COUNTRY

UAE

PAYROLL SERVICES IN UAE

With the establishment of the Wage Protection System (WPS) as required by the UAE Ministry of Labour, a comprehensive recorded payroll process has become crucial for all businesses operating in the UAE. 

When companies operate internationally and hire a workforce from different countries, they must carefully plan and monitor the operations to ensure that they are in complete compliance with both the global HR policies and processes and, more crucially, local regulatory requirements. 

Companies that violate the law run the possibility of receiving fines, being barred from applying for fresh work permits, and even having their reputations ruined.

In a tax-free economy, the payroll process is more complicated than it first appears. Payroll is a complicated process due to the various expatriate nationalities and the frequently changing local laws.

BENEFITS OF CHOOSING OUR PAYROLL SERVICES IN UAE

Cost Effective

Legal difficulties are frequently involved in payroll management. This necessitates the expensive hiring of qualified personnel who have a solid grasp of payroll by businesses. 

Additionally, appropriate payroll management systems must be licensed. Last but not least, overhead expenses like office space, laptops, energy, stationery, etc. increase operating costs. All of these services are given by a payroll management business without charging a fee.

Time-saving

Payroll management requires redirecting human resources to a non-profit generating activity in addition to cost advantages. Most companies would benefit if the same resources were applied to their primary business. By refocusing the attention on the primary profit center, hiring an outsourcing payroll company helps accelerate business growth.

Expertise

Payroll service providers have a lot of knowledge because the industry is so specialized. Because of economies of scale, customers can access this talent and experience at fair prices. Additionally, internal payroll specialists rarely have the opportunity to stay current on the most recent laws and regulations.

However, payroll outsourcing UAE firms have separate silos for wage computation, benefits, computerized onboarding, and other tasks, which makes the process more efficient.

Managing payroll successfully takes a lot of coordination and communication between the client and the service provider. In these conditions, data security is vitally important. To stop the leakage of private data, a reputable payroll service company will always have strong data security procedures in place.

Additionally, they will have sufficient defenses against fraud, identity theft, and embezzlement to give their clients a flawless experience.

Accuracy

The UAE does not have an income tax, although employees are still expected to get perks like health insurance. Additionally, Emirati nationals must enroll in social security and pension programs. You may face legal issues if you don’t categorize your employees correctly and make appropriate deductions depending on those classifications.

To guarantee that the compliance process is executed flawlessly, an in-house payroll outsourcing team must possess the appropriate knowledge and expertise. This may need the company to recruit high-grade talent, which comes with accompanying salary costs.

The chance of errors is reduced, however, when payroll processing and management are outsourced to a reputable service provider because the work is done by a group of experts who are highly skilled in their industry.

Avoid Penalty

Professional payroll outsourcing company UAE must be updated on all laws, rules, and adjustments to tax rates. A trustworthy provider of payroll services in the UAE is less likely to commit a major error.

As long as the business delivers the required information and funds on time, many outsourced UAE payroll services will calculate payroll taxes, manage filings and payments, and even absorb the expense of penalties due to inaccurate calculations or late payments.

WHAT ARE THE PAYROLL SERVICES UAE OFFERED BY RELIN CONSULTANTS?

Leave management

The leave balance of the company will be calculated, which could be challenging at times. Our team will also oversee the workflow for employee leave requests and approval.

Employee database management

All the employee information and data will be uploaded into the system accurately. Separate employee files will be created and regular information updates will be performed.

Payroll processing

We will oversee the pay cycle and balance the current paycheck against the one from the prior month. The computation of regular pay, vacation pay, and the complete and whole settlement are all included in the payroll procedure. Before submitting the payroll for processing, our team will make sure that you have reviewed it and given your approval.

Salary disbursal and Statutory compliance support 

The employee file and pay slip will be created using the Wage Protection System (WPS). Your employees will be paid immediately and on time through the WPS. Our group will also oversee any state-provided social insurance or security. After receiving your consent, all paperwork and authorization will be completed on your behalf.

WHAT IS THE PROCESS OF OUTSOURCING MY UAE COMPANY PAYROLL TO RELIN CONSULTANTS?

The steps involved in outsourcing your company’s payroll in the UAE to Relin Consultants are as follows:

Initial Consultation: During the first meeting, a Relin Consultants representative will assess your company’s payroll requirements and determine how their services can best meet your needs.

Setup: Upon completion of the initial consultation, Relin Consultants will establish your company’s payroll system, including the creation of employee records, implementation of payroll schedules, and configuration of any necessary software or online platforms.

Data Gathering: Relin Consultants will collaborate with you to gather all necessary information, such as employee details, salary information, and any other relevant data.

Testing: The payroll system will undergo testing to confirm its correct functioning and accuracy of all calculations.

Launch: Upon successful testing, the payroll system will be launched, and Relin Consultants will commence processing your company’s payroll.

WHY CHOOSE RELIN CONSULTANTS FOR OUTSOURCING PAYROLL SERVICES IN UAE?

We have a team of experts trained to handle payroll calculations and ensure that all payments are accurate and timely. Relin Consultants takes data security very seriously and follows international standards for data security and privacy.

For more information about company formation, refer to UAE business registration.

Contact us at Relin Consultants to learn more about our payroll services in UAE.

FAQs

What is the best payroll provider in the UAE?

Determining the best payroll provider in the UAE depends on your business needs and requirements. It’s recommended to consider factors such as the provider’s level of experience and expertise in the UAE payroll and employment laws, the range of services offered, the level of customer support, and the cost and fees associated with the service.

It is also important to consider your company’s specific needs, such as whether you have employees in multiple locations, the complexity of your payroll system, and the level of integration with other HR and financial systems.

It is recommended to do research and compare several payroll providers before making a final decision. You may also consider seeking recommendations from other business owners or consulting with a professional HR advisor. 

Ultimately, the best payroll provider for your business will be one that can effectively and efficiently handle your payroll needs while also providing exceptional customer support and a user-friendly system.

What is the cost to outsource payroll services UAE?

The cost for payroll services in the UAE can vary depending on the size of your company, the specific services that you require, and the provider you choose. Factors that can affect the cost include the number of employees, the frequency of payroll runs, and the complexity of the payroll calculations.

Some payroll service providers may charge a flat fee for their services, while others may charge a percentage of the total payroll amount. Some providers may also charge additional fees for services such as year-end tax filing, direct deposit, and electronic pay stubs. Some providers may also have different pricing plans based on the number of employees, the complexity of the payroll, and the frequency of the payroll runs.

What is WPS?

WPS stands for the “Wage Protection System,” which is a system implemented by the Central Bank of UAE in 2017 to ensure that employees are paid their salaries and wages on time and in full. The WPS system requires companies in the UAE to electronically transfer employee salaries and wages to their bank accounts through an approved WPS provider.

The WPS system aims to protect the rights of employees by ensuring that they are paid in a timely and accurate manner, and it also helps to reduce disputes between employees and employers.

Employers are required to register with the WPS, and they must submit a salary transfer file to the WPS provider at least 24 hours before the salary payment date. Employers are also required to submit a salary transfer file for all employees, including those on leave or terminated.

What is the end-of-service gratuity?

End-of-service gratuity, also known as severance pay, is a benefit provided to employees in the UAE as per the UAE Labor Law. It is a payment made to an employee upon the termination of their employment, regardless of the reason for termination (voluntary or involuntary).

The gratuity is calculated based on the employee’s length of service and their last basic salary. It is intended to provide financial assistance to the employee during the transition period after leaving their job.

How is the end of service calculated in the UAE?

The UAE’s end-of-service gratuity, also known as severance pay, is calculated based on the employee’s service length and last basic salary. According to the UAE Labor Law, the gratuity calculation formula is as follows:

(21 days’ basic salary for each year of the first 5 years of service + 30 days’ basic salary for each year of service after 5 years) x the number of years of service.

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