Skip to content

Insights · Payroll

UAE payroll & WPS guides.

Paying staff correctly in the UAE means more than running salaries — it means WPS-compliant transfers, accurate payslips, end-of-service gratuity, leave tracking and labour-law obligations that carry real penalties when missed. This hub collects our payroll guides for Dubai employers. You'll find plain-English walkthroughs of the Wages Protection System, how to calculate end-of-service gratuity to the day, how leave and overtime are treated, and what records to keep for a labour inspection. There are step-by-step walkthroughs of UAE payroll calculation — from gross salary and allowances through deductions to the WPS file — because payroll calculation in UAE companies has to reconcile to both the labour contract and the accounting records. We also cover the accounting side — how payroll flows into your books and where it interacts with VAT and corporate tax. Each guide is written for owners and HR or finance staff who want to get payroll right without wading through the full labour law. Read to understand the process, then talk to us about payroll and WPS processing support — the same scope payroll outsourcing companies in Dubai and payroll management services quote for, delivered alongside your accounting. If you run payroll in-house, the guides also flag where HR and payroll software earns its place.

What you'll find

All 25 Payroll guides we've published for UAE SMEs, newest first. Each one translates the rule into what your books, filing calendar and next decision actually need.

FAQs

Payroll questions, answered

  • What is the Wages Protection System (WPS)?

    WPS is the UAE electronic salary-transfer system that requires employers to pay staff through approved channels so wages are recorded and paid in full and on time. Most mainland employers must process payroll through WPS, and non-compliance can affect labour-file services.

  • How is end-of-service gratuity calculated in the UAE?

    Broadly, gratuity is 21 days' basic wage for each of the first five years of service and 30 days' basic wage for each subsequent year, based on the final basic salary and subject to conditions. The exact figure depends on service length and contract terms.

  • How is payroll calculated in the UAE?

    Start from the gross salary in the employment contract, split into basic wage and allowances — the split matters because gratuity and several end-of-service entitlements are computed on the basic wage. Add any overtime due under the labour law, apply only authorised deductions, and process the net pay through the Wages Protection System where WPS applies. Alongside the monthly run, accrue end-of-service gratuity and leave so the accounts carry the true cost of employment rather than discovering it when someone resigns.

  • What payroll records should employers keep?

    Employers should retain payslips, WPS transfer records, employment contracts, leave and overtime records and end-of-service calculations. These support labour-law compliance and feed accurately into the accounting records and, where relevant, corporate tax.

Velmont Crest accounting advisor — Dubai SME engagement

Book a consultation

Free 30-minute call. Pressure-free.

Reply within 1 UAE business day · Data stored in UAE · Not shared