UAE Payroll Tax & Social Security Compliance Services
Accurate Payroll. Seamless Compliance. Trusted UAE Experts.
Payroll Compliance & Social Security Consultants Dubai
Managing Corporate operations in the United Arab Emirates (UAE) requires strict adherence to local labor laws, financial regulations and employment frameworks. While the UAE does not levy a personal income tax on employment income, it is crucial for employers to understand their legal responsibilities when dealing with wages, statutory benefits and state pensions for employees.
Full compliance with federal decrees protects organizations from severe administrative penalties, operational restrictions, and litigation.
At Moores Rowland, we provide structured legal and financial advice to help your business maintain seamless compliance across mainland and free zone jurisdictions.
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If you need help with payroll tax & social security compliance in UAE, WPS compliance, GPSSA contributions, end of service gratuity, UAE payroll services, or full labour law support, contact Moores Rowland today.
What Is Payroll Tax in the UAE?
The UAE does not impose income tax on employees. There is no deduction from salaries, no personal tax filing and no income tax registration for UAE nationals or expatriates in all seven emirates.
There is still payroll compliance. For UAE national employees, the employer and employee must make monthly contributions to the General Pension and Social Security Authority (GPSSA) — or the Abu Dhabi Pension Fund (ADPF) for Abu Dhabi-based employees. These are statutory social security payments and there are consequences if you miss them.
Expatriate employees are exempt from social security contributions, but employers are required to pay an end-of-service gratuity upon termination of employment and must pay all salaries through the Wage Protection System (WPS) on a monthly basis.
Why Payroll and Social Security Compliance Matters for UAE Businesses
The UAE has a business-friendly set up and no personal income tax on salaries for employees. There is no standard payroll tax like in many other countries. But under UAE labour law and related regulations, employers still have key duties to carry out.
These include:
- Pay salaries on time through the Wage Protection System (WPS)
- Social Security (GPSSA) contributions for UAE and GCC national employees
- Calculation and payment of gratuity at the end of service
- Under the guidance of the Ministry of Human Resources and Emiratisation (MOHRE)
Proper compliance keeps you legal, keeps good employees, and ensures your operations run smoothly.
Social Security Contributions in UAE (GPSSA Compliance)
Social security basically applies only to UAE nationals and GCC nationals. Expatriate workers (the vast majority in the private sector) do not contribute to GPSSA.
Key rules (based on official GPSSA regulations):
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Contributions go to the General Pension and Social Security Authority (GPSSA) governed under Federal Law No. 7 of 1999 and updated by Federal Decree-Law No. 57 of 2023.
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For most private sector UAE nationals (as per rules before 2023): Total of about 20% of pensionable salary, employee 5%, employer 12.5% (private sector), government 2.5%.
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The new rules under Federal Decree-Law No. 57 of 2023 (accruing only for new joiners as of October 2023): The rates can be as high as 26% total, employee 11%, employer 15%, Government: 2.5% support for salaries below AED 20,000.
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Employers need to register employees within one month of joining and pay monthly contributions on time (usually by the 15th of the subsequent month).
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We take care of the registration, the accurate monthly calculations, submissions via official portals and keep you updated with the latest changes.
Wage Protection System (WPS) Compliance in UAE
All mainland private sector employers are now required to pay wages through the Wages Protection System (WPS). This MOHRE system guarantees payments in a timely manner and with full transparency.
Basic Criteria:
Payment of the previous month’s salaries shall be made no later than the first Gregorian date of the following month (pursuant to the Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System).
- Transactions are only through registered banks or exchange houses.
- Provide accurate Salary Information Files (SIFs) and maintain high on-time payment rates (at least 85% as per current rules).
- If a company does not pay salaries on time in the UAE, MOHRE starts taking action very quickly under the new WPS rules.
- Day 2 Salary Delay — MOHRE’s system shows the company as “late” and warning alerts may start.
- Day 5 Work Permit Suspension — New work permit application will not be issued if the company still failed to pay employee’s salaries.
- Day 11 Company Downgrade (Repeat Cases) — MOHRE can downgrade the company to Category 3 and issue an administrative fine if the company has repeated delays within six months.
- Day 16 Labour Disputes — MOHRE may automatically register labour complaints for employees.
- Day 21 Public Prosecution (Large Companies) — Companies with 50 or more workers may be referred to the Public Prosecutor for serious non-payment.
When the company is downgraded, the employee may be granted the right to transfer to another company freely. Also, the company will have to pay higher fees and face more inspections.
Our team sets up WPS, prepares correct files, monitors deadlines, and resolves any issues quickly.
End of Service Gratuity (EOSB) in UAE
Everyone who has worked for at least one year is eligible for end-of-service gratuity paid by the employer (not through GPSSA for expats).
Under Federal Decree-Law No. 33 of 2021 (UAE Labour Law):
- It is calculated on the basis of the employee’s basic salary only.
- This is 21 days’ basic salary for each year of the first five years of service.
- This increases to 30 days for each year of service after the fifth year.
- Must be paid within 14 days of contract termination along with any other final dues.
- In most cases, this is capped at the amount equivalent to two years’ basic salary.
We do the calculations accurately and also help you provision the gratuity in your accounts and make sure that gratuity is paid out on time at the time of employees’ exit.
Payroll Deductions in Dubai and UAE
Payroll deductions in Dubai and all across the UAE are a limited and simple process.
- Salary is not subject to income tax deduction.
- Mandatory deductions are mostly GPSSA contributions for UAE and GCC nationals.
- Voluntary deductions may include health insurance, staff loans or other benefits specified in the employment contract.
We ensure all of these deductions are correct, documented and compliant with labour law including overtime, leave and other elements of your monthly payroll.
Our Complete UAE Payroll Services in Dubai, UAE
Our Payroll Tax & Social Security Compliance in UAE service is part of a broader range of support that includes:
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Accurate salary calculations and deductions
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Handling payroll deductions in Dubai and across emirates
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UAE Labour Law compliance (contracts, leaves, overtime, working hours)
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GPSSA registration and monthly contributions
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WPS compliance and salary transfers
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End-of-service gratuity management
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Emiratisation support and Nafis programme guidance
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Compliance for mainland, free zone (DIFC, ADGM), and offshore companies
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Regular audits, record-keeping, and updates on regulatory changes
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Training for your internal HR and finance teams
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We tailor every solution to your business size and sector so you receive exactly the help you need.
Benefits of Working with Moores Rowland for Payroll Compliance in UAE
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Flexible payroll outsourcing: We process your payroll monthly either fully or partially, depending on your needs.
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Professional Compliance Advice: Our team delivers the most accurate advice in line with the most current MOHRE, GPSSA and Federal UAE laws.
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Lower payroll risks: We ensure your payroll is fully compliant, so your company doesn’t have to risk the fines, work-permit problems, and employee disputes.
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Plain and straight forward reporting: All reports and notifications are provided in simple language so you can always know what is going on.
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UAE local expertise: Our agents are well trained and skilled in serving various businesses in Dubai, Abu Dhabi and across the UAE.
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Together, these services ensure you receive reliable, compliant, and stress-free payroll management every month.
Frequently Asked Questions (FAQs)
Q1. Is there payroll tax or income tax in the UAE?
There is no personal income tax, and there are no payroll tax obligations on employees in the UAE. The primary payroll responsibilities for UAE employers are WPS salary and GPSSA pension contributions for UAE and GCC nationals.
Q2. Who pays social security contributions in the UAE?
Social security only applies to UAE and GCC nationals. Employers and employees make contributions in accordance with the GPSSA regulations under Federal Law No. 7 of 1999 and Decree-Law No. 57 of 2023.
Q3. What happens if WPS salary payments are late?
When WPS salaries are not paid on time, the company will have the penalty of work-permit ban, fines, system block and other MOHRE penalties. Our payroll team helps to avoid all the problems by making timely and correct processing.
Q4. How is end-of-service gratuity calculated in the UAE?
End-of-service gratuity is calculated according to Federal Decree-Law No. 33 of 2021. Employees get 21 days of basic salary for each of the first five years, and 30 days of basic salary for each year after that.
Q5. Do you support payroll for free zone companies?
Yes, we support all free zone companies in DIFC, ADGM and all UAE free zones, and also support compliance with WPS, GPSSA, and local payroll regulations where required.
Q6. What details need to be reported in an SIF (Salary Information File)?
The Salary Information File (SIF) is a highly detailed, standard electronic report which must be submitted to the Central Bank of the UAE and MOHRE. The SIF must include the following details:
- Name of the employer and MOHRE establishment card no.
- Employee full name, Emirates ID no. and Labor Card no.
- Salary details: Salary card number (or IBAN number), and the details of basic salary, variable portions (allowances), deductions and final net salary.