Same role, first-year employer cost · UAE
- Expat hire — first year
- AED 181,500
- Emirati hire — first year
- AED 216,000
- Difference
- AED 34,500
Emirati hire costs more
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Is it cheaper to hire an expat or an Emirati / Saudi for the same role in year one?
Checked against MOHRE / HRSD rules · reviewed 1 Oct 2026 · next review 1 Jan 2027
Both hires start from 12 months of basic salary plus allowances, plus any other first-year costs you enter. UAE expat: add the MOHRE work permit fee for your category and the end-of-service gratuity built up in year one (21 days' basic). UAE Emirati: add the employer pension contribution at the rate you enter, and optionally subtract the AED 108,000 Emiratisation contribution the hire avoids. Saudi expat: add 12 months of expat levy, the work permit and iqama fees and 2% GOSI. Saudi national: add the employer's GOSI share on basic + housing at the rate in force on the date.
First-year employer cost for typical packages, worked out with the same rules the calculator uses.
| Case | Expat, first year | National, first year | Difference |
|---|---|---|---|
| UAE · AED 14,000 expat vs AED 18,000 Emirati | AED 181,500 | AED 216,000 | AED 34,500 (Emirati hire costs more) |
| UAE · same, hire closes an Emiratisation gap | AED 181,500 | AED 108,000 | AED 73,500 (expat costs more) |
| Saudi · SAR 11,000 for both, expats outnumber Saudis | SAR 144,750 | SAR 147,300 | SAR 2,550 (Saudi hire costs more) |
| Saudi · same, expats ≤ Saudis | SAR 143,550 | SAR 147,300 | SAR 3,750 (Saudi hire costs more) |
UAE: MOHRE category B, AED 6,000 of other expat costs, Emirati pension not included. Saudi: GOSI new system, iqama fee included.
See your target with the Emiratisation calculator or the Saudized jobs list, total your Saudi renewals with the iqama renewal cost calculator, and price UAE permits with the UAE work permit cost calculator.
It depends on the salaries. On top of salary, an expat hire costs the MOHRE work permit fee (AED 250, 1,200 or 3,450 by company category), end-of-service gratuity of 21 days' basic salary for each of the first five years, and visa, Emirates ID, medical and insurance costs. An Emirati hire adds the employer's pension contribution instead, and can save the Emiratisation contribution if your company has a gap. Enter both salaries to see which costs more in year one.
The expat levy (SAR 800 a month, or SAR 700 when expats don't outnumber Saudis), the SAR 100 annual work permit, the iqama fee (SAR 650 a year, secondary source) and the 2% GOSI occupational hazards contribution on basic + housing. Licensed industrial establishments don't pay the levy. A Saudi hire costs the employer's full GOSI share instead — annuity, SANED unemployment insurance and occupational hazards.
MOHRE confirmed AED 108,000 per missing Emirati for the 2025 targets. The 2026 amount hasn't been officially confirmed, so switching on 'This hire closes an Emiratisation gap' subtracts AED 108,000 as an estimate. Check your gap with our Emiratisation calculator.
We only use rates we've verified against official sources, and the employer pension rate for Emiratis isn't in our verified rules yet. Enter the rate your pension fund charges you and the calculator applies it to the salary you entered. Until you do, the result warns that pension is missing.
A Saudi paid at least SAR 4,000 a month generally counts as one worker for Nitaqat; below that, as half. Nitaqat's full counting rules and bands aren't fully published, so treat this as an estimate and confirm on Qiwa. Check which roles must be filled by Saudis on our Saudized jobs list.
Some costs are one-off or yearly — the UAE work permit fee, the Saudi work permit and iqama fees — and gratuity builds up over the year. Comparing the first 12 months puts every cost on the same footing.
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Post a job freeEmiratisation Calculator
Your Emiratisation target, hires still needed and the estimated contribution if you miss it.
Open toolSaudized Jobs List
Which professions are Saudized, the Saudi share required and when each rule starts.
Open toolIqama Renewal Cost Calculator
Yearly iqama renewal cost: expat levy, work permit, iqama and dependant fees.
Open toolUAE Work Permit Cost Calculator
MOHRE work permit fees by category A/B/C, totalled for your hires.
Open toolCost per Hire Calculator
Internal + external recruiting costs ÷ hires, with the split per hire.
Open toolOffer Letter Generator
A Gulf-format offer letter with basic pay, allowances, probation and notice, in English and Arabic.
Open toolExpat hire
Your figure: visa, Emirates ID or iqama processing, medical, insurance, flights, recruitment.
National hire
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Rules
Enter your rate from your pension fund. Left empty, pension isn't included.
Same role, first-year employer cost · UAE
Emirati hire costs more
Checked against MOHRE / HRSD rules · reviewed 1 Oct 2026 · next review 1 Apr 2027Sources: MOHRE — Establishment classification and work-permit fees (A/B/C) · u.ae — End-of-service benefits (private sector) · DIFC — Qualifying schemes (DEWS)
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