United Arab Emirates Payroll Outsourcing

United Arab Emirates Payroll Outsourcing

United Arab Emirates Payroll Outsourcing-This beautiful country is a federation composed of 7 Emirates. Similarly, most businesses establishing in the country look to incorporate in Dubai, Abu Dhabi, or one of the approximately 45 trade zones. However, the consolidation process may seem simple, many organizations find it laborious to comply with the UAE’s regulations and other requirements on the payroll.


United Arab Emirates Payroll Outsourcing, Compensation and Benefits

United Arab Emirates Payroll Outsourcing-In PEO Middle East we are committed to assisting you in every step of the different tasks you face when you are establishing in the UAE. Likewise, we ensure all our partners comply with the labor and employment laws of the country while we take care of the costly and time-consuming processes.


Table of contents

  1. Taxation Rules in the country
  2. Payroll options for businesses in the country
  3. Setup in the United Arab Emirates
  4. Termination and entitlement terms
  5. Wages Protection System
  6. Benefits of working with us in the UAE
  7. Why PEO Middle East is best for United Arab Emirates Payroll Outsourcing?
United Arab Emirates Payroll Outsourcing

Taxation Rules

Employer taxes are not mandatory in the UAE; this is one of the reasons why foreign investors choose Dubai as a business destination. Similarly, the country does not mandate corporate income taxes; exempting specific industries such as companies in the gas and oil industries and branches of foreign banks.

On the other hand, in PEO Middle East we suggest you accrue 8.4% of the worker’s compensation for the end-of-service gratuity or benefit.

Payroll options for businesses in the country

Certainly, businesses have multiple corporate structures for incorporation and onboarding; thus, there are 4 options for the payroll of your business:

  • Internal: larger branch offices run their payroll through an in-house HR team. Similarly, this option is expensive since you need to employ a complete HR team.
  • Remote: If your parent company is running a payroll already you can include your workers in the UAE in that payroll. Moreover, you must follow different labor laws based on the different locations in each set of workers.
  • A local payroll processing company: if you decide outsourcing is the best option for your business, you can choose a local UAE payroll processing entity. In the same vein, you are still accountable for all the compliance mistakes of their work.
  • Outsourcing Services with us: companies in the UAE can also choose us to take care of their different payroll processes. Consequently, this is the best option for you since we have the best team of experts assisting you in the process.

Setup in the United Arab Emirates

If you choose the DIY version or you want to know the process to set up payroll in the country; first you need to establish a branch office. However, there is a different process for the type of entities you incorporate as; but you are required to settle your branch office’s setup before you can manage the payroll.

In addition, you need a local bank account and you must pay your registered employees under the WPS (Wage Protection System).

Termination and entitlement terms

When there is a termination of the contract in the United Arab Emirates, companies owe their workers some type of severance. That is to say, employees who have worked for your business for a continuous year or more must receive severance or benefit for the length of their service.

For instance, workers with service of more than 1 year but less than 5 have the right to 21 days of payment; while employees that worked for more than 5 years receive 30 days of pay per year of service.

Wages Protection System

The government of the country implemented a salary system in 2009 allowing institutions and businesses to pay employees’ salaries. Thus, this is done via financial institutions approved by the Central Bank.

The Ministry of Labor and the Central Bank developed the Wages Protection System to ensure full and timely payment of salaries through a database. In addition, businesses failing to comply with this process face fines and sanctions and will not be able to acquire work permits.

Companies must select 1 or more banks licenses by the Central Bank to participate in this system.

  • Firstly, once the business’ authorized bank receives the wages, it sends a notification to the WPS.
  • Secondly, the system sends the employees’ wages and details along with the transfer instructions digitally to the central bank of the country.
  • The details are sent to the Ministry of Labor database to ensure the details receive are the same as those registered at the Ministry.
  • After that, the system sends the approved information to the agent to start paying the salaries.

However, this system covers all organizations which have their workers registered with the Ministry across all industries and sectors. Likewise, this will also benefit different categories of employment.

Benefits of working with us in the UAE

  1. Complete services: our comprehensive solutions, centralized platform, and our team of experts will take care of your payroll to ensure effectiveness.
  2. Taxes: working with us you ensure you have comfort and peace of mind to focus on the activities of your company.
  3. Additional services: by working with us you can select among our comprehensive services aimed to make your business grow.
  4. Easy payments: in PEO Middle East we make the payment process easy and efficient for you.
  5. Compliant payroll: our team of experts will make sure all your payroll processes comply with the different labor laws of the country.
  6. Fast processing: we like to process our partners’ payroll on time to ensure the well-being of your workers; this way they will receive all their due payments in time.

Why PEO Middle East is the best option for United Arab Emirates Payroll Outsourcing?

We understand that you need a focused partner providing you with ongoing assistance. In the same vein, the labor laws of the UAE have strong employee protection policies; in PEO Middle East we are aware of the best local practices in United Arab Emirates Payroll Outsourcing.

Similarly, having an automated payroll is the best way to ensure the happiness and comfort of you and your employees. Therefore, we provide our partners in the country with broad solutions and services aimed to improve their business.

Thus, if you want us to start working side-by-side with you or if you have more inquires on United Arab Emirates Payroll Outsourcing; you can reach us via [email protected]. Or you can call us at +971 433 1 688 if you prefer.

United Arab Emirates Payroll Outsourcing and Benefits

United Arab Emirates Payroll Outsourcing-An international workforce is an essential tool for your company's growth. Expansion comes with a few hurdles, though. Managing your team in a single office involves several administrative tasks. Those responsibilities become even more challenging when you have employees around the world.