: Taxes on personal income), https://taxsummaries.pwc.com/united-arab-emirates/individual/taxes-on-personal-income
Who social security covers
Mandatory only for UAE national (and GCC national) employees; expatriate employees are not subject to social security contributionsFederal Law by Decree No. 57 of 2023 (Pension and Social Security), https://u.ae/en/information-and-services/jobs/working-in-uae-government-sector/pensions-and-social-security-for-uae-citizens
Total contribution rate (new members, from Oct 2023)
26%Federal Law by Decree No. 57 of 2023 (Pension and Social Security), https://www.zoho.com/en-ae/payroll/academy/compliance/gpssa-and-adpf-pension.html
Employee share (new members)
11%Federal Law by Decree No. 57 of 2023 (Pension and Social Security), https://www.zoho.com/en-ae/payroll/academy/compliance/gpssa-and-adpf-pension.html
Employer share (new members)
15% of the contribution account salary (for private-sector employees earning under AED 20,000/month the government funds 2.5%, reducing employer cost to 12.5%)Federal Law by Decree No. 57 of 2023 (Pension and Social Security), https://www.zoho.com/en-ae/payroll/academy/compliance/gpssa-and-adpf-pension.html
Total contribution rate (existing members, pre-Oct 2023)
20%Federal Law No. 7 of 1999 (Pensions and Social Securities), https://www.sovereigngroup.com/news/mandatory-uae-national-pensions-gpssa-and-adpf/
Employee share (existing members)
5%Federal Law No. 7 of 1999 (Pensions and Social Securities), https://www.sovereigngroup.com/news/mandatory-uae-national-pensions-gpssa-and-adpf/
Employer share (existing members)
12.5% of the contribution account salary (plus a 2.5% government share for private sector)Federal Law No. 7 of 1999 (Pensions and Social Securities), https://www.sovereigngroup.com/news/mandatory-uae-national-pensions-gpssa-and-adpf/
Contribution salary cap (new members)
AED 70,000Federal Law by Decree No. 57 of 2023 (Pension and Social Security), https://www.zoho.com/en-ae/payroll/academy/compliance/gpssa-and-adpf-pension.html
Contribution salary cap (existing members)
AED 50,000Federal Law No. 7 of 1999 (Pensions and Social Securities), https://www.zoho.com/en-ae/payroll/academy/compliance/gpssa-and-adpf-pension.html
Contribution remittance deadline
Monthly — payable from the 1st to the 15th day of each monthFederal Law by Decree No. 57 of 2023 / GPSSA contribution rules, https://gpssa.gov.ae/pages/en/media-center/news/gpssa-insureds-contribution-payment-may-be-extended-15th-day-each-month
End-of-service gratuity (expatriates)
21 days' basic wage per year for the first 5 years of service, and 30 days' basic wage per year thereafter (capped at 2 years' total wage)Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Art. 51
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