WPS-Compliant Payroll Services in UAE
UAE payroll goes beyond zero income tax, with strict WPS, gratuity, pension, overtime, and leave regulations. SBS HR ensures accurate, compliant, and seamless end-to-end payroll outsourcing in the UAE, every month.
Payroll Outsourcing in the UAE That’s Accurate, Compliant and Off Your Plate
WPS, done properly
Salaries processed and transferred through the Wages Protection System with the correct SIF each cycle, keeping you aligned with MOHRE.
Gratuity accrued correctly
End-of-service gratuity built up as employees earn it, at 21 and 30 days on the last basic wage, so settlements hold no surprises.
GPSSA pensions handled
Pension contributions for UAE and GCC nationals calculated and deducted at the correct emirate rates, every month.
Overtime and leave
Overtime at 25% and 50%, plus annual, sick, maternity and parental leave applied exactly as the labour law requires.
Bilingual payslips
Clear payslips issued in English and Arabic for every employee, with records kept audit-ready throughout.
Free zone & mainland
Whether your entity is in a free zone or on the mainland, we apply the right payroll treatment for it.
The rules behind every UAE payroll run.
A working knowledge of what actually governs UAE payroll, grounded in Federal Decree-Law No. 33 of 2021 and how it is applied in practice.
WPS Salary Transfers
The Wages Protection System is the electronic route through which private-sector employers pay wages, via banks and approved financial institutions overseen by the Central Bank. Each cycle needs a correct Salary Information File.
Applies to
MOHRE & JAFZA firms
Currency
UAE Dirham
Ref: Decree-Law 33/2021, Art. 22 · WPS
End-of-service Gratuity
Full-time foreign workers with one year or more of continuous service earn gratuity on their last basic wage. It accrues as they work and is paid at the end of service.
First 5 years
21 days / year
Beyond 5 years
30 days / year
Overall cap
2 years' wage
Ref: Decree-Law 33/2021, Art. 51
Pensions (UAE & GCC nationals)
There is no income tax on wages, but UAE and GCC nationals are enrolled in mandatory pension and social-security contributions, split between employee, employer and government. Rates differ by emirate.
Dubai (private)
EE 5% · ER 12.5% · Govt 2.5%
Abu Dhabi
EE 5% · ER 15%
Ref: GPSSA / Pensions Law · rates as commonly applied
Overtime
Work beyond normal hours earns the normal wage plus an uplift. Night overtime and rest-day work carry a higher rate. Getting these right matters for both compliance and trust.
Standard overtime
+25% of basic
Night (10pm–4am) / rest day
+50% of basic
Ref: Decree-Law 33/2021, Art. 19
Statutory Leave
Payroll has to reflect leave correctly. The core entitlements are set by the labour law and flow straight into pay and final settlements.
Annual leave
MOHRE & JAFZA firms
Maternity
UAE Dirham
Sick leave
MOHRE & JAFZA firms
Parental
UAE Dirham
Ref: Decree-Law 33/2021, Art. 29–32
Final Settlements
When someone leaves, their dues must be settled promptly. We calculate every component so exits are clean and compliant.
Includes
Gratuity + leave pay
Plus
Notice + ticket, if due
Pay within
14 days of end date
Ref: Decree-Law 33/2021, Art. 53
End-of-Service Gratuity Calculation in the UAE, Done Right
The single most miscalculated item in UAE payroll. Here is exactly how it works, and we accrue it monthly so it never becomes a shock at exit.
First 5 years of service
For each full year of service during the first five years.
Each year beyond 5
For every additional year after the first five.
Worked example:
A full-time employee on a basic wage of AED 10,000 who leaves after 6 years of continuous service earns roughly (5 × 21 days) + (1 × 30 days) = 135 days. On a daily basic of about AED 329, that is around AED 44,400 in gratuity. Calculated on the last basic wage, accrued monthly, and capped at two years' total wage. Illustrative only; your actual figures depend on service, basic wage and contract type.
Everything in a UAE payroll run, handled.
Gross-to-net calculation
WPS transfers & SIF
GPSSA pension deductions
Allowances & benefits
Overtime (25% / 50%)
Leave & encashment
Gratuity accrual
Final settlements
Air-ticket accruals
Bilingual payslips
Payroll & cost reports
Employee queries
The Brands That Trust SBS HR
Outsource UAE Payroll to a Partner Who Knows the Labour Law
Book a free consultation and see exactly how SBS HR would run WPS-compliant payroll, gratuity and pensions for your business in Dubai and across the UAE.
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