UAE Payroll & WPS Processing Services
We manage your company's accounting records and payroll, ensuring accurate financial reporting and timely salary processing.
Wage Protection System (WPS) Compliance In The UAE
The Wage Protection System (WPS) is an electronic salary transfer network mandated by the Ministry of Human Resources and Emiratisation (MOHRE) and the Central Bank of the UAE. Under this framework, all mainland businesses and participating free zone entities must transfer employee salaries through approved financial institutions using structured Salary Information Files (.SIF).
Under Ministerial Resolution No. 340 of 2026 (effective 1 June 2026, replacing Ministerial Resolution No. 598 of 2022), employee salaries are due on the 1st of the following Gregorian month. The previous 15-day grace period has been abolished, and employers must process at least 85% of total staff salaries through WPS by the due date to remain compliant. Failing to transfer salaries within this timeline results in automated administrative penalties, restrictions on issuing new work permits, and potential corporate bank account flags. KSB Consultancy handles your monthly WPS workflows to ensure complete compliance and uninterrupted operations.
What Our Payroll Service Covers
We handle the full payroll management cycle, removing administrative burdens while ensuring your business strictly adheres to UAE labor regulations.
1. Monthly Payroll Processing
Gross-to-net salary calculations based on employment contracts and approved attendance records
Accurate processing of fixed allowances, variable overtime, commissions, and discretionary bonuses
Prorated calculations for new hires, resignations, and unpaid leave periods
Generation of detailed, multi-currency employee payslips
2. WPS File Generation & Bank Dispatch
Creation and validation of WPS-compliant Salary Information Files (.SIF)
Direct coordination with corporate banking partners to process salary batches efficiently
Resolution of bank file rejections or processing errors to ensure on-time salary disbursements
Maintenance of digital payment vouchers and transaction receipts for audit readiness
3. Statutory Allocations & Offboarding
Monthly tracking of End-of-Service Benefits (EOSB) and gratuity accruals under UAE Labour Law
Comprehensive final settlement calculations covering unbilled leave, notice periods, and gratuity payouts
Registration and monthly management of GPSSA pension contributions for eligible UAE and GCC national staff
Preparation of payroll summary vouchers for seamless integration into your general accounting ledgers
GPSSA Pension Requirements For UAE Nationals
Employers hiring UAE national workforce members must register eligible employees with the General Pension and Social Security Authority (GPSSA) within 30 days of their start date. The applicable contribution structure depends on when the employee first joined the workforce:
Federal Law No. 7 of 1999 (Joined Before 31 October 2023)
Applies to Emirati employees registered with GPSSA prior to 31 October 2023. Changing employers after this date does not move them to the new regime. Total contribution is 20% of the contribution account salary (5% employee share, 12.5% employer share, and 2.5% government subsidy). The private-sector contribution account salary is capped at AED 50,000 per month.
Federal Decree-Law No. 57 of 2023 (Joined On or After 31 October 2023)
Applies to UAE nationals entering the workforce for the first time on or after 31 October 2023. Total contribution is 26% (11% employee share, 15% employer share, with the government subsidising 2.5% for monthly salaries under AED 20,000, reducing the net employer contribution to 12.5%). The contribution account salary floor is AED 3,000, with monthly caps set at AED 70,000 for private-sector employees and AED 100,000 for government-sector employees.
GCC Nationals
Supported through the Unified Protection Extension System based on their home country's specific social security framework.
Key Operational Risk Drivers In UAE Payroll
| Operational Risk Area | Statutory Requirement | Non-Compliance Consequences |
|---|---|---|
| Late WPS Salary Transfer | Salaries are due on the 1st of the following month with no grace period; minimum 85% payroll threshold required under Ministerial Resolution No. 340 of 2026 | Automated MOHRE fines, ban on new work permits, license holds |
| Incorrect Gratuity Calculation | Accruals must follow Federal Decree-Law No. 33 of 2021, as amended | Employee dispute filings, labor claims, and back-pay adjustments |
| Delayed GPSSA Filing | Registration required within 30 days of employing UAE nationals | Statutory late fees and interest penalties assessed by GPSSA |
| Unlinked Payroll Ledgers | Salary costs must reconcile directly against corporate bank statements | Disallowance of salary tax deductions during Corporate Tax audits |
Seamless Integration With General Ledgers
Outsourced payroll should never operate as an isolated function. KSB Consultancy links your monthly payroll entries directly to your core bookkeeping and general ledger structures. Salary expenses, management allowances, employer pension contributions, and end-of-service accruals are coded to their respective cost centers, maintaining complete transparency for management reporting and future Corporate Tax filings.
Let's Meet The Advisors Managing Your Payroll
KSB Consultancy operates from Sheikh Zayed Road, Dubai, backed by a leadership team bringing over 20 years of combined professional experience across the UAE, GCC, and South Asia. Established in 2025, our corporate services practice delivers dependable payroll, accounting, and compliance management, helping companies stay fully compliant with UAE regulations while freeing up valuable management time.
Frequently asked questions
Does every UAE company have to register for WPS?
All mainland companies registered under MOHRE are legally required to process employee salaries through WPS. While some free zones operate independent payroll guidelines, many are progressively adopting WPS compliance frameworks.
How is End-of-Service Gratuity calculated in the UAE?
Under Article 51(2) of Federal Decree-Law No. 33 of 2021, as amended, full-time foreign employees who complete one or more years of continuous service are entitled to end-of-service gratuity calculated on their basic salary: 21 days of basic salary per year for each of the first five years, and 30 days of basic salary for each subsequent year, capped at two years' total salary. Under Article 51(1), UAE national employees receive end-of-service and pension benefits through GPSSA rather than standard statutory gratuity.
Can KSB Consultancy handle payroll for companies operating across multiple free zones?
Yes. We process centralized payroll across mainland entities and multiple UAE free zones, ensuring each branch meets its specific authority requirements and wage protection standards.
How does outsourced payroll support UAE Corporate Tax compliance?
Salary expenses and benefit payments are deductible business costs under UAE Corporate Tax law. Maintaining clear WPS records and reconciled payroll ledgers ensures these deductions stand up to FTA reviews.