Advisory About GCC Market Articles Tools Authority Index Contact

UAE Labour Cost Calculator

Calculate the true fully-loaded cost of labour for a UAE coffee business. Generic tools miss visa costs, accommodation provisions, end-of-service gratuity, and annual leave obligations that are unique to operating in the GCC.

Staff Configuration

Baristas
4
No
Yes
Supervisors
1
No
Yes
Managers
1
No
Yes
14 hrs
7 days
Labour Cost Summary
Per-Staff Breakdown
Benchmark Comparison

UAE Labour Law — Key Provisions for Coffee Operators

End-of-Service Gratuity: Employees who complete one year of continuous service are entitled to 21 calendar days of basic salary per year for the first five years, and 30 days per year thereafter. This is a legal obligation and must be provisioned in your monthly costs.

Annual Leave: UAE Labour Law mandates 30 calendar days of paid annual leave per year after one year of service. During leave, you still carry the salary cost but lose the productive output — this is a real cost that must be accounted for.

Visa Obligations: Employers must sponsor employee visas, covering medical testing, Emirates ID, labour card issuance, and annual renewal fees. Budget approximately AED 5,000 per employee per year.

Frequently Asked Questions

Why is fully-loaded cost so much higher than basic salary?
In the UAE, an employee's basic salary typically represents only 50-65% of the true cost of employment. Visa fees, accommodation, transport, end-of-service provisions, and annual leave costs add 35-50% on top. A barista on AED 2,500/month basic costs AED 4,500-5,500/month fully loaded.
What labour-to-revenue percentage should I target?
For a healthy GCC coffee business, target 28-35% of revenue on fully-loaded labour costs. Above 35% requires attention; above 42% is critical and means your staffing model is unsustainable at current revenue levels.
Does this calculator account for overtime?
This calculator shows the base fully-loaded cost. UAE Labour Law requires overtime pay at 125% of basic salary (150% for night shifts and holidays). If your operating hours require regular overtime, actual costs will be higher than shown.

Assess your full business health

Labour is one part of the picture. The Authority Index evaluates your entire operation — financials, scalability, risk profile, and strategic positioning.

Run the Authority Index