Processing payroll in the UAE requires strict adherence to regulatory frameworks established under Federal Law No. 8 of 1980 (UAE Labor Law) and Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations. The UAE Ministry of Human Resources and Emiratisation (MoHRE) oversees implementation and enforcement across all private sector companies, whether operations occur in free zones or mainland jurisdictions.

This step-by-step guide explains how the payroll system in the UAE works and outlines every phase required for full compliance. You will learn how to collect and verify employee data, structure salaries, calculate gross and net pay, apply deductions, compute gratuity and pension contributions, prepare the Salary Information File (SIF) for the Wage Protection System (WPS), submit payroll through the bank, issue payslips, and maintain compliance documentation.