Your desired annual income (tax-free in UAE)
260 total minus holidays, leave, and gaps between contracts
Day Rate
AED 1,565
8-hour day
Hourly Rate
AED 196
per hour
Monthly Equiv.
AED 30,000
per month
| Annual Target | Day Rate | Hourly Rate |
|---|---|---|
| AED 180,000 | AED 783 | AED 98 |
| AED 240,000 | AED 1,043 | AED 130 |
| AED 360,000 (you) | AED 1,565 | AED 196 |
| AED 480,000 | AED 2,087 | AED 261 |
| AED 600,000 | AED 2,609 | AED 326 |
| AED 720,000 | AED 3,130 | AED 391 |
What are average day rates in UAE?
Day rates in the UAE vary widely by industry and seniority. IT contractors typically charge AED 1,200-3,000/day, management consultants AED 2,000-5,000/day, and creative professionals AED 800-2,500/day. Dubai rates tend to be 10-20% higher than other emirates.
How many working days per year in UAE?
The UAE has approximately 260 working days per year (52 weeks x 5 days), minus about 10-12 public holidays. After accounting for annual leave and gaps between contracts, 220-240 billable days is a realistic planning figure for contractors.
Day rate vs hourly rate?
A day rate is based on a standard 8-hour working day. Day rates are common for project-based work, while hourly rates suit variable-hour engagements. During Ramadan, working hours are reduced to 6 hours per day, which may affect your effective rate.
Note: Remember to factor in visa, insurance, and other overheads when setting your day rate. Use our Freelancer Rate Calculator for a more comprehensive calculation.
How to calculate and negotiate your daily rate as a contractor or freelancer in the UAE
What is a day rate?
A day rate is the amount you charge a client for one day of work. It is common in contracting, consulting, and freelance work. For example, if you want to earn AED 30,000 per month and work 22 days, your day rate would be about AED 1,364. Day rates are popular in IT, construction, oil and gas, and professional services in the UAE.
How do I calculate my day rate?
Start with the annual salary you want to earn, add your costs (visa, insurance, downtime), and divide by the number of billable days. For example, if you want AED 360,000 per year, spend AED 40,000 on overheads, and work 220 days a year, your day rate should be at least AED 1,818 (AED 400,000 / 220 days).
Why are day rates higher than equivalent salaries?
Contractors on day rates do not receive employee benefits like end-of-service gratuity, annual leave pay, health insurance, or visa costs. You also have gaps between contracts with no income. A general rule is that your day rate should be 30% to 50% higher than what an employee earns per day for the same role to cover these extras.
Do I pay tax on my day rate earnings?
There is no personal income tax in the UAE, so you keep your full day rate earnings. If you operate through a company and your taxable profit exceeds AED 375,000, you pay 9% corporate tax on the amount above that threshold. Freelancers on a personal permit are generally not subject to corporate tax.
What is a typical day rate in the UAE?
Day rates vary widely by industry and experience. A junior IT consultant might charge AED 1,000 to AED 1,500 per day. A senior project manager could charge AED 2,500 to AED 4,000. Specialists in oil and gas or finance may charge AED 5,000 or more. Location matters too, with Dubai and Abu Dhabi rates typically higher than other emirates.
How many billable days should I plan for?
A full working year has about 260 weekdays. After subtracting public holidays (10 to 12 days), annual leave (20 to 30 days), and gaps between contracts (15 to 30 days), most contractors work 200 to 220 billable days per year. Do not set your rate based on 260 days, or you will earn less than expected.
Should I charge VAT on top of my day rate?
If you are VAT-registered with the FTA (mandatory when your taxable supplies exceed AED 375,000 per year), you must add 5% VAT to your invoices. So a day rate of AED 2,000 would become AED 2,100 including VAT. You then pay the collected VAT to the FTA in your quarterly return.
FTA-Aligned: Based on 2025 FTA rates and regulations. For personal advice, speak to a qualified tax consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms
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