Making Charges & Wastage Explained: What UAE Jewellers Charge
Demystifying making charges (craftsmanship fees) and wastage in Dubai. How jewellers calculate labor, difference between machine and handmade, and how to negotiate.
What Are Making Charges?
When purchasing unworked gold (such as a 1kg or 10-tola bar), you pay nearly pure spot metal price. However, when purchasing jewellery, raw gold must be melted, drawn into wire, stamped, intricately hand-engraved, assembled, and polished. The cost for this skilled labor and manufacturing loss is termed making charges (or craftsmanship fees).
The Two Ways Jewellers Quote Making Charges
In Dubai jewellery stores, you will encounter two quoting methods:
- Percentage-Based: A percentage added to the metal value (e.g. 10% making charge on a 22K chain).
- Flat Per-Gram Charge: A fixed Dirham fee added to every gram (e.g. AED 20 per gram).
Typical Making Charges by Jewellery Style
- Simple Machine Chains & Plain Bands: AED 10 to AED 18 per gram (approx. 5% to 8%).
- Laser-Cut & Hollow Bangles: AED 18 to AED 30 per gram (approx. 8% to 14%).
- Handcrafted Filigree & Temple Designs: AED 30 to AED 60 per gram (approx. 15% to 22%).
- Exclusive Designer / Antique Bridal Collections: Up to AED 80+ per gram (approx. 25%+).
Understanding "Wastage" (Kada/Melting Loss)
Historically, goldsmiths incurred metal loss during cutting and filing, charging customers an additional percentage termed "wastage". In Dubai's modern, transparent retail landscape, reputable jewellers bundle all labor, casting loss, and overhead into a single, transparent Making Charge item on your tax invoice.
UAE Gold Price & Making Charge Calculator
Calculate exact retail price with customizable weight, purity, jeweller making charges, and 5% VAT.