The short answer
Mainland companies must pay salaries through the Wage Protection System (WPS), and many Free Zones have their own payroll rules. We prepare the WPS salary file every month, issue payslips, track leave and provide for end-of-service gratuity (21 days of basic salary per year for the first five years, 30 days after that, capped at two years' wages), and post payroll to your books.
How WPS works
- Your company is registered with the Ministry of Human Resources and Emiratisation and a WPS agent: an approved bank or exchange house.
- Each month, a salary information file lists every employee, their salary and the account it goes to.
- You fund the payment and the agent pays every employee.
- The Ministry sees the payments and checks that salaries match the contracts and are paid on time.
Salaries for the previous month are due on the 1st of each month. Pay late and the Ministry sends alerts from day 2, stops new work permits from day 5, can fine the company from day 11 and opens a labour complaint from day 16 (u.ae, Ministerial Resolution 340 of 2026). So we prepare payroll early enough for you to approve it and pay on time.
Your payroll month with us
- You tell us the changes: new joiners, leavers, unpaid leave, bonuses, deductions.
- We calculate payroll and send it to you for approval.
- We prepare the WPS file for your bank or exchange house.
- Payslips are issued to every employee.
- Payroll is posted to your books, with gratuity and leave provisions updated.
End-of-service gratuity
Under the UAE Labour Law, full-time employees with at least one year of continuous service are entitled to end-of-service gratuity based on their basic salary:
| Years of service | Gratuity |
|---|---|
| First 5 years | 21 days of basic salary for each year |
| After 5 years | 30 days of basic salary for each additional year |
| Maximum | No more than two years' wages in total |
We keep a gratuity provision in your books every month, so the payment never comes as a surprise. Some Free Zones have their own schemes, which we follow where they apply.
Leave rules every payroll must follow
Leave changes what an employee is paid that month, and what you owe them when they leave. These are the main private-sector entitlements:
| Leave | Entitlement |
|---|---|
| Annual leave | 30 fully paid days a year after one year. From 6 months to 1 year: 2 days per month worked |
| Sick leave | Up to 90 days a year after probation: 15 days full pay, 30 days half pay, 45 days unpaid |
| Maternity leave | 60 days: 45 on full pay, 15 on half pay |
| Parental leave | 5 paid working days, for mothers and fathers, within six months of the birth |
| Bereavement | 5 paid days for a spouse; 3 for a parent, child, sibling, grandchild or grandparent |
| Study leave | 10 paid working days a year for exams, after two years of service |
Unused annual leave is paid out in the final settlement, so we keep every employee's leave balance up to date in payroll.
Joiners and leavers
- Joiners: contract, work permit and visa (see PRO services), then added to WPS from their first salary.
- Leavers: final settlement with unpaid salary, leave balance and gratuity, paid within 14 days of the last working day, then the work permit and visa are cancelled.
- Changes: salary changes match the contract on file, or WPS flags a mismatch.
Payroll in your books
Salaries are usually a company's biggest cost. When payroll and bookkeeping are done by the same team, your profit, gratuity provision and corporate tax return are all built on the same numbers. See bookkeeping and accounting services.
Free Zone, mainland and DIFC payroll
| What changes | |
|---|---|
| Mainland | WPS is required. Contracts and work permits sit with the Ministry of Human Resources and Emiratisation |
| Free Zones | Each zone sets its own rules for employment and salary payment; many follow WPS. Visas and permits go through the zone |
| DIFC | Has its own employment law, and an employee savings plan replaces end-of-service gratuity |
| UAE and GCC nationals | Pension contributions on top of salary, registered with the pension authority |
Payroll mistakes that cost employers money
- Salary in WPS different from the contract. The system flags it, and the company can be blocked from new permits.
- Gratuity worked out on total salary instead of basic salary, or not provided for at all, so a large bill lands when someone leaves.
- Leave balances kept in a spreadsheet nobody updates, leading to disputes at the final settlement.
- Final settlement paid late, beyond the 14 days the law allows.
- Payroll not in the books, so salary costs, provisions and the corporate tax return don't match.
How we help
| You send us | You get back |
|---|---|
| Changes for the month: joiners, leavers, leave, bonuses, deductions | Payroll calculation to approve |
| Your approval | WPS salary file ready for your bank or exchange house |
| Nothing else | Payslips, updated leave balances, gratuity provision and payroll posted to your books |
Payroll calculation is included in our Scale accounting plan and available on its own. One fixed monthly price, confirmed on a free call.
Sources
- UAE government portal: end-of-service benefits
- UAE government portal: types of leave in the private sector
- Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations
- Ministry of Human Resources and Emiratisation