FAQs on the payroll process in Dubai


Every business with a number of employees needs a payroll system. In the UAE tax environment is favourable for setting up a business. But the payroll regulation of the land gives businesses a tough time. When companies fail to adhere to the payroll regulations of the country, they have to face severe consequences and it often happens because the regulations are amended very frequently.

Thus, managing the payroll gets arduous for the businesses very often. However, getting professional services saves many of them from difficult situations. If you are one of the business owners there and haven’t already gotten in touch with professionals for payroll management, now is the right time. You can get in touch with one of the best Bookkeeping and accounting firms in Dubai which offers payroll management and save you from severe consequences.

This article aims to answer frequent queries on the payroll system of Dubai.

Top five frequently asked questions on the payroll in Dubai

Payroll is a confusing concept for many people. If you are starting your business but are yet to understand how it works and what our choices are, you need to read the answers to the following questions:

What is a payroll system?

It is a system with which businesses handle wages and compensations for their employees. Every company needs a payroll system in place to manage the reimbursements, individual leaves, as well as record keeping.

For payroll management, you can either use manual methods or software. With manual methods, the human effort requires lost of time and is prone to human error.

Why does a company need it?

Every company needs a payroll management system. But why is it so? Every company has to manage costs as well as the regulations that it is subject to. Payroll systems enable companies to manage the salaries and gratuities for the employee effectively.

What is Dubai’s WPS system?

In Dubai, there is an online salary transfer program called the Wages Protection System (WPS). This system enables organizations to transfer salaries to their employees electronically. It was introduced in the year 2002 and has since been an obligation for businesses to use. This system is applicable to all organizations registered with the government across all sectors.

Is it beneficial to outsource Payroll services in Dubai?

Managing the payroll on your own can be quite challenging for you and hence your organization. Secondly, there are regulations that oblige your organization to follow the payroll system of the country. The payroll regulations see amendments very frequently. All of this makes it a need for companies, whether small or medium-sized, to outsource payroll services from reputable accounting firms.

As a business owner, you must also hire the services of one of the reputable Bookkeeping and accounting firms in Dubai without any hesitation. When you hire professional services for payroll management, you can shift your focus on other more important tasks at hand and trust them to manage the salaries and leave reimbursements for you.

What are the benefits of outsourcing payroll services in Dubai?

You can rely on in the professional accountants and bookkeeping experts to manage from beginning till the end, the wages, and compensations in normal as well as exceptional cases. All you have to do is to lay a set of rules or define a framework which the payroll experts will work against. The benefits are as follows:

  1. Helps with budgeting when it comes to managing the travel, visa, medical insurance, fixed salaries and training costs.
  2. Assists in following the payroll regulations keeping in view the nitty-gritty of the process as well as the regulations.
  3. Saves you maintenance and software costs
  4. Allows you to trust the outsourced expert for scaling of your payroll system according to your business requirements

Is your company in need of a payroll service?

Payroll services are one of the key requirements for running a business in the UAE. These allow you to collect and manage your employees’ income tax information along with the addresses and social security numbers. They also keep track of the number of hours that they work and the salary and incentives that result from their effort and dedication.

You can easily outsource professionals for payroll services in the hustling markets of the UAE. Get in touch with one of the best accounting firms and rely on them to not only form and set the record straight but maintain them in the longer run.

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