Background
Payroll Management

WPS-Compliant Payroll On Time, Every Time

Arab First manages your UAE payroll end-to-end — accurate calculations, WPS processing, payslips, gratuity accrual, and leave management. Keep your team paid and your compliance intact.

Mandatory Compliance

What is WPS?

The Wages Protection System (WPS) is a mandatory UAE government payroll system administered by MOHRE. All private sector employers must process employee salaries electronically through approved WPS agents (banks or exchange houses) within the specified payment period.

WPS ensures employees receive their contracted salary on time, every month. Arab First processes your payroll through WPS on your behalf, managing the bank files, confirmations, and MOHRE reporting.

WPS Compliance Penalties

  • Late salary payment
    Fine + temporary ban on new visa applications
  • Non-WPS payment
    Considered non-compliance — MOHRE inspection risk
  • Persistent violations
    Company blacklisting and operational restrictions
  • Understated salary
    Invalid if WPS shows less than contracted amount
Pay Components

Everything We Calculate for You

Basic Salary

Fixed base salary as stated in the employment contract

Housing Allowance

Typically 25–30% of basic salary; tax-free

Transport Allowance

AED 500–1,500 per month for commuting expenses

Gratuity (EOSB)

End of Service Benefit — 21 days/year (first 5 years), 30 days/year thereafter

Annual Leave Pay

30 calendar days/year (after 1 year employment)

Overtime Pay

125% of hourly rate (150% for public holidays/nights)

Monthly Cycle

Your Monthly Payroll Process

Day 1–5
01

Data Collection

Gather attendance, leave, overtime, and new joiner/leaver data

Day 6–8
02

Payroll Calculation

Calculate gross pay, deductions, gratuity accrual, and net pay

Day 9–10
03

Client Review

Payroll report sent for client approval before processing

Day 10–15
04

WPS Processing

Salaries transferred via WPS to employee bank accounts

Day 15–20
05

Payslips & Reports

Digital payslips issued, management reports delivered

FAQ

Payroll FAQs

What is WPS (Wages Protection System)?

The Wages Protection System (WPS) is a UAE government system that ensures employees are paid their salaries electronically on time. All private sector companies in the UAE (mainland and most freezones) must process payroll through WPS. Failure to comply results in fines and labour ban implications.

What is the penalty for late WPS payment?

If salaries are not processed through WPS within the specified period (typically within 10 days of the due date), MOHRE can impose fines and temporary bans on new visa issuance. Persistent violations can result in company blacklisting.

How is gratuity (End of Service Benefit) calculated?

End of Service Benefit is calculated as: 21 days basic salary per year for the first 5 years of service, and 30 days basic salary per year for each subsequent year. Arab First calculates and accrues gratuity monthly as part of our payroll service.

Can Arab First manage payroll for a team of different nationalities?

Yes. We manage multi-nationality payroll across all UAE-regulated employment visa categories. Each employee is processed according to their contract terms and UAE Labour Law requirements regardless of nationality.

Do you handle visa-linked payroll (linked visa workers)?

Yes. For employees sponsored directly by your company (visa under your company), we manage the full payroll cycle including WPS compliance, Emirates ID linkage, and GFDRFA reporting.

Can you integrate with our HR system?

Yes. We integrate with common HR and ERP platforms (SAP, Oracle, Zoho People, BambooHR) or operate via a simple Excel-based input if you prefer. We adapt to your existing processes.

Free Consultation

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