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UAE payroll outsourcing service.

Outsource the management of your UAE company’s payroll to our team of experts. We specialise in navigating the complexities of payroll procedures, guaranteeing full compliance with local regulations while efficiently handling these labour-intensive responsibilities on your behalf.

UAE payroll outsourcing service

Leave your payroll to
our in-country experts.

Integrated tax compliance

In addition to handling payroll calculations and processing, we confidently take care of filing compliance reports for you.

Robust reporting

Gain access to comprehensive and detailed reports that empower you to maintain precise control over your HR management and expenses.

Convenient online portal

Manage and monitor your payroll effortlessly through our user-friendly self-service platform, eliminating the need for spreadsheets or mailing documents.

Complete payroll services

Flexible and scalable payroll outsourcing solutions.

Experience seamless payroll management with our comprehensive services that encompass every facet of the payroll process. Our solutions are designed to be flexible and can be customised to align perfectly with your company’s distinct needs and requirements

  • Initial payroll setup

    We will import your employee data and set up the payroll system to meet your needs, regardless of what compensation and benefits policy your company has.

    One-off

  • Monthly payroll processing*

    We will notify you to confirm essential employee details, such as salary, leaves and more. We will then take care of your payroll calculations, statutory contributions, filings, salary payments and other paperwork for you. All you need to do is to review and approve the documents. Detailed reports such as payslips and other documents will be available online on the service platform.

    Monthly

  • Year-end services

    We will prepare and submit all necessary year-end returns, filings and tax forms for each employee.

    Annually

  • Client self-service portal

    Like our other services, our outsourced payroll service is also managed online through our platform, which makes it more convenient for you. There will be no spreadsheets, documents, emails or phone calls required. You can access the payroll online at any time through our Emplyee self-service (ESS) and Manager self-service (MSS) platform and manage:

    • Employee data
    • Employee attendance
    • Requesting and managing leave
    • Claiming expenses and more

    Monthly

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*Our monthly regular processing fees follow a tiered structure, where the average fees per employee will decrease as the total number of employees increase. The total monthly processing fees will be the sum of the costs for each tier. Your actual monthly fees will then vary based on the fluctuations in your headcount.

An irregular processing fee will be applied as required for any employee payment processing, which does not coincide with monthly regular payroll processing (off-cycle processing), eg religious festivities bonus, performance bonus pay-outs, incentives, etc.

Payroll implementation process

Simple steps to implement your payroll in the UAE.

1. Initial assessment

First, we will identify your payroll needs, select suitable services and prepare the initiation of the selected services. We will also evaluate ways to improve the overall payroll process.

2. Service blueprint

Once the services are chosen, we will produce a payroll blueprint document which sets out the aspects of the payroll administration, such as initial data migration, ongoing processing, calculation details, reporting requirements and employee services and payroll calendar. This blueprint will act as a guideline for both parties.

3. Testing phase

During the testing phase, we will customise the payroll system to satisfy your needs, set up the system, transfer the employee data and integrate transaction data.

4. Parallel run & evaluation

Next, we will analyse the results with the previous payroll calculations. We then will evaluate the calculation differences and switch to our payroll system for the agreed contractual time.

5. Production

Finally, your payroll system will be set up and ready to launch.

Looking to change your provider?

Acclime makes switching your payroll provider easy.

Our team will handle every detail, from the initial notification to your current provider to gathering and securely transferring all your employee data. This ensures a seamless transition, allowing you to keep your focus on core business operations.

Request a custom quote

Why Acclime?

Your premier partner for complete and efficient payroll in the UAE.

Reduced operating costs

Save operating expenses with our cost-effective payroll technology. You can combine services like HR, accounting, and taxation to reduce your spending even further.

Complete payroll solution

We offer comprehensive services tailored to your company size and needs, ensuring accurate and timely staff payments, from payroll and benefits calculation to tax processing, payments, reporting, and compliance filings.

Effective communication & reporting

Simplify your work and stay informed about your payroll through our efficient services, consistent reporting, and a single point of contact for communication.

FAQ

Common questions.

What are the payroll compliance obligations for companies employing staff in the UAE?

UAE employers carry a defined set of payroll obligations for all staff under Federal Decree-Law No. 33 of 2021. Key requirements include:

  • WPS salary transfers through an approved UAE bank or exchange house
  • End-of-service gratuity accrual at 21 or 30 calendar days of basic salary per year depending on tenure
  • Mandatory health insurance under the Dubai Health Authority scheme in Dubai and the Department of Health framework in Abu Dhabi
  • Employment contracts registered with MOHRE within 14 days of the start date

Emirati nationals in the private sector are subject to a statutory minimum salary of AED 6,000 per month. No income tax or social insurance is deducted from expatriate salaries in the UAE, which simplifies gross-to-net calculations compared to most other markets.

Which UAE employers are required to comply with the Wages Protection System?

All private sector employers holding MOHRE-registered work permits are legally required to comply with the Wages Protection System (WPS), a mandatory electronic salary transfer framework administered by MOHRE. Salaries must be paid through approved banks or exchange houses by submitting a Salary Information File (SIF) each month. Delays beyond 15 days trigger automatic fines of AED 5,000 per affected employee, capped at AED 50,000 per incident. From day 17, new work permit processing is suspended automatically.

Free zone companies are subject to the same rules if their employees hold MOHRE work permits. Only employers operating exclusively under DIFC or ADGM labour frameworks are exempt, though both jurisdictions impose equivalent salary protection requirements.

How is end-of-service gratuity calculated for employees in the UAE?

End-of-service gratuity is a statutory payment due to employees who complete at least one year of continuous service. Under Article 51 of Federal Decree-Law No. 33 of 2021, the calculation is 21 calendar days of basic salary per year for the first five years and 30 calendar days per year thereafter, capped at two years’ basic salary. Allowances for housing and transport are excluded from the calculation.

Employers must settle all gratuity within 14 days of the employment end date. UAE nationals are covered by pension schemes rather than this formula. DIFC and ADGM employers follow funded savings schemes in place of traditional gratuity, operating under each jurisdiction’s independent employment framework. For a full overview of termination obligations and gratuity provisions under UAE labour law, see the employment and labour law guide.

Does payroll processing differ between UAE mainland and free zone companies?

The core mechanics are similar but two variables differ by jurisdiction: WPS compliance obligations and end-of-service benefit structure. Mainland companies and most free zones including DMCC and JAFZA fall under MOHRE jurisdiction and must process salaries through WPS with a monthly SIF submission.

DIFC and ADGM are the main exceptions. Both operate independent employment frameworks with their own contract requirements and end-of-service benefit structures. DIFC mandates the DEWS funded savings plan in place of traditional gratuity and does not require MOHRE WPS compliance for employees holding DIFC-issued permits. Companies with staff across both mainland and free zone entities must manage separate compliance tracks, which adds complexity to consolidated payroll reporting.

How does payroll work for employees in UAE free zones?

Free zone employees in the UAE are subject to payroll rules that vary depending on whether their employer holds MOHRE or free zone authority-issued permits. Employees on MOHRE work permits, including those working for free zone companies that have opted into the mainland labour framework, must be paid through WPS and are entitled to gratuity under Federal Decree-Law No. 33 of 2021.

DIFC and ADGM operate fully independent employment frameworks. DIFC employees are covered by the DIFC Employment Law and must be enrolled in the DEWS funded savings plan, which replaces traditional gratuity with monthly contributions to a third-party savings scheme. ADGM operates a comparable structure under its own employment regulations. Neither DIFC nor ADGM employers are subject to MOHRE WPS requirements for employees holding permits issued by those authorities. Companies with staff across mainland and free zone entities must maintain separate payroll and compliance tracks for each jurisdiction.

What are the penalties for payroll non-compliance in the UAE?

MOHRE enforces payroll compliance through an automated penalty structure with no grace period beyond 15 days. The penalty sequence is triggered by SIF errors or late submissions and escalates as follows:

  • Fines of AED 5,000 per affected employee, capped at AED 50,000 per incident, from day 16
  • Automatic suspension of new work permit processing from day 17
  • Referral to Public Prosecution at day 30 for companies with 50 or more employees
  • A company downgrade under Cabinet Resolution No. 21 of 2020 for repeat violations within six months, making future visa and permit processing more difficult and costly

MOHRE monitors payroll submissions in real time, meaning SIF errors and late submissions are flagged instantly rather than picked up in periodic inspections. Penalties apply across all establishments under the same ownership, so a compliance failure in one entity can block hiring across an entire group.

Ready to get started?

Manage your team’s payroll with a complete payroll solution tailored to your specific requirements.

Rajiv Kumar Singh
Is Acclime right for you?

Schedule a free 30-minute discovery call to discuss setting up and operating your company in the UAE.

Zia Murad, Deputy Managing Director