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ComorosHow is tax on salaries and wages worked out in Yemen?
Under Article 48 of Law 17 of 2010, salary tax applies to everything paid to an employee for their work, whatever it is called, as long as it comes from a source in Yemen, and to pay from a foreign source for work done in Yemen. Article 49 leaves out pension contributions deducted under the law, and allowances that cover work costs, such as travel, transport and representation allowances, within the limits in the regulations.
After social insurance, Article 62 applies: the first 120,000 rials a year is tax free, then 10% on the next 120,000, 15% on the next 600,000 and 20% above 840,000 rials. Monthly: 10,000 tax free, then 10% up to 20,000, 15% up to 70,000, then 20%.
Example: a salary of 100,000 rials a month. Social insurance is 6,000, leaving 94,000. Tax is 1,000 + 7,500 + 20% of 24,000, which is 4,800, for a total of 13,300 rials and net pay of about 80,700 rials.
Why do most salaries now pay the 20% rate?
The band limits were written into the law in 2010 and have not been changed in the version the Tax Authority in Aden publishes. In May 2026 the average market rate was 1,562.49 rials to the dollar, according to the Central Bank of Yemen in Aden.
As a result, the monthly threshold where the 20% rate starts, 70,000 rials, is now worth less than 45 dollars. So most employees fall in the top band, and the effective tax rate gets close to 20% as salary rises.
What is the social insurance rate in Yemen?
Republican Decree Law No. 26 of 1991 on social insurance funds old age, disability and death insurance with 9% of pay from the employer and 6% deducted from the insured person's pay. Work injury insurance is funded by a monthly 4% contribution paid by the employer alone.
The employer pays both shares to the General Corporation for Social Insurance within 15 days of the start of the following month, with a 3% monthly penalty for late payment. Government employees are covered by Insurance and Pensions Law No. 25 of 1991, which has different rules that this calculator does not cover.
How does the Aden and Sanaa split affect tax and pay?
Yemen has two tax authorities and two central banks. The Tax Authority in the interim capital, Aden, reports to the internationally recognised government and publishes Law 17 of 2010. The Sanaa authorities have issued their own amendments, including Law No. 8 of 2020, which exempted small businesses and their employees from tax.
The rial differs too: banknotes in circulation in Sanaa-controlled areas have a completely different exchange rate from the Aden rial. This calculator uses the Aden rules and the exchange rate of the Central Bank in Aden, so if you work in Sanaa-controlled areas your actual deduction may differ.
Who is exempt from salary tax?
Article 50 exempts the income of foreign ambassadors, consuls and diplomats on a reciprocal basis; the income of non-Yemenis working for international organisations or under agreements with the government to provide aid to Yemen; work injury compensation; retirement pensions and end-of-service entitlements; and the income of daily-wage workers, within the limits in the regulations.
A Yemeni working for an international organisation is not covered by this exemption, because the article applies only to non-Yemenis.
How are freelance work and small businesses treated?
Net income from non-commercial professions and business profits of resident individuals are taxed at the same Article 62 bands. Very small businesses with annual turnover of no more than 1,500,000 rials and no more than three workers are outside profit tax under Article 43.
Owners of small businesses must withhold salary tax from their employees and pay it every three months, within the first ten days of the fourth month.
Practical tips
Check on your payslip that your social insurance share was deducted before tax was worked out, because the law leaves pension contributions out of taxable pay. Keep proof of allowances that cover real work expenses, as they are left out of taxable pay within the limits in the regulations.
If you are paid in dollars or Saudi riyals, tax is worked out in Yemeni rials after conversion, and the exchange rate used changes the result a lot. This calculator gives an estimate and is not tax advice.
For expats
Yemenis in Saudi Arabia and the Gulf send home a large share of household income in Yemen, and personal remittances are not salary subject to Yemeni salary tax. Salary tax applies to pay from a source in Yemen, so a salary paid by an employer abroad for work done abroad falls outside Article 48. The social insurance law lets a Yemeni working abroad contribute 15% of an income band they choose, if they have no pension in the country where they work. When sending money, watch the exchange rate gap between Aden and Sanaa areas.
Income tax rates
| Annual taxable income (YER) | Rate |
|---|---|
| 0 to 120,000 | 0% |
| 120,000 to 240,000 | 10% |
| 240,000 to 840,000 | 15% |
| Over 840,000 | 20% |
Annual brackets from Article 62 of Law 17 of 2010. The monthly equivalent: the first 10,000 rials exempt, then 10% on the next 10,000, then 15% on the next 50,000, then 20% on anything above 70,000 rials a month. They apply to the wage after the pension instalment (the employee social insurance share) is deducted. The limits have not changed since 2010, despite the collapse in the value of the rial.
Other taxes that matter in Yemen
Capital gains
Article 9 of Income Tax Law No. 17 of 2010 makes capital gains, including gains on selling shares, stakes and business assets, subject to tax on commercial and industrial profits. We could not confirm the rate for individuals from an official source; a Deloitte summary (secondary) says they are treated as ordinary income and that sales of land and property are taxed at 1%. The rules may differ between the Sanaa and Aden authorities.
Dividends
According to a Deloitte summary (a secondary source covering the rules applied in Sanaa), no tax is withheld on dividends paid to a resident individual, and individuals' income from shares in joint-stock companies is exempt. We could not confirm the text of this exemption from an official source, and practice may differ in Aden.
Crypto
We found no Yemeni law or published circular from the Central Bank of Yemen that regulates, bans or sets tax on cryptocurrencies. The legal and tax position is unsettled.
Inheritance
There is no estate or inheritance tax in Yemen, according to a Deloitte summary (secondary source). Estates are divided under the Islamic inheritance rules in the Personal Status Law.
Property and wealth
There is no general wealth tax, but Muslims pay zakat under Zakat Law No. 2 of 1999. A Deloitte summary (secondary) mentions an annual property tax equal to one month's rent on the property's rental value; we have not confirmed this from an official source.
Tax residency
Under Article 3 of Income Tax Law No. 17 of 2010, an individual is resident if they have a permanent home in Yemen, stay there at least 183 days in a 12-month period ending in the tax year, or are a Yemeni working abroad and paid from Yemen. We found no published official procedure for getting a tax residency certificate from the Tax Authority. The split of authority between Sanaa and Aden may affect which body issues it.
Retirement and pensions
The General Corporation for Social Insurance pays private-sector pensions. We could not confirm from an official source how local or foreign pensions are taxed. There is no retirement visa for foreigners.
Cost to the employer
Social Insurance Law No. 26 of 1991 sets an employer share of 9% for old age, disability and death insurance and 4% for work injury insurance, against 6% paid by the worker, and covers both Yemenis and foreigners in the private sector. A Deloitte summary (secondary) gives 11% for the employer and 7% for the worker in Sanaa, plus a 1% levy for the vocational training fund, which conflicts with the published text of the law. We found no cap on insurable pay.
Social insurance
| Contribution | Employee | Employer | Applies to | Cap |
|---|---|---|---|---|
| Old age, disability and death insurance (Law 26 of 1991) | 6% | 9% | Workers in the private and mixed sectors | No cap in the text of the law |
| Work injury insurance | 0% | 4% | Workers in the private and mixed sectors | No cap in the text of the law |
Work out your own pay in Yemen
Instant result, monthly and yearly, with every deduction itemised.
Common questions about taxes in Yemen
What is the tax-free amount on salaries in Yemen?
The first 10,000 rials a month (120,000 rials a year) of pay after social insurance is tax free, under Article 62 of Law 17 of 2010.
What are Yemen's salary tax bands in 2026?
Monthly: 0% up to 10,000 rials, 10% from 10,000 to 20,000, 15% from 20,000 to 70,000 and 20% above 70,000 rials. These are the bands in Law 17 of 2010 as published by the Tax Authority in Aden.
What is the employee social insurance rate in Yemen?
6% of pay from a private-sector employee, 9% from the employer for old age, disability and death insurance, and a further 4% from the employer for work injury.
What is the net pay on a 100,000 rial salary in Yemen?
6,000 rials go to social insurance and 13,300 rials to tax, leaving about 80,700 rials a month under the Aden rules.
Is tax different in Aden and Sanaa?
It can be. The Tax Authority in Aden applies Law 17 of 2010, while the Sanaa authorities have issued their own amendments, such as Law 8 of 2020, which exempted employees of small businesses. The currency itself also has a different exchange rate in the two areas.
Is social insurance deducted before salary tax in Yemen?
Yes. Article 49 leaves pension contributions out of taxable income, so the employee's social insurance share comes off before the bands apply.
Do international organisation staff pay tax in Yemen?
Article 50 exempts non-Yemenis working for an international organisation or under an aid agreement with the government. A Yemeni working for such an organisation is not covered by this exemption.
Are retirement pensions and end-of-service pay taxed in Yemen?
No. Article 50 of Law 17 of 2010 exempts retirement pensions, end-of-service entitlements and work injury compensation.
Sources
- Law No. 17 of 2010 on Income Taxes, Articles 48, 49, 50, 62 and 63 (file from the Tax Authority in Aden) Official source · checked 2 October 2026
- Tax Authority in Sanaa: Law No. 8 of 2020 amending Law 17 of 2010 (for comparison, not applied in the calculator) Official source · checked 2 October 2026
- Republican Decree-Law No. 26 of 1991 on Social Insurance, Articles 27 and 49 (Official Gazette text reproduced, University of Minnesota Human Rights Library) Official source · checked 2 October 2026
- Central Bank of Yemen (Aden): periodic bulletin, April to June 2026 Official source · checked 2 October 2026
- Central Bank of Yemen (Aden): monetary and financial developments, February 2026 Official source · checked 2 October 2026