Payroll Outsourcing
in Dubai
One late salary transfer flags your establishment file within 48 hours. By day five, your work permits are frozen. Payroll in the UAE is not an admin task -- it is a compliance exposure that compounds by the hour.
MINISTRY OF ECONOMY REGISTERED PRACTICE
- WPS Processing
- Gratuity Tracking
- MOHRE Compliant
Salary Runs That Protect Your Licence
The penalty for getting payroll wrong in Dubai is not a fine -- it is a frozen establishment file and employees you cannot hire.
WPS Deadlines Hit Every Month
Ministerial Resolution No. 340 of 2026 removed the grace period. Salaries are due on the first of every month. We process and transmit before the cutoff so your file never triggers an automated warning.
Gratuity Accrued, Not Guessed
End-of-service liability is calculated monthly against each employee's tenure and basic salary -- 21 days per year for the first five years, 30 days after that. No December surprises when someone resigns.
Your Establishment File Stays Clean
MOHRE classifies companies by compliance history. A single late WPS submission can drop your category, blocking visa renewals and new work permits. We keep your record spotless.
Payroll Tied to Your Ledger
Every salary journal, leave accrual, and gratuity provision posts directly to your general ledger. Your accountant and your payroll speak the same numbers without a monthly reconciliation exercise.
Every Step Between Timesheet and Bank Transfer
Payroll is not one task -- it is a chain of calculations, filings, and transfers where one error cascades into the next.
Monthly Salary Calculation
Basic salary, housing, transport, and variable allowances computed per employment contract terms with overtime and deductions applied.
WPS File Generation & Transmission
SIF files prepared and submitted through your WPS agent bank or exchange house before the payment deadline every month.
End-of-Service Gratuity Tracking
Running liability calculated per Federal Decree-Law No. 33 of 2021 -- 21 days basic salary per year for years one through five, 30 days from year six onward, capped at two years total.
Leave Salary & Encashment
Annual leave balances tracked per contract, with accrual calculations and encashment amounts computed at separation or year-end.
Payslip Preparation
Individual payslips generated monthly showing gross pay, each deduction, and net transfer amount -- formatted for employee distribution.
MOHRE Records & Reporting
Employee records maintained to MOHRE standards including contract terms, salary changes, and visa-linked employment data.
Payroll Journal Entries
Salary expense, accruals, and employer obligations posted to your accounting system as part of the monthly close cycle.
Overtime & Commission Calculation
Overtime at 125% of hourly rate for standard hours and 150% for night or holiday work, calculated per UAE Labour Law provisions.
Employee Onboarding Payroll Setup
New hire payroll records created from offer letter terms -- salary structure, payment method, WPS registration, and probation tracking from day one.
Termination & Final Settlement
Last working day through final payment -- gratuity, leave encashment, notice period adjustments, and repatriation costs calculated and documented.
Emiratisation Payroll Compliance
Emirati employee salary records maintained against the AED 6,000 minimum wage threshold and Nafis reporting requirements for quota compliance.
Payroll Runs on the Same Calendar as Your Books
Ahmed Mahfoudh Chartered Accountants & Auditors processes payroll as part of a complete accounting engagement. That means the salary run, the WPS file, the gratuity provision, and the general ledger entry all happen in one practice -- not across three vendors who each blame the other when the numbers disagree. We handle payroll for mainland LLCs, DMCC and JAFZA entities, and companies with mixed onshore-offshore staff. Because we also prepare the financial statements and the corporate tax return, every payroll figure flows straight into the reports your auditor and the FTA will review. No reconciliation. No version mismatch.
Where Payroll Goes Wrong in Dubai
The salary calculation is rarely the mistake. The mistake is what happens between the spreadsheet and the bank.
The WPS Window Is Tighter Than You Think
Under Ministerial Resolution No. 340 of 2026, salaries are due on the first of each Gregorian month with no grace period. By day two, the system issues automated warnings. By day five, MOHRE suspends your work permits. By day eleven, fines start at AED 1,000 per affected worker. By day twenty-one, asset attachment and prosecution referral. We transmit the WPS file before any of that starts.
Gratuity Is a Liability, Not a Lump Sum
End-of-service gratuity accumulates from the first year of employment. A company with 30 staff and average five-year tenure carries a six-figure liability that belongs on the balance sheet every month -- not as a shock when three people resign in the same quarter. We calculate and accrue it monthly so the provision is always current.
One Payroll Error Compounds Into Three Problems
An incorrect basic salary figure flows into the WPS file, the gratuity calculation, and the leave encashment. When the employee disputes the final settlement two years later, the trail leads back to a number nobody checked in month one. We validate every salary structure against the signed employment contract before the first payslip is issued.
Establishment Classification Follows You
MOHRE classifies private-sector companies into categories based on compliance behaviour. A company that misses WPS deadlines or underpays wages can be downgraded to a restricted category. That means blocked work permits, rejected visa applications, and a reputation flag that takes months to clear. Payroll compliance is not about avoiding a fine -- it is about keeping your ability to operate.
Final Settlements Are Where Disputes Start
An employee's last payment includes gratuity, unused leave, notice period adjustments, and sometimes repatriation costs. Get any component wrong and the dispute lands at MOHRE or the labour court. We calculate every line item against Federal Decree-Law No. 33 of 2021, document the breakdown, and produce a settlement statement the employee signs before the final transfer.
Your Corporate Tax Return Needs the Payroll Right
Staff costs are typically the largest operating expense on a UAE company's income statement. Under the 9% corporate tax regime, those costs must be accurate and substantiated. If the payroll entries in the ledger do not match the WPS records and the employment contracts, the FTA has three sources to cross-check and a reason to question your return. We make sure all three agree.
Who Runs Your Payroll
Chartered accountants who process salary transfers, not HR generalists who treat payroll as a side task.
Sameh Abdalla
CEO & Founder
Sami Abdallah leads the firm with expertise in accounting, audit, tax advisory, and consulting. He provides strategic guidance and supports long-term business growth across the UAE.
Ahmed Mahfoudh
Audit Manager
Ahmed Mahfoudh manages audit assignments and financial reviews with a focus on accuracy, compliance, and risk assessment. He delivers clear insights to strengthen financial control.
Ahmed Elbadawi
Legal Manager
Ahmed Elbadawi provides legal guidance, contract management, and compliance support. He helps protect business interests, reduce risks, and ensure smooth legal operations.
Ahmed Samir
Tax Manager
Ahmed Samir specializes in UAE VAT, corporate tax, and compliance services. He supports businesses in managing tax obligations while improving financial efficiency and compliance effectively.
HR Teams and Business Owners on Their Payroll
Companies in Dubai that stopped treating payday as a deadline they might miss.
“Accurate salary processing every month without delays. WPS compliance is handled smoothly and employees receive payments on time. A dependable payroll partner.”
“Managing payroll in-house was time-consuming and error-prone. Since outsourcing, the process runs cleanly. Staff are paid correctly and on schedule.”
“Their knowledge of UAE labour law and payroll regulations gives us full confidence. End-of-service calculations, leave balances, and monthly filings are all accurate.”
“Everything is processed correctly and delivered on time. The peace of mind this service provides is valuable for both management and employees.”
“Clear reports, timely payments, and zero compliance issues. Outsourcing payroll reduced our administrative load and improved accuracy across the board.”
“Reliable, discreet, and consistently accurate. Their payroll service handles sensitive data with care and meets every deadline.”
Payroll Outsourcing Questions
What business owners and HR managers in Dubai ask before handing payroll to someone else.
What changed with the new WPS resolution in 2026?
Ministerial Resolution No. 340 of 2026, effective June 1, removed the grace period for salary payments. Wages are now due on the first of each Gregorian month. The compliance threshold increased from 80% to 85%. Enforcement is automated -- warnings start on day two, work permit suspensions on day five, and fines from AED 1,000 per worker on day eleven. The previous system gave employers more time before consequences kicked in.
Who is responsible if the outsourced payroll provider makes an error?
The employer. MOHRE holds the establishment accountable regardless of who processes the payroll. Outsourcing moves the processing, not the liability. That is why your provider's accuracy matters more than their price. We carry professional indemnity and validate every salary run against employment contracts before transmission.
How is end-of-service gratuity calculated?
Under Federal Decree-Law No. 33 of 2021, employees who complete one year of continuous service earn gratuity based on basic salary only -- 21 calendar days per year for the first five years, 30 calendar days per year from year six onward. The total cannot exceed two years of basic salary. Unpaid leave periods are deducted from the service length. We calculate and accrue this monthly so it is never a surprise.
What happens to our establishment file if we miss a WPS deadline?
MOHRE's automated system flags late payments within days. By day five, work permits are suspended -- no new visas, renewals, or amendments. By day eleven, administrative fines of AED 1,000 to AED 5,000 per affected worker are imposed and your establishment may be reclassified to a restricted category. By day twenty-one, MOHRE can attach assets and refer the matter for prosecution. Recovery from a downgraded classification takes months.
Do you handle payroll for free zone companies?
Yes. WPS applies to all MOHRE-registered private sector employers, including JAFZA and DMCC establishments. Free zone companies also have additional reporting requirements to their respective authorities. We process payroll for mainland LLCs, DMCC entities, JAFZA companies, and businesses with staff split across multiple jurisdictions.
What does payroll outsourcing cost?
Monthly processing for a company with 10 to 30 employees typically runs AED 1,500 to AED 5,000 per month depending on salary structures, variable pay components, and reporting requirements. Companies with higher headcounts, multiple entities, or complex commission structures sit higher. We scope after reviewing your employee contracts and current payroll setup.
Can you take over payroll mid-year?
Yes. We need copies of employment contracts, the current year's payroll register, leave balances, and WPS agent bank details. We reconcile year-to-date figures before processing the first month to make sure gratuity accruals and leave balances carry over accurately. The handover typically takes one to two weeks.
How do you handle overtime calculations?
UAE Labour Law prescribes 125% of the hourly wage rate for overtime during standard hours and 150% for overtime between 9 PM and 4 AM or on rest days. The hourly rate is derived from basic salary divided by working hours per month. We calculate overtime per timesheet data and apply the correct multiplier before the salary run.
What about the Emiratisation salary requirement?
Emirati employees must receive a minimum total monthly wage of AED 6,000 effective January 2026. Companies had until June 30, 2026 to comply. After July 1, MOHRE disqualifies non-compliant Emirati hires from Emiratisation quota credits and suspends new work permits. We flag any Emirati salary below the threshold before the payroll is finalised.
Do you prepare payslips?
Yes. Every employee receives a monthly payslip showing basic salary, each allowance, overtime, deductions, and net pay. Payslips are generated as part of the salary run and can be distributed electronically or printed. They serve as the employee's record and are required documentation if any payment is disputed.
What records do we need to keep?
Employment contracts, salary records, WPS transmission confirmations, leave records, and gratuity calculations. Under Federal Decree-Law No. 33 of 2021, employers must retain employment records for the duration of employment plus one year after termination. For corporate tax purposes, payroll records fall under the seven-year retention requirement of Federal Decree-Law No. 47. We maintain digital copies of all payroll documentation.
How does payroll connect to our corporate tax return?
Staff costs -- salaries, benefits, gratuity provisions, visa costs -- are operating expenses that reduce taxable income. Under the 9% corporate tax regime, the FTA expects these costs to be substantiated with employment contracts, WPS records, and ledger entries that all reconcile. If your payroll records disagree with your financial statements, the deduction is at risk during a review.
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