Free resource · UAE market entry

EOR vs Free Zone vs Mainland: cost calculator

Model the real first-year and ongoing cost of each hiring route before you commit — adjust every assumption to match the quotes you've actually received.

Figures based on published 2026 UAE setup-cost and EOR pricing ranges  ·  Directional estimate, not a quote  ·  Built by Zephora Consulting

Your scenario

Every number below is editable — start with your own quotes if you have them.
Employer of Record
Typical UAE EOR fees run ~AED 1,500–3,000/mo per employee, bundling visa, WPS payroll, and gratuity admin.
Free zone entity
License renewal, flexi-desk/office, PRO and compliance admin.
Mainland entity
Includes EJARI office lease — the biggest swing factor for mainland.

Employer of Record

No entity required
Year 1 total
Ongoing / year
Per employee / year

Free Zone entity

100% foreign ownership
Year 1 total
Ongoing / year
Per employee / year

Mainland entity

Trades anywhere in UAE
Year 1 total
Ongoing / year
Per employee / year

Year 1 total cost, compared

EOR
Free Zone
Mainland

Break-even point

What this calculator assumes
  • EOR fee bundles visa sponsorship, WPS-compliant payroll, and gratuity accrual management — that's why it has no separate visa line.
  • Free zone and mainland "ongoing overhead" covers license renewal, office/flexi-desk, and PRO/compliance admin — this is the single biggest lever in the comparison, so adjust it first if you have real quotes.
  • Visa and Emirates ID costs are shown as an annualized figure (actual visas typically run 2 years).
  • Gratuity liability (roughly 5.8% of basic salary per year for the first five years) applies under all three models and isn't shown separately here, since it doesn't change which structure is cheaper.
  • Excludes salary costs themselves, corporate tax, and one-off costs like legal review or bank account opening delays.
  • This is a planning tool, not a quote — always confirm current fees with your chosen free zone authority, DED, or EOR provider.