UAE payroll is more complex than it appears. Mainland employers must pay salaries through the Wage Protection System (WPS) — an electronic salary transfer system that the Ministry of Human Resources uses to monitor compliance. End-of-service gratuity must be accrued monthly (21 days of basic salary per year for the first five years, 30 days thereafter). If your business employs UAE nationals, Emiratisation quotas and associated costs apply. Free zone payroll rules may differ by zone. Payroll errors — particularly in gratuity calculations — are frequently discovered only at resignation, when the liability has accumulated for years.
Watch out: Failing to pay salaries through WPS for mainland employees can result in work permit bans and licence suspension — not just financial penalties.
See also: Wage Protection System (WPS), Expense Claim, Compliance
