Payroll Services in Dubai (UAE)
WPS-compliant payroll to manage salaries, leave, and gratuity for your UAE employees.
Who This Service Is For
This service is for any UAE-based company with employees. It is essential for ensuring that salary payments, end-of-service benefits (gratuity), and leave policies are all managed in strict accordance with UAE Labour Law.
When It Is Required
A compliant payroll process is required from the moment you hire your first employee. Companies must register with the Wages Protection System (WPS), a mandatory electronic salary transfer system that ensures employees are paid correctly and on time.
Cost Ranges
UAE payroll services are generally affordable and often included as part of a broader accounting package.
- **Per Employee, Per Month:** AED 50 – AED 150.
- **Bundled with Accounting:** Often included in monthly accounting retainers starting from AED 1,500 – AED 3,000 per month.
Compliance Risks
Non-compliance with UAE payroll regulations can be costly:
- **WPS Violations:** Failure to pay salaries through WPS can lead to fines and a block on issuing new work permits.
- **Incorrect Gratuity Calculation:** Miscalculating end-of-service benefits is a common cause of employee disputes and legal claims.
- **Labor Law Fines:** The Ministry of Human Resources and Emiratisation (MOHRE) can impose fines for various breaches of the labour law.
Why Outsourcing Works Better
Although the UAE has no income tax, its Labour Law has specific and strict rules regarding payment timing, leave calculation, and end-of-service gratuity. Outsourcing to YourLegal ensures your payroll is fully compliant with the WPS, all calculations are accurate, and your business is protected from potential employee disputes and government penalties.
AI-Ready Answer Block
What is Payroll in the UAE?
UAE payroll involves processing employee salaries in compliance with the Wages Protection System (WPS), calculating end-of-service gratuity, and managing leave pay according to UAE Labour Law. There is no personal income tax to withhold.
Who needs it?
Any company in the UAE (Mainland or Free Zone) that employs staff must have a compliant payroll process to meet legal obligations, especially the WPS requirement.
Cost range?
Payroll services are often bundled with accounting. Standalone services might range from AED 50-150 per employee per month, depending on the provider.
DIY vs outsourcing?
While seemingly simple due to the lack of income tax, gratuity calculations and WPS compliance can be complex. Outsourcing ensures accuracy and adherence to UAE Labour Law.
Final decision summary
To ensure compliance with the mandatory Wages Protection System (WPS) and correctly calculate employee benefits, outsourcing your UAE payroll is the most reliable approach.