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Payroll services in Dubai take over the monthly job of working out what each employee is paid and getting it to them on time. The Wage Protection System (WPS) is the electronic salary payment system run by the Ministry of Human Resources and Emiratisation (MOHRE) and banks. We hold no verified WPS rules on this site, so confirm the current requirements with MOHRE before you rely on anything here.
What payroll outsourcing covers
In general terms, a provider can handle:
- Calculating salaries and any additions or deductions from your inputs.
- Producing payslips.
- Preparing the salary payment file for your bank.
- Keeping a payroll record for each employee.
- Passing the payroll totals to your accountant for the books.
Some providers also work out leave pay and end of service amounts. Others leave that to you. Ask which.
Where WPS fits
WPS is the way salaries are paid and recorded through banks. A payroll provider usually prepares the data. Who submits it, and who is liable if it is wrong or late, comes down to your agreement.
We do not state deadlines, penalties or thresholds here because we have not verified them. MOHRE is the source for those.
Payroll and your books
Payroll is a cost that runs through your ledger every month. If the payroll provider and your bookkeeping service are different firms, agree who sends the monthly journal and in which format. A mismatch between the two is a common cause of year-end clean-up.
Payroll is also one of the scope lines you can bundle into broader accounting services. Compare it on the same basis as the rest of the quote.
What to ask a provider
- What is included in the monthly fee, and what is billed on top?
- Who prepares the bank file, and who approves it?
- What do you need from me, and by which day each month?
- What happens if a salary run is late or wrong because of your side, and because of ours?
- Where are employee records kept, and can I take them with me?
Use the quote form on this page to ask several firms the same questions.
Setting it up
Before the first run, gather employee names, contract salaries, allowances, bank details and start dates. Agree a cut-off date for changes each month, so new joiners and leavers reach the provider in time. Run one month in parallel with your old method and compare the totals. Fix differences before you switch over.
Choosing a provider
Pick on scope and clarity, not only fee. Ask for a sample payslip and a sample payroll report. Check who handles questions from your employees. Check how the provider protects salary data, and what it does with it if you end the contract. Confirm in writing who is responsible for each WPS step, and check the current MOHRE guidance yourself.
Payroll mistakes that cost time
Late changes are the usual cause. A leaver reported after the cut-off, an allowance that changed without notice, or a wrong bank detail will each delay a run. Keep one shared change list, sign it off each month, and send it on the same day. Keep the signed payroll report with your accounting records, so your accountant and any auditor can trace pay to the ledger.
Where payroll sits in your costs
Staff cost is often your largest expense. Ask your accountant to show payroll as its own line in the monthly report. That makes it easy to see when a hire or a raise changes your margin, and it gives you the figures to explain at year end or to a bank.
