Running payroll in the UAE involves more than paying a number each month. There are salary files for banks, end-of-service calculations, leave rules, visa and document renewals and workforce reporting. A good HR and payroll system turns these into routines. Use this checklist when you evaluate one.

1. Employee records and documents

  • One record per person: contract, job title, department, salary structure, bank details and emergency contacts.
  • Passport, visa, Emirates ID and labour card with expiry dates and automatic reminders at 90, 60 and 30 days.
  • Secure document storage with role-based access. Employee data is personal data; see our data protection checklist.

2. Payroll and WPS

  • Salary components: basic, housing, transport and other allowances, overtime and deductions.
  • Monthly payroll runs with approval steps and payslips in English and Arabic.
  • A salary file in the format your bank or exchange house requires for the Wage Protection System, so wages are paid through the system and on time.
  • Correct handling of unpaid leave, loans and advances, and mid-month joiners and leavers.

3. End-of-service gratuity

Gratuity depends on basic salary, length of service and the type of contract and exit. Under the current labour law, the general rule is 21 days of basic salary for each of the first five years and 30 days for each year after that, with caps and conditions. The system should calculate it automatically, show the working and keep it up to date as salary changes, but your HR team should confirm unusual cases with the authority or an adviser.

4. Leave and attendance

  • Leave types: annual, sick, maternity and paternity, compassionate, Hajj, study and unpaid, with balances and approval flows.
  • Public holidays, Ramadan working hours and weekend patterns by company. See our UAE business calendar.
  • Attendance from biometric devices, mobile check-in or timesheets, and overtime calculation.

5. Recruitment and onboarding

Track candidates, interviews and offers, then create a checklist for new joiners: contract, visa, medical, insurance, Emirates ID, equipment and training. A clean onboarding process saves weeks.

6. Workforce rules and reporting

  • Headcount by nationality, department and branch, and Emiratisation tracking where it applies to you. See Emiratisation and MOHRE compliance.
  • Cost of employment: salary, visas, insurance and gratuity provision.
  • Turnover, absence and overtime reports for management.

7. Employee self-service

Staff should be able to view payslips, request leave, update details and download letters from a phone, in English or Arabic. It removes a large share of routine HR questions.

8. Integration with accounting

Payroll journals should post to your accounts automatically, so salary expense, gratuity provision and payments match. See our accounting software checklist.

Choose, test and roll out

  1. Run a real payroll month in a demo with your own salary structure.
  2. Check Arabic payslips and the bank file format.
  3. Import employees and balances carefully.
  4. Run old and new payroll in parallel once.

Browse our HR software or ask for a custom build that fits your structure.

This guide is general information, not legal, tax or financial advice. Rules and thresholds change, so confirm current requirements with the relevant authority or a licensed adviser before you act.

Need software built around how your UAE business really works? Tell us what you need or browse our software and request a demo. We customise, install and support it.