What is basic salary in UAE labour law, and what percentage of total salary should it be?

There is no single fixed ratio you can point to in UAE labour law, so the split between basic salary and allowances comes down to how your employer structures the package — and you should confirm the current position rather than rely on a commonly repeated figure. Start with what "basic salary" actually means. It is the core fixed portion of your pay, before allowances such as housing, transport and other benefits are added. Basic plus allowances together make up your total, or gross, salary. Your registered MOHRE contract should state the basic figure and the breakdown of allowances, so that is the document to check first. The distinction matters because, under the Labour Law (Federal Decree-Law No. 33 of 2021), several entitlements are calculated on basic salary rather than on the gross figure. End-of-service gratuity is the main one. A low basic component relative to allowances can significantly reduce what you eventually receive, even when your total package looks generous. Two offers with the same headline total can leave you with very different long-term benefits. On the percentage question specifically: the Labour Law is administered by MOHRE, and because the precise treatment of basic-to-total ratios can be set by implementing regulations and guidance, the safest step is to verify the applicable rule with MOHRE for your own situation. When you review a contract or an offer, do not look only at the headline total. Look at the basic figure itself and how it feeds your benefits. If your contract lumps everything together, or the basic figure looks unusually low, ask HR to explain the structure in writing. To check whether your salary breakdown is fair and compliant, confirm the position with MOHRE and compare verified UAE legal professionals on LEXAI.