A two-year employee visa renewal is built from a short stack of fixed government fees plus whatever margin your provider adds on top. The government portion of a mainland renewal sits comfortably in the low four figures, yet many owners are quoted AED 3,000 to AED 7,000 or more per person. By the end of this guide you can read any renewal quote line by line and see exactly what is a real fee and what is markup.
Bottom Line
- A mainland two-year renewal is a small stack: work permit, residency, Emirates ID, medical, and health insurance.
- The residency renewal step is an official AED 300 per year at ICP; the Emirates ID is AED 100 per year.
- Work permit fees vary by company classification; the official u.ae portal lists the range as AED 250 to AED 3,450.
- Most of the gap between government cost and your quote is provider markup and free-zone package structure.
- By law the employer must bear the residency and work permit costs of the renewal.
Renewal cost versus the quote you receive
The honest answer has three layers: fixed government fees, variable authority or free-zone charges, and provider margin. The government components of a mainland two-year renewal typically total well under AED 2,000 in official fees. Many owners, though, see quotes of AED 3,000 to AED 7,000 or higher per employee. Most of that difference is markup and package structure, not government cost.
That does not mean every provider is overcharging. Free zones genuinely bundle their own charges, and some markup covers real administrative work. The problem is that bundled "all-in" numbers hide the split, so you cannot tell a legitimate cost from padding. Once you know the six real components, you can read any quote and ask the right questions.
Renewal also belongs on your wider planning calendar. If you want the full year of deadlines in one view, our owner's compliance calendar maps what falls due and when.
The six real cost components
An employee residence renewal is built from six line items, most of them fixed government fees. The work permit and residency steps carry official published prices; the medical test and insurance vary by centre and plan. Understanding each one lets you rebuild the government-fee portion of any quote from scratch and compare it to what you are being charged.
Below is the honest itemization for a standard two-year mainland renewal.
1. Work permit (MOHRE)
The work permit fee depends on your company's MOHRE classification, so there is no single number that fits every business. The official u.ae portal lists the issuing and renewal range as AED 250 to AED 3,450, with the exact figure set by your category. Most permits are valid for two years, so this fee recurs at each renewal. Ask your provider which category applies to you.
2. Residency permit renewal (ICP)
The residency step has a clear official price: AED 300 per year, made up of a AED 100 application, AED 100 per year renewal, and AED 100 smart service. For a two-year renewal that is AED 600. Processing through ICP smart services takes around two days and is available online.
3. Emirates ID
The Emirates ID card is charged at AED 100 per year of residence validity, so a two-year renewal is AED 200. An urgent express option adds AED 150. Typing-centre form fees are small: AED 10 design plus AED 30 verification. The Emirates ID renewal for owners and investors works differently from employees, which we cover in our Emirates ID renewal guide for company owners.
4. Medical fitness test
A medical fitness test, including TB screening, is required of expatriates renewing a residence visa. MOHAP does not publish a fixed fee, and approved centres price by speed. A standard test in Dubai is commonly quoted at around AED 250, with express and VIP tiers higher; the DHA centre publishes its current pricing schedule. Treat any single figure as directional and confirm with your chosen centre before you budget.
5. Mandatory health insurance
Health insurance is employer-provided and mandatory. The cost varies by plan, age, and emirate, so there is no single official figure to quote here. It is a real cost, not a markup, but it should appear as its own clearly labelled line, not folded into a vague service fee.
6. Free-zone and establishment-card charges
If you operate in a free zone, expect establishment card, quota, entry-permit, and portal charges bundled into the renewal. These are legitimate authority fees, published in each free zone's own schedule. We cover how they stack up in the next section. To identify the applicable authority and renewal order before treating bundled charges as one item, review this licence and establishment-card dependency guide.
Before treating those bundled items as one record, identify which company-side establishment record controls the renewal.
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Where a UAE employee visa renewal cost comes from (mainland 2-year, per employee)
Source: Government components: u.ae and ICP official service cards (2025-2026). The work permit fee is category-dependent (u.ae range AED 250 to AED 3,450); a low-category figure is shown for illustration. The provider-quote range is illustrative of common market quotes, not an official figure.
Why the same visa costs different amounts on mainland versus free zone
The difference comes down to structure. A mainland renewal draws on the MOHRE and ICP or GDRFA government fees fairly directly. A free zone bundles its own establishment card, visa quota, entry-permit type, and portal charges into a single package on top of those steps. So an identical job title can carry two different price tags depending on where the company sits.
Free zones publish their own numbers. DMCC, for example, processes member visa renewals through its portal in three to five working days and maintains its own published schedule of charges. That schedule is the authoritative source for DMCC members, and fees can change without notice.
The honest way to compare is to put the free zone's schedule of charges next to the mainland government stack, rather than trusting a single "all-in" number. Free zone is not automatically cheaper or more expensive. It depends on the package.
Where the markup hides in a provider quote
Markup usually hides inside labels that sound official but are not government fees. Watch for "service fee", "PRO fee", "processing", and "typing" lines that dwarf the underlying government charge. A AED 300 residency step can quietly become AED 1,500 once a processing line is stacked on top. The line is legitimate; the size is where you push back.
Express and VIP upcharges are another hiding place. A fawri Emirates ID adds AED 150 at the counter, and an express medical test costs more than standard. Providers can pass these on with their own margin layered in. Ask whether express speed is genuinely needed for your timeline.
The biggest red flag is a bundled quote that prevents line-by-line comparison. If a provider refuses to show the government-fee portion, or adds NOC or exit charges when you want to switch away, treat that as a signal. A provider confident in its pricing has no reason to hide the split. Our employment visa service itemizes the government fees separately from our fee so you can verify every line.
Which deadlines and fines can't you afford to miss
The processing is fast; the deadlines are where owners get hurt. Residence visa holders get a 30-day grace period after expiry, after which overstay fines accrue at AED 50 per day. A late Emirates ID carries its own separate daily fine, so confirm the current amount with ICP before you assume you are only exposed to the visa fine.
Passport validity matters too: it must have at least six months remaining at renewal. Because ICP processing is around two days, the delays are almost always document collection, not the government itself. Start early.
Family visas follow their own timeline once your own renewal is done, which we walk through in the dependent and family visa renewal guide.
Who legally pays the renewal bill
This is the point owners forget: it is your bill, by law. Under the UAE labour law, the employer must bear the costs of the work permit and residency permit. It is the company's obligation, not a cost you can shift onto the worker as part of employment.
Passing renewal fees onto staff invites trouble rather than saving money. It exposes the company to penalties and to the reputational damage of a labour complaint. The safer path is transparency: a provider that itemizes each government fee lets you confirm you are paying only legitimate costs, and lets you demonstrate compliance if anyone ever asks.
Frequently asked questions
How much does it really cost to renew an employee's visa in the UAE?
The government-fee portion is smaller than most expect. The residency step is an official AED 300 per year at ICP, the Emirates ID is AED 100 per year, and the work permit runs from AED 250 to AED 3,450 depending on your MOHRE category, plus a medical test and health insurance.
Who legally pays for a UAE employee visa renewal?
The employer. UAE labour law places the work permit and residency costs on the company, not the worker. Treat the renewal as a business expense you owe, budget for it each cycle, and keep the itemized fees on file so you can show exactly what was paid and by whom.
Why is my free-zone renewal more expensive than a mainland one?
Because a free zone adds its own package on top of the same government steps. Establishment card, quota, entry-permit and portal fees stack into one number, while a mainland renewal draws on MOHRE and ICP fees more directly. Put the free zone's published schedule of charges beside the mainland stack before you judge which is dearer.
What happens if I miss the renewal deadline?
Residence visa holders get a 30-day grace period, then overstay fines of AED 50 per day. A late Emirates ID carries its own separate daily fine on top, so check the current amount with ICP. Since ICP processing is around two days, the real risk is leaving document collection too late.
How can I tell if a renewal quote is padded?
Ask for a line-by-line breakdown that separates the government fees (work permit, ICP residency, Emirates ID, medical) from the provider's service fee. If the provider bundles everything into one number, refuses to show the government portion, or adds NOC or exit charges when you want to switch, those are the usual padding tactics.
Read the quote, then decide
You now have the six components and the official prices behind them. When your next renewal quote arrives, rebuild the government-fee portion, set it beside the total, and ask what the difference buys. That single habit protects your budget and keeps you compliant with the law on who pays.
If you would rather have the split done for you, with each government fee shown next to our fee, book a call and we will itemize your renewals so there are no surprises.