Phase 1 · Live · HR Finance

Staff Affordability Calculator

In the UAE, the cost of a hire is not the monthly salary. End of Service Benefit accumulates throughout employment and becomes a lump-sum obligation on exit. This tool calculates your total monthly commitment — salary plus EOSB provision — and shows whether your current surplus can safely absorb the hire.

How to read your result

  • 20%+ surplus remaining — Comfortable: Hiring creates a manageable obligation with headroom for unexpected costs. Maintain EOSB provision discipline.
  • 10–20% surplus — Tight but viable: The hire is affordable but leaves limited margin. Do not add further headcount until the first cohort is cash-flow neutral.
  • Below 20% or effective surplus squeezed — Caution: Including EOSB provision, the true cash commitment leaves thin headroom. Consider phasing the hire or building reserves first.
  • Surplus eliminated or negative — Do not hire yet: The salary alone consumes your surplus. Resolve the underlying profitability issue before adding headcount.

What this tool does not do

  • Account for visa fees, medical insurance, and one-time onboarding costs
  • Model the revenue contribution of the new hire against the cost
  • Reflect allowances, bonuses, or commissions in the salary base
  • Calculate EOSB accurately for unlimited contracts with early termination
This tool is a decision-support aid and does not constitute financial advice.
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