Payroll Services in UAE
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Payroll services in UAE cover the full monthly cycle — salary calculation, WPS-compliant payments through MOHRE, payslips, end-of-service gratuity, and GPSSA and ILOE contributions — run accurately and on time. We register you on WPS, process each payroll run, keep you compliant with MOHRE and UAE labour law, and handle leave, gratuity and final settlements. Whether you have two employees or two hundred, on the mainland or in a free zone, we keep your people paid correctly and your business penalty-free. Because the same team also runs your corporate tax services, VAT services and bookkeeping & accounting, payroll ties straight into your filings — and it all sits within our full corporate services.
Why Legarithm for UAE payroll
Payroll services in UAE go wrong when WPS deadlines and gratuity rules are treated loosely.
Pay salaries late on WPS and MOHRE can suspend your work permits, fine you and block new visas; miscalculate end-of-service gratuity and you underpay or overpay leavers; skip GPSSA enrolment for Emiratis and penalties follow. Legarithm registers you on WPS, runs each payroll accurately, files contributions on time and calculates gratuity to the law. It’s the same team that runs your corporate tax and bookkeeping, so payroll ties straight into your accounts.
Key benefits of payroll services in UAE
A UAE payroll service keeps your people paid on time and your company clear of MOHRE penalties — here's what stands out.
Who payroll services in UAE are for
Payroll services in UAE fit any UAE employer that pays staff through WPS — from a small team to a large workforce.
SMEs & startups
Small teams that need WPS payroll without an in-house function.
Growing companies
Businesses scaling headcount across the mainland and free zones.
Free-zone employers
Companies paying staff under free-zone and WPS rules.
Companies hiring Emiratis
Employers managing GPSSA enrolment and Emiratisation targets.
Foreign & remote-first firms
Overseas companies employing in the UAE — often alongside company formation.
Businesses with high turnover
Employers with frequent joiners and leavers needing clean settlements.
What payroll services in UAE include
Payroll services in UAE run the whole monthly cycle — from salary calculation and WPS payment to gratuity and reporting — as one managed engagement.
WPS registration & setup
Your business enrolled on the Wage Protection System.
Monthly salary runs
Gross-to-net calculated with allowances and deductions.
WPS salary payments
Electronic payment files submitted through MOHRE channels.
Payslips
Compliant, itemised payslips issued to every employee.
End-of-service gratuity
Final settlements and gratuity calculated to the law.
GPSSA & ILOE
Emirati pension and unemployment-insurance contributions.
Leave & labour compliance
Annual, sick and other leave tracked to UAE labour law.
Payroll reporting
Monthly reports that reconcile to your accounts.
Not sure if your WPS is set up right?
Send us your headcount and salaries and we’ll confirm your WPS status and monthly cycle.
Comparing your UAE payroll options
Payroll services in UAE are handled three ways — in-house, by a generic accountant, or with Legarithm.
| Factor | DIY / in-house | Generic accountant | Legarithm |
|---|---|---|---|
| WPS timing | Deadline often missed | Handled if flagged | Paid inside the WPS window |
| Gratuity accuracy | Error-prone | Basic calculation | Calculated to the law |
| GPSSA & ILOE | Often missed | Sometimes | Enrolled and filed |
| MOHRE compliance | You handle it | Limited | Full labour-law compliance |
| Confidentiality | Internal exposure | Varies | Ring-fenced and private |
| Cost of errors | Fines & permit blocks | Possible penalties | Penalty exposure designed out |
Get payroll services in UAE off your plate — start this month
Tell us your headcount and salaries; we’ll confirm your WPS setup and run your next payroll on time. The initial consultation is free and confidential.
What we need from you
Four tabs, each listing the inputs we collect to register, run and report payroll.
- Trade licence and establishment card
- Company bank account details for WPS
- MOHRE and immigration establishment numbers
- List of employees with salaries and start dates
How payroll services in UAE work
Payroll services in UAE run as a clear five-step monthly cycle from setup to reporting.
The cost of payroll services in UAE
There’s no single government fee — payroll services in UAE are priced per employee and per pay run.
What drives your cost:
| Cost driver | What it depends on | Note |
|---|---|---|
| Headcount | Number of employees on payroll | Priced per employee |
| Pay frequency | Monthly or off-cycle runs | Extra runs add cost |
| Setup | WPS registration and onboarding | One-time at the start |
| Gratuity & settlements | Leavers in the period | Calculated per case |
| GPSSA & ILOE | Emirati and insured staff | Contribution filing per employee |
Priced per employee and per run — setup, monthly payroll, or a full retainer with gratuity and reporting. Employee-paid ILOE runs AED 5–10/month plus VAT. General info, not legal or tax advice — request a quote.
Frequently Asked Questions
Still have questions?
What is the WPS in the UAE?
The Wage Protection System is a MOHRE and Central Bank platform that requires employers to pay salaries electronically each month; wages unpaid after 15 days are late and can trigger fines and work-permit suspensions.
Is there personal income tax on salaries?
No — the UAE has no personal income tax, so salaries are paid gross with no PAYE deduction and employees keep their full pay.
How is end-of-service gratuity calculated?
After one year of service, gratuity is 21 days’ basic pay per year for the first five years and 30 days per year after that, now paid at the full rate even on resignation.
What are GPSSA contributions?
For UAE and GCC nationals, the employer contributes 12.5% of salary, the employee 5% and the government 2.5% in the private sector, with enrolment within 30 days of joining.
What is ILOE unemployment insurance?
A mandatory employee-paid scheme: AED 5/month for basic salaries up to AED 16,000 and AED 10/month above, plus VAT, giving eligible workers up to three months of cover.
How often must salaries be paid?
At least once a month, electronically through WPS; salaries unpaid within 15 days of the due date are considered late.
Do free-zone companies use WPS?
Most do — many free zones follow WPS or an equivalent; we set up the correct route for your zone.
Payroll in-house or outsourced — which is better?
In-house works at large scale with a dedicated team; for most SMEs outsourcing is cheaper and removes WPS and gratuity risk. We advise on the right fit.
Does payroll affect corporate tax?
Yes — salaries are deductible business expenses, so clean payroll supports your corporate tax position; we align both.
Can you take over an existing payroll?
Yes — we migrate your employee data, WPS setup and prior calculations, then run the next cycle without a gap, often alongside our accounting services.
We Are Always Available
Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.
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