Employee cost calculator
I look beyond the offer letter to see what a role will cost the business each month.
My employee cost calculator adds the costs around a salary to estimate the monthly and annual budget for a role. Include allowances, bonuses, benefits, hiring, equipment, workspace, training and optional UAE gratuity. I also show the multiplier over basic salary and the cost per working hour using your own working schedule.
See the cost around the salary
Your employee cost estimate
- Monthly loaded cost
- Annual loaded cost
- Multiplier over basic salary
- Cost per working hour
| Cost | Monthly | Annual |
|---|
One consistent monthly budget
1. Normalise the costs
I add monthly basic salary, allowances, benefits, equipment and office cost. Monthly bonus provision = annual basic salary × bonus percentage ÷ 12. Annual training is divided by 12. Visa and recruitment costs are divided by expected tenure in months.
2. Add optional gratuity
Under the standard UAE Labour Law rule in Federal Decree-Law No. 33 of 2021, I use 21 days of basic wage per year up to five years and 30 days per year thereafter, including eligible partial years. Estimated entitlement = daily basic wage × eligible days, capped at 24 months of basic wage. Monthly provision = entitlement ÷ expected tenure months.
3. Compare the role
Annual loaded cost = monthly loaded cost × 12. Salary multiplier = monthly loaded cost ÷ monthly basic salary. If basic salary is zero, the multiplier is undefined and I label it accordingly. The hourly estimate divides annual cost by hours per week × weeks per year.
4. Check cash and obligations
This is a steady monthly planning budget. Actual cash payments for hiring, annual bonuses and gratuity fall at different times. I hold basic wage constant across tenure and do not forecast pay rises. Add applicable employer taxes and contributions yourself; the currency label does not select a local legal regime.
Employee cost FAQs
What is fully loaded employee cost?
I use fully loaded cost to mean salary plus the allowances, bonus, benefits, hiring, equipment, office, training and gratuity amounts you include. It is a planning estimate for the employer, not the employee's take-home pay.
How are visa and recruitment costs spread?
I add the one-off visa or permit and recruitment costs, then divide by expected tenure in months. This produces a monthly planning allowance. You may still have to pay those costs upfront.
How does the UAE gratuity option work?
I estimate the standard private-sector entitlement over your expected tenure, then divide it by tenure months. It uses 21 days of basic wage per year for the first five years, 30 thereafter, and a 24-month basic-wage cap. No entitlement is modelled for tenure below one year.
Does changing currency convert the inputs?
No. AED, PKR, USD, GBP and CAD are display labels only. I keep every entered amount unchanged. Enter all costs in the same currency before comparing the result.
What does cost per working hour mean?
I divide annual loaded cost by your hours per week multiplied by working weeks per year. Use weeks after holidays and leave if you want an available-hour estimate. This does not estimate billable utilisation.
Which employment costs should I add myself?
Add employer contributions, insurance, local levies or recurring permit renewals to benefits or another appropriate field when they apply. I do not infer country-specific obligations. Avoid entering the same benefit in both allowances and benefits.
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I can help connect headcount, capacity and revenue assumptions before you hire.
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