Payroll refers to the system of handling the wages and compensations of all the employees of a company. It is one of the most important components of the Human Resources (HR) department, and as such, forms an integral part of every company. When it comes to payroll, consistency, and accuracy are pivotal facets. Employees expect to get their compensation in a timely manner every disbursement cycle; otherwise, employee dissatisfaction ensues.
The United Arab Emirates is an attractive market for businesses and is flocked by people from all over the world every year. With a population of over 9 million, the country handles a large employed workforce. Consequently, the payroll regulations in the UAE are systematic and intricate. Moreover, these are amended often, without much or any notice to employers. This fact is significant for businesses since not complying with regulations, for reasons of commission or omission, can add undue costs to a company’s payroll operations.
In the UAE, there is something called the Wages Protection System (WPS). It is an electronic salary transfer system, introduced in 2009, that enables institutions to pay employee wages via banks and other financial institutions authorized and approved by the Central Bank. WPS was developed by the UAE Central Bank and the Ministry of Labour to automate timely and full payment of wages through a database. The WPS covers all institutions registered with the Ministry across all sectors and industries. This is significant for businesses since companies failing to adhere to this process shall face punishments and fines, and shall not be able to procure work permits.
What Are the Benefits of Payroll Processing Services?
Security and Confidentiality
A proper payroll function mitigates the risks of leakage of sensitive information, employees’ identities, and potential misuse of company funds.
Compliance and Regulation
Your company can benefit through a payroll processing service by staying on top on any issue pertaining to the UAE labor law. Since compliance with any developments in the same is also called for, that is also taken care of via a payroll service.
Building and having a dedicated team for payroll processing in your company has several costs and obligations. Outsourcing this function is a small or medium enterprise goes a long way in cost saving.
What Payroll Processing Services Do We Provide?
Commitbiz can assist you with the following payroll processing services in the UAE:
- Setting up and maintenance of the Wage Protection System (WPS)
- Processing of salaries, including fixed salary, incentives, bonuses, allowances, etc.
- Processing of expense claims reimbursements
- Generation of payslips, bank transfer letters, and salary certificates
- Maintenance of payroll information related to employees
- Leave management for holidays, paid leaves, absences, etc.
- Drafting of offer letters
- Calculation of statutory gratuity payments as per the UAE labor law
- Calculation of full & final (F&F) settlement in case of termination or resignation of an employee
- Maintenance of payroll information (working days, leaves, holidays, etc.) of each employee in a database
Outsourcing Payroll Services
The payroll process in a company in the UAE can be quite complex, with a lot to keep track of, like the WPS payroll, deductions, monthly wage calculation, holiday records, paid leaves, overtime, etc. However, a payroll system is essential with the financial facets associated with it and the local regulations governing it. Thus, outsourcing one’s payroll processing system in the UAE makes sense – to set up an organized and robust payroll.
Why Outsource Payroll Services in Dubai, UAE?
- Forming a dedicated team for payroll processing from scratch in your company has several costs and obligations – that of fixed monthly salaries in the department, visa, medical insurance, leaves & holidays, training costs, Emirates ID and labor contract fee, etc. Outsourcing this function is a small or medium enterprise makes sense from a budgetary perspective.
- When you outsource your payroll function to an expert third party in the UAE, they can advise you on the nitty-gritty of the corporate payroll practices prevalent in the place, and also keep you updated with any revisions in the UAE labor law.
- You save costs on payroll software and system maintenance of the same.
- Scaling of your payroll system as per the size of your company is taken care of by the outsourced payroll vendor.
Our payroll processing services aim at efficient employee payroll management so as to reduce administrative burden and curtail extraneous financial costs. This helps you streamline your business growth and improve your company’s performance by concentrating on core risk areas in business with increased flexibility to respond to requirements.
We at Commitbiz Management Consultants have our team of experts to help entrepreneurs set up their payroll function in Dubai and the rest of the UAE. Should you decide to open a business here, do contact us, we’d be glad to help.
What is a payroll system? Why does a company need it?
Payroll is the system of handling the wages and compensations of all the employees of a company. It is required by a company to manage the periodic compensation disbursement, leave management and record keeping of its employees.
What is WPS in Dubai?
The Wages Protection System (WPS) is an electronic salary transfer system, introduced in 2009, that enables institutions to pay employee wages via banks and other financial institutions authorized and approved by the UAE Central Bank. It covers all institutions registered with the Ministry across all sectors and industries.
Is it advisable to outsource one’s payroll management system to a third-party firm in Dubai?
For a small or medium sized company, handling one’s payroll can be quite a challenge because of the costs and regulations associated with it in Dubai. For expertise and convenience, it is recommended that you consult a business services firm for your payroll services in Dubai.