Payroll services in Dubai and the UAE: set up in 2 to 5 days
Each month we calculate the payroll of your team in Dubai or another emirate, send the salary file through WPS, the state Wage Protection System, and issue the payslips.
- Gratuity after 3 years
- AED 16,800
- Earned in the current year
- AED 5,600
- To set aside a month
- AED 467
UAE gratuity calculator: 21 days of basic pay for each of the first 5 years, 30 days for each year after.
How WPS payroll works in Dubai and the UAE
1stSalaries through the Wage Protection System
A UAE employer pays salaries once a month through the Wage Protection System, WPS, which the Central Bank built for the labour ministry. The salaries of a month fall due on the 1st of the next one. No income tax is withheld. For expatriate staff no pension is paid either: the employer owes an end-of-service gratuity when the employee leaves.
4Things a company holds before the first pay run
- An establishment card and a file with the labour ministry or free zone
- A WPS arrangement: see opening a business bank account in the UAE
- Work permits, written contracts and residence visas for your staff
- Registration with the pension authority for each UAE or GCC national
2 to 5 daysFor us to set up your payroll on WPS
In 2 to 5 days we enrol your company on WPS with a bank or an exchange house approved by the Central Bank and load the employees and their salaries. You hand over the establishment card, which is the company's immigration file, with the trade license, the bank account details for WPS and the list of employees with salaries and start dates.
Payroll contributions in the UAE: pension, gratuity and insurance
For a UAE national on a pensionable salary under AED 20,000 the state pays 2.5 points of the employer's share.
| Who and what | Employer pays | Employee pays |
|---|---|---|
| Income tax, all staff | 0% | 0% |
| Pension, expatriate staff | None: a gratuity is owed at the end of service | None |
| Pension, UAE national first employed since 31 October 2023 | 15% of the pensionable salary | 11% |
| Pension, UAE national employed earlier | 12.5% | 5% |
| Pension, national of another GCC state | By the law of the home state | By the law of the home state |
| End-of-service gratuity | 21 days of basic pay a year, 30 from the sixth year | Nothing |
| Unemployment insurance | Nothing | AED 5 a month on basic pay up to AED 16,000, AED 10 above |
What clients write about Legarithm
4.8 on Google from 26 reviews.
We had long been looking for someone to register a company in the UAE and help with the account. With Legarithm it went as it should: a clear process, help with the documents, no red tape.
Everything is well coordinated and clear. Half an hour of the first meeting was more useful than two weeks of trying to work it out myself.
What a payroll month in the UAE contains
- 2 to 5 days1
We set up WPS
At the start we enrol your company on WPS and load the employees and their salaries.
- 1 to 2 days2
You send the changes
You enter joiners, leavers, bonuses, leave and overtime in your account.
- 1 to 2 days3
We calculate the salaries
We work out each salary from gross to net, with allowances and deductions.
- by your pay date4
Salaries and payslips go out
We submit the salary file through WPS for the due date, the 1st of the month, and each employee receives an itemised payslip.
- each month5
We report to your books
We file the contributions, accrue gratuity and leave, and send the payroll report for your accounts.
Gratuity calculation in the UAE: a worked example for a salary of AED 15,000 a month
An expatriate employee earns AED 10,000 of basic pay and AED 5,000 in housing and transport allowances.
| Line | Amount |
|---|---|
| Basic pay | AED 10,000 a month |
| Housing and transport allowances | AED 5,000 a month |
| Gross salary | AED 15,000 a month |
| Income tax and pension withheld | AED 0 |
| Paid to the employee through WPS | AED 15,000, due on the 1st |
| Unemployment insurance, paid by the employee | AED 5 a month |
| Gratuity accrued, paid by the employer at the end | AED 583.33 a month, AED 7,000 a year |
| Gratuity for each year after the fifth | AED 10,000 a year |
AED 7,000A year of service, on basic pay alone
Gratuity counts basic pay alone: allowances stay out of the sum. One day is the basic monthly pay divided by 30, so a year of service earns AED 10,000 ÷ 30 × 21 = AED 7,000. After 5 years the employee has earned AED 35,000, and from the sixth year 30 days, a full AED 10,000, for each year.
AED 583.33A month of gratuity, booked with unused leave
Unused leave is paid on basic pay in the same way. We keep both accruals in your books month by month, the gratuity at AED 583.33 on this salary, so the cost of a settlement is already there when it falls due. The employer has 14 days from the end of the contract to pay it.
Gratuity for a year = basic monthly pay ÷ 30 × 21 days, and × 30 days from the sixth year.
What payroll services cost in Dubai and the UAE
Prices are before VAT.
Payroll for your UAE company
Fixed in your quoteYou get the figure in writing by the end of the next working day.
Get a quote- Monthly pay run through WPS, by the number of employees
- in your quote
- A second pay run in the same month
- in your quote
- One-off setup on WPS
- in your quote
- Final settlement of a leaver
- in your quote
- Accounting with the VAT and corporate tax returns, a month
- from $350
The labour ministry's calendar for a late salary
85%What counts as paid on time
The Wage Protection System asks for at least 85% of the total wages to be paid on the due date, which leaves room for lawful deductions. From the second day the ministry acts by a fixed calendar. Our work is to file before day 1, and these are the days the law counts after it.
1stThe file is ready before it
We prepare the salary file ahead of the due date, the 1st, and tell you in advance how much the company's account has to hold. You approve the run in your account, and the bank pays each employee. We send each employee an itemised payslip.
| Day after the due date | What the ministry does |
|---|---|
| From day 2 | Sends notices to the company |
| Day 5 | Stops issuing new work permits |
| Day 11 | Imposes a fine and moves the company to the third category |
| Day 16 | Registers a labour dispute and suspends work permits |
| Day 21 | Orders the wages paid, attaches assets and bans travel |
What else our payroll service in the UAE covers
When an employee leaves, we calculate the gratuity, the unused leave and any advances. The employer pays the settlement within 14 days of the end of the contract.
We track 30 days of paid annual leave and, after probation, sick leave of up to 90 days a year: 15 on full pay, 30 on half pay and 45 unpaid. Maternity leave is 60 days, 45 on full pay and 15 on half pay.
The law's minimum for an overtime hour is the basic hourly wage plus 25%, or plus 50% in its place between 10 pm and 4 am, shift work aside. Work on a rest day earns a day off or basic pay plus 50%.
We register each national with the pension authority in the first month of employment and file the monthly contributions.
We set up the salary channel your zone requires and run it each month, for a free zone company in the UAE as for a mainland one.
We move your employee data, WPS setup and past calculations, and run the next month without a gap.
Payroll outsourcing in the UAE: which employers we run payroll for
Small teams
A company with a handful of employees and no payroll clerk of its own. We run WPS for a team of 2 as for one of 200.
Companies that hire UAE nationals
Pension registration in the first month and the two contribution rates, 15% and 11%, applied to the right salary.
Foreign companies with staff in the UAE
A head office abroad and a UAE company that employs locally. Payroll starts with the first hire, often right after formation.
Employers with many joiners and leavers
Each joiner is loaded before the first run and each leaver is settled within the 14 days.
What we need from you to run the payroll
Documents
To set up
- Trade license and establishment card
- Company bank account details for WPS
- Labour ministry and immigration establishment numbers
- List of employees with salaries and start dates
- UAE and GCC nationals: Emirates ID, joining date and basic salary
Each month
- Joiners and leavers
- Salary changes, bonuses and deductions
- Leave, overtime and unpaid days
- Approved timesheets, where you use them
- For a leaver: last day, accrued leave and any advances
You send them in your account. We check each document the day it arrives and tell you what is missing.
See the platformQuestions about payroll services in Dubai and the UAE
How does payroll work in Dubai?
Each month the employer calculates gross pay and sends a salary file through WPS, the Wage Protection System, and the bank pays each employee. Salaries for a month are due on the 1st of the next, no income tax is withheld, and gratuity accrues on basic pay.
Can I outsource my payroll?
Yes. A UAE employer may hand its payroll to an outside provider and remains the employer. We set up WPS in 2 to 5 days, run each month and report to your books.
What is WPS in the UAE?
The Wage Protection System: the channel through which the labour ministry sees every salary payment. Employers pay through banks and exchange houses that the Central Bank has approved.
How is end-of-service gratuity calculated?
On basic pay: 21 days for each of the first 5 years and 30 days for each year after, once the employee has 1 year of service. Basic pay of AED 10,000 gives AED 7,000 a year, and the total is capped at 2 years of pay.
Do free-zone companies pay salaries through WPS?
Free zones use WPS or a system of their own, and we set up the one your zone requires. DIFC adds a rule: its employers pay 5.83% of basic salary into the DEWS savings plan for each employee, and 8.33% after five years of service.
Is there income tax on salaries in the UAE?
No. The UAE levies no personal income tax, so salaries are paid in full. The company's own profit falls under corporate tax in the UAE, where salaries are a deductible cost.
Can you take over a payroll that is already running?
Yes, often together with accounting in the UAE. We move the employee data, the WPS setup and the past calculations, and the next month runs without a gap.
Get a quote for your UAE company
Book a 30-minute call about your company
Your consultant Vladyslav Babaiev Opens in a new tab Business Setup Specialist
- We email you the Google Meet link.
- 30 minutes, free, no obligation to order.
- After the call we email you the checklist of documents for your country.
We reply by the end of the next working day with the cost and the dates for your case. The first call is free and confidential.
Also for a company in the UAE
Accounting in the UAE
Books, VAT and corporate tax returns from $350 a month
OpenResidence visas in the UAE
Investor, staff and family visas through your company, in 1 to 3 weeks
OpenCorporate tax registration in the UAE
Every company registers within 3 months, 0% up to AED 375,000 and 9% above
OpenCompany formation in the UAE
Free zone from $7,000, mainland from $8,000, offshore from $3,000
OpenGuides to a company in the UAE
All guides to a company in the UAE
Updated 19 October 2026. Reviewed by Vladyslav Drapii, Founder.
