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Payroll Management

August 8, 2025 by
FN Accounting and Tax Consultant, FN Accounting and Tax Consultant

Payroll Management – UAE Compliance

We provide accurate, timely, and fully compliant payroll management services in line with UAE Labor Law and the Wage Protection System (WPS) regulations.

Legal Requirements

  • Governed by UAE Federal Decree-Law No. 33 of 2021 (Labor Law) and Ministerial Resolution No. 788 of 2009 (WPS).

  • All salaries for employees on mainland UAE visas must be paid through WPS to ensure compliance.

  • Payments must be made in AED to a UAE bank account approved by the Central Bank.

Our Payroll Services

  • Employee salary calculation (basic pay, allowances, overtime)

  • WPS file generation and submission

  • End-of-service benefits calculation (gratuity, leave encashment)

  • Management of statutory deductions (if applicable)

  • Payslip preparation in Arabic & English

  • Compliance with UAE labor contracts and visa statuses

Retention of Records

Payroll and employee records must be kept for at least 2 years for Ministry of Human Resources & Emiratizations (MOHRE) inspection.

Penalties for Non-Compliance

  • Failure to pay through WPS: Suspension of new work permits and fines starting from AED 1,000 per employee (min AED 5,000, max AED 50,000).

  • Delayed salary payments (over 15 days late): MOHRE may suspend operations and impose fines of AED 5,000–AED 50,000 depending on severity and repetition.

  • Failure to maintain payroll records: AED 10,000 fine.

Value to Clients

  • Ensures smooth and lawful salary disbursement.

  • Prevents costly MOHRE fines and work permit restrictions.

  • Increases employee satisfaction through timely and transparent payments.

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