Payroll Services in Dubai
WPS Processing, Gratuity Accounting and Payroll Outsourcing Under the 2026 Rules
Credora provides payroll services in Dubai built for the rules that took effect on 1 June 2026: salaries are now due through the Wage Protection System on the 1st of each month, the old 15-day grace period is gone, and MOHRE blocks new work permits from Day 5 of a delay. Our payroll outsourcing team calculates gross to net, submits the SIF file through your bank or exchange house, books gratuity and leave accruals into your ledger, and keeps the WPS confirmations the new rules require you to hold as evidence.
Free first consultation · Fees agreed before work starts · Payroll, books and tax with one accountable team
Payroll and WPS in Dubai at a Glance (2026)
Quick answer: from 1 June 2026, salaries must be paid through the Wage Protection System by the 1st of each month under Ministerial Resolution No. 340 of 2026, and the 15-day grace period is abolished. An employer is compliant only if at least 85% of wages due are paid on time. Payroll services in Dubai typically cost AED 25 to 75 per employee per month, with small-company packages from AED 500 to 1,500 per month.
WPS 2.0 Enforcement
Enforcement is automatic under WPS 2.0: warnings on Day 2, new work permits blocked from Day 5, fines and classification downgrade from Day 11, automatic labour dispute from Day 16, asset attachment and Public Prosecution referral from Day 21.
Gratuity Accounting
Gratuity is calculated on basic salary only: 21 days per year for the first five years, 30 days after, capped at two years’ wages.
Emiratisation
Emiratisation: companies with 50+ employees must reach 10% Emirati skilled staff by 31 December 2026; the shortfall costs AED 108,000 per missing hire per year. Emiratis must earn at least AED 6,000 per month, with existing contracts updated by 30 June 2026.
Free Zone Payroll Rules
DIFC and ADGM run their own wage and savings regimes (DEWS and GCEN); DMCC, JAFZA and most other free zones follow MOHRE WPS.
What Do Payroll Services in Dubai Include?
Payroll services in Dubai cover the full monthly cycle: calculating each employee’s gross-to-net pay, submitting the salary file through the Wage Protection System, issuing payslips, and booking the accruals, gratuity, leave, air tickets, into the accounting ledger. A complete payroll processing service includes:
Gross-to-net calculation
basic salary and allowances per the MOHRE-registered contract, overtime at 25% (or 50% for night hours), unpaid leave and other lawful deductions.
WPS processing
the Salary Information File (SIF) prepared and submitted through your approved bank or exchange house so funds clear by the 1st of the month.
Payslips and registers
itemised payslips per employee and a payroll register that ties to the ledger, every cycle.
End-of-service and leave accruals
gratuity, annual leave (30 days), and benefit provisions calculated monthly and posted to the books, so the liability is visible before a resignation tests it.
Final settlements
end-of-service calculations on termination or resignation, with the 14-day settlement deadline under the Labour Law tracked.
Statutory administration
GPSSA pension registration and monthly contributions for Emirati staff, and ILOE unemployment insurance tracking (AED 5 or 10 per month per employee, with a AED 400 fine for non-subscription).
Evidence retention
WPS confirmations, SIF acknowledgements and payroll records archived to the standard the new rules and the 7-year Corporate Tax requirement expect.
Payroll processing is a monthly deadline with a ledger behind it. Because our bookkeeping team posts the same numbers the payroll run produces, the salary expense, the accruals and the WPS payments reconcile. This is exactly what an auditor and the FTA check.
What Is the Wage Protection System (WPS) in the UAE?
The Wage Protection System is MOHRE’s mandatory electronic salary transfer system, run with the UAE Central Bank. Every private-sector employer registered with MOHRE must pay salaries through an approved bank or exchange house using a Salary Information File (SIF), and the system monitors every payment automatically. Cash salaries and informal transfers are not a legal payment method for MOHRE-registered staff. There is no exemption for small companies or single-employee businesses.
Since the December 2025 upgrade, WPS runs in near real time: the platform connects MOHRE, the Central Bank and Al Etihad Payments (including Aani instant payments and the Jaywan card), and each SIF is validated against the employment contracts in MOHRE’s registry. A late or short payment is flagged within hours. No employee complaint and no inspection are needed for penalties to start.
Free zones: DMCC and JAFZA require WPS, and most free zones now follow MOHRE’s system; DIFC and ADGM run their own employment regimes with their own savings schemes (DEWS and GCEN) instead of gratuity. If your licence sits in a free zone, the first task in any payroll services engagement is confirming which regime governs you. Assuming the wrong one is how fines start.
New WPS Rules From 1 June 2026: What Resolution 340 Changed
Ministerial Resolution No. 340 of 2026 replaced the 2022 rules on 1 June 2026. Salaries for each month are now due on the 1st of the following month, the 15-day grace period is abolished, and an employer is compliant only if at least 85% of total wages due are paid on time. Enforcement runs on an automatic clock:
| Days After the Due Date | What Happens |
|---|---|
| Day 1 | MOHRE monitoring is live from the due date, the 1st of the month. |
| Day 2 | Electronic notifications and warnings are issued to the employer. |
| Day 5 | New work permits are blocked, and hiring stops until wages are settled. |
| Day 11 | Administrative fines (AED 5,000 per affected employee, up to AED 50,000 per incident) and downgrade to Third Category classification for repeat violations within six months. |
| Day 16 | A labour dispute is registered against the company automatically. |
| Day 21 | Asset attachment measures and referral to Public Prosecution, with personal exposure for the owners and managers who decided to delay. |
Three details employers miss:
The 85% threshold is a compliance buffer, not a permission to underpay. Employees keep the full legal right to every dirham; the threshold only determines when the automatic sanctions engage.
Some cases do not count as violations: employees with wage cases before the courts, absconding reports, documented unpaid leave, new joiners in their first 30 days, and short-term permits of up to three months, among the categories MOHRE lists.
Higher-risk sectors get closer enforcement: construction, transport and storage, security, cleaning, recruitment agencies and domestic-worker offices are specifically flagged. Outsourcing the payroll run does not outsource the liability. The establishment remains responsible even when an agent processes the file.
How Much Do Payroll Services Cost in Dubai?
Payroll outsourcing in Dubai typically costs AED 25 to 75 per employee per month. Teams under 10 staff usually pay AED 80 to 120 per head, while companies with 100+ employees negotiate down to AED 20 to 40. Packaged services run from AED 500 to 1,500 per month for small companies and AED 1,500 to 3,500 for a fully managed 20 to 30 person payroll. The bands, by scope:
| Scope | Typical Dubai Market Rate | Notes |
|---|---|---|
| Per-employee managed payroll | AED 25 to 75 / employee / month | Small teams pay AED 80 to 120 per head; 100+ headcounts reach AED 20 to 40 |
| Small-company package (up to ~10 staff) | AED 500 to 1,500 / month | Calculation, SIF submission, payslips, accrual schedules |
| 20 to 30 staff, fully managed | AED 1,500 to 3,500 / month | Adds leave management, final settlements, GPSSA and ILOE administration |
| 50 to 200 staff | AED 2,000 to 5,000 / month | Volume pricing; multi-entity and free zone/mainland splits add complexity |
| One-time items | Setup AED 1,000 to 5,000; WPS bank/exchange fee AED 5 to 15 per transfer | Setup covers data migration and system configuration; the transfer fee is charged by the WPS agent, not the payroll firm |
For comparison, one in-house payroll or HR officer costs AED 8,000 to 15,000 a month once visa, insurance and gratuity load the salary. A single person is also a single point of failure against a deadline that now arrives twelve times a year with a Day-5 penalty behind it.
Ask any provider one filter question: what date do funds clear, and who is watching the bank cut-off before the 1st?
Credora’s payroll services are quoted at a fixed monthly fee per headcount band, in writing, with the payroll calendar attached.
How Is Gratuity Calculated in the UAE?
End-of-service gratuity is calculated using the employee’s basic salary, excluding allowances. The entitlement is 21 days of basic pay for each year of service during the first five years and 30 days for each additional year, subject to a maximum of two years’ total wages. Completed years are calculated in full, while part of a year is calculated proportionately after the employee completes one year of service.
UAE Gratuity Calculation Example
An employee earning a basic salary of AED 10,000 leaves after completing seven years of service. Daily basic pay is calculated as AED 10,000 × 12 ÷ 365 = AED 328.77. For the first five years: 5 × 21 days = 105 days × AED 328.77 = AED 34,521. For years six and seven: 2 × 30 days = 60 days × AED 328.77 = AED 19,726. The total estimated gratuity is AED 54,247. The calculation is based on the AED 10,000 basic salary, not the employee’s AED 16,000 total monthly package.
Why the Basic Salary Structure Matters
The division between basic salary and allowances directly affects the employee’s end-of-service gratuity. Employers and employees should therefore review the salary structure carefully when preparing or renewing the employment contract, rather than waiting until the employee leaves the company.
Alternatives to the Standard Gratuity System
Employers may also use approved alternatives to the standard gratuity system. Under the voluntary end-of-service savings scheme introduced by Cabinet Resolution No. 96 of 2023, employers can make monthly contributions to licensed investment funds. Once an employee joins the scheme, traditional gratuity stops accruing from the enrolment date, while any gratuity earned before enrolment remains separately payable. In the DIFC, the DEWS plan replaced traditional gratuity in 2020 with mandatory monthly contributions of 5.83% of basic salary, increasing to 8.33% after five years of service. ADGM also applies a separate end-of-service benefit framework.
Regardless of the end-of-service arrangement, the liability should be recorded regularly in the company’s accounts. Businesses with several long-serving employees may carry a substantial gratuity obligation. Our payroll services calculate and post the monthly accrual so the balance sheet, cash-flow forecast and audit records remain consistent.
UAE Payroll Compliance Requirements for 2026
UAE employers should monitor the following payroll deadlines, wage requirements, employee registrations and recordkeeping obligations throughout 2026:
Salary Payment by the 1st of Each Month
Ministerial Resolution No. 340 sets the first day of the month as the unified salary due date. Payroll data should normally be collected between the 20th and 25th, followed by review, approval and early SIF submission to the bank or exchange house. Public holidays and banking cut-off times should be considered before the payment file is submitted.
Emirati Minimum Wage
Emirati employees in the private sector must receive a minimum monthly salary of AED 6,000 from 1 January 2026. Existing employment contracts should be updated by 30 June 2026. From 1 July, non-compliant Emirati employees may not count towards the company’s Emiratisation target, and work permit services may be affected. Salary compliance can be checked through WPS records.
Emiratisation Requirements
Private-sector companies with 50 or more employees must work towards the required Emiratisation percentage for skilled positions by 31 December 2026. Financial contributions may apply for each required Emirati position that remains unfilled. Companies with 20 to 49 employees in designated sectors may also be required to employ a specified number of Emirati nationals. Employers should review their expected year-end headcount well in advance.
ILOE Unemployment Insurance
ILOE premiums are AED 5 per month for employees earning up to AED 16,000 and AED 10 per month for employees earning above that amount. Although the employee is responsible for the subscription, employers should verify coverage during onboarding and renewal to reduce the risk of fines and employment-related delays.
GPSSA Registration for Emirati Employees
Eligible Emirati employees must be registered with the General Pension and Social Security Authority. Employers must calculate and remit the required monthly pension contributions in line with Federal Decree-Law No. 57 of 2023. Late registration or delayed contributions may result in penalties.
Payroll Records for Seven Years
Payroll registers, WPS confirmations, payslips and final settlement calculations form part of the company’s accounting records. These records should be retained for seven years under the Corporate Tax framework, and salary expenses reported in the accounts should match the supporting payroll and WPS records.
How Our Payroll Services in Dubai Work
Our payroll services follow a fixed monthly schedule designed to complete the salary process before the required payment date:
Payroll Setup and Parallel Run
We review employee contracts registered with MOHRE, confirm basic salary and allowance details, check the WPS agent arrangement and complete a parallel payroll run before taking over the monthly process.
Monthly Payroll Data Submission
Overtime, new employees, resignations, unpaid leave, bonuses and deductions are submitted by an agreed monthly cut-off using a standard template or the company’s HR system.
Payroll Calculation and Approval
We calculate gross salary, deductions, benefits and net pay, then send the payroll register for management approval before finalising the payment file.
SIF Preparation and Submission
The Salary Information File is prepared and submitted to the company’s bank or exchange house with sufficient time for processing before the salary due date.
Payslips and Accounting Entries
Employee payslips are issued and the monthly salary expense, gratuity provision, leave accrual and related payroll entries are posted to the accounting records.
Payroll Records and WPS Evidence
WPS acknowledgements, salary payment confirmations, payroll registers and supporting records are saved for each payroll period and kept available for compliance reviews.
Our Payroll and WPS Services in Dubai
Our payroll services in Dubai are agreed in writing and managed alongside our accounting and tax services, helping businesses keep payroll records, WPS payments and financial reports properly aligned.
Monthly Payroll Processing and SIF Preparation
Monthly salary calculations, payroll registers and Salary Information File preparation for submission through the company’s approved bank or exchange house.
WPS Registration and Support
Assistance with WPS registration, agent agreements, Establishment Card checks and rejected SIF corrections, including employee contract and salary data mismatches.
Gratuity and Leave Accrual Accounting
Monthly end-of-service gratuity and leave provisions calculated using the applicable salary details and recorded in the company’s accounts.
Employee Final Settlement Calculations
Final settlement calculations covering gratuity, unused leave, notice pay, salary balances and approved deductions, prepared within the applicable payment period.
GPSSA and ILOE Support
Support with pension registration and monthly contributions for eligible Emirati employees, together with ILOE coverage checks during onboarding and renewal.
Emiratisation and Salary Compliance Checks
Review of Emiratisation targets, Emirati salary requirements and expected employee numbers to help businesses identify compliance gaps before year end.
Payslips, Payroll Registers and Records
Preparation of employee payslips, monthly payroll registers, WPS confirmations and supporting payroll records for accounting, audit and tax purposes.
Payroll Migration and Record Correction
Transfer of payroll from an internal team or previous provider, including a parallel payroll run and correction of incomplete accrual schedules or employee settlement records.
Why Choose Credora for Payroll Outsourcing in Dubai?
Credora Consultancy LLC is an FTA registered tax agency (TAAN 20056628) led by chartered accountants and located on Sheikh Zayed Road, Al Barsha, Dubai. We are also an independent member of EAI International. Our payroll services are managed together with accounting and tax support, helping businesses keep salary expenses, gratuity provisions, WPS records and Corporate Tax figures consistent. We provide payroll outsourcing services for mainland and free zone companies across Dubai, Sharjah and the wider UAE.
Need Payroll Services in Dubai?
Share your employee headcount, company jurisdiction and monthly payroll requirements with our team. We provide a clear monthly quotation, an agreed payroll calendar and a parallel first run before taking over the process. The first consultation is free.
Frequently Asked Questions: Payroll and WPS in Dubai
Is WPS mandatory in the UAE?
Yes, for every private-sector employer registered with MOHRE, regardless of size — including single-employee companies. Salaries must be paid through an approved bank or exchange house using a Salary Information File. DIFC and ADGM run their own employment regimes; DMCC, JAFZA and most other free zones follow MOHRE WPS.
When are salaries due under the new WPS rules?
On the 1st of each Gregorian month for the previous month's wages, under Ministerial Resolution No. 340 of 2026, effective 1 June 2026. The previous 15-day grace period is abolished. Funds must have cleared by the due date — issuing a transfer instruction on the 1st is not payment.
What happens if salaries are paid late in the UAE?
Enforcement escalates automatically: warnings on Day 2, new work permits blocked from Day 5, administrative fines (AED 5,000 per affected employee, up to AED 50,000 per incident) and classification downgrade from Day 11, an automatic labour dispute from Day 16, and asset attachment with Public Prosecution referral from Day 21. Detection is automatic — no employee complaint is needed.
What does the 85% WPS compliance threshold mean?
An establishment is treated as compliant only if at least 85% of the total wages due are paid on time. It is a regulatory buffer for legitimate discrepancies such as disputed cases — not permission to pay 85% of salaries. Employees keep the full legal right to every unpaid amount.
What is a SIF file in WPS?
The Salary Information File is the standardised electronic file listing each employee, their Labour Card number and the wage paid, submitted through your bank or exchange house. Under WPS 2.0 it is validated in real time against the employment contracts registered with MOHRE — mismatched basic salaries or missing employees cause rejections that can delay the whole run.
Which employees are excluded from WPS violations?
MOHRE's list includes employees whose wage complaints are before the courts, those under an absconding report, employees on documented unpaid leave, new joiners in their first 30 days from the due date, workers on permits of up to three months, and certain categories such as bank and financial-institution staff — each with supporting documents submitted to MOHRE.
Do free zone companies use WPS?
Most do. DMCC and JAFZA require salaries through WPS, and most free zones now follow MOHRE's system. DIFC and ADGM are the main exceptions, with their own employment regulations and savings schemes (DEWS and GCEN) in place of gratuity. Confirm your zone's rule before assuming either way.
Can salaries be paid through an exchange house instead of a bank?
Yes. Central Bank-approved exchange houses are valid WPS agents, commonly used for workers without bank accounts, who receive wages on salary cards. The agent charges roughly AED 5 to 15 per employee per transfer.
How much does payroll outsourcing cost in Dubai?
Typically AED 25 to 75 per employee per month, with small teams paying AED 80–120 per head and 100+ headcounts negotiating to AED 20–40. Packages run AED 500–1,500 per month for small companies and AED 1,500–3,500 for a managed 20–30 person payroll, plus one-time setup of AED 1,000–5,000 and the WPS agent's AED 5–15 transfer fee.
Is gratuity calculated on basic salary or gross salary?
Basic salary only, as confirmed on the UAE Government's official portal. Housing, transport and other allowances are excluded even when they are most of the package. The entitlement is 21 days of basic pay per year for the first five years and 30 days per year after, capped at two years' wages.
How much gratuity for 7 years of service?
On a basic salary of AED 10,000: daily pay is 10,000 × 12 ÷ 365 = AED 328.77; the first five years earn 105 days (AED 34,521) and years six and seven earn 60 days (AED 19,726) — a total of about AED 54,247. Scale the same formula to any basic salary.
What is the alternative end-of-service savings scheme?
A voluntary scheme under Cabinet Resolution No. 96 of 2023 where the employer pays monthly contributions into licensed investment funds instead of accruing gratuity. Once an employee is enrolled, traditional gratuity stops accruing for them, and gratuity earned before enrolment is calculated and settled separately. DIFC's DEWS works on the same logic and is mandatory there, at 5.83% of basic salary (8.33% after five years).
What is ILOE and who pays for it?
The mandatory unemployment insurance scheme. Premiums are AED 5 per month for salaries up to AED 16,000 and AED 10 above that, and the fine for not subscribing is AED 400 per employee. It is the employee's subscription, but unpaid fines create friction on the establishment's file, so payroll should verify coverage at onboarding and renewal.
Which companies do Emiratisation rules apply to?
Companies with 50 or more employees must grow Emirati skilled staff 2% per year, reaching 10% by 31 December 2026, at AED 9,000 per month (AED 108,000 per year) per unfilled position. Companies with 20–49 employees in the 14 MOHRE-designated sectors carry fixed minimum Emirati headcounts. Emirati hires also must meet the AED 6,000 monthly minimum wage to count toward the quota.
If I outsource payroll, who is liable for WPS compliance?
The establishment remains legally liable even when an agent or provider processes the file — the delegation should be documented, but it does not transfer responsibility. What outsourcing changes is execution: a provider whose calendar clears funds before the 1st removes the operational reasons payments run late.
Can you take over payroll mid-year from another provider?
Yes. Our payroll services team loads the MOHRE-registered contracts, rebuilds accrual balances from service dates, reconcile year-to-date figures, and run one cycle in parallel before switching. Handover typically takes two to three weeks, timed so a live payroll date is never at risk.
