End-to-end payroll management for UAE entities — salary calculations, WPS file generation, end-of-service gratuity provisioning, and MOHRE compliance — delivered with precision and confidentiality.
UAE payroll administration operates within a specific regulatory framework: the Wage Protection System (WPS) mandates electronic salary transfers through approved channels, while UAE Labour Law prescribes entitlements for annual leave, overtime, end-of-service gratuity, and termination benefits. Non-compliance triggers MOHRE penalties and can jeopardise visa processing capability.
Polaris manages the complete payroll cycle — from gross-to-net calculations and WPS file generation through leave management, gratuity provisioning, and final settlement processing. We handle entities of all sizes, from single-employee SPVs to mid-market companies with complex compensation structures including housing allowances, transport allowances, and performance bonuses.
All payroll data is processed under strict confidentiality protocols. Salary information is ringfenced from other accounting functions and accessible only to authorised personnel.
Answers drawn from the published rules of the UAE authorities and regulators. Each answer links to its official source. Last reviewed 25 October 2026.
On the first day of the following month. The u.ae government portal, citing Ministerial Resolution No. (340) of 2026 Concerning the Wage Protection System, states that salaries for the previous month are due on the first day of each Gregorian month and are paid through the WPS via banks, exchange houses or financial institutions authorised by the Central Bank of the UAE. Employers must transfer at least 85 per cent of the total wages due on time, after lawful deductions, to count as compliant. Under the earlier Ministerial Resolution No. 598 of 2022 wages were treated as late only 15 days after the due date and the threshold was 80 per cent. We generate the WPS file so that it clears before the first of the month.
Sources: The United Arab Emirates' Government portal (u.ae) — Payment of salaries/wages; UAE Ministry of Human Resources and Emiratisation — Ministerial Resolution No. 598 of 2022 Regarding the Wages Protection System and Its Amendment (accessed 24 October 2026)
MOHRE's escalation starts within days. According to the u.ae portal's summary of the Wage Protection System rules, every establishment is under electronic monitoring from the day after wages fall due; alerts go out from day two; on day five the issuance of new work permits for the establishment is suspended; on day 11 the administrative fine under Cabinet Resolution No. 21 of 2020 applies, and a repeat within six months moves the company to the third category; on day 16 labour disputes are registered automatically and permits are suspended for larger establishments in listed sectors; from day 21 the measures extend to executive payment orders, collective disputes, precautionary attachment, a travel ban on the person in charge and referral to the Public Prosecution. We treat payroll as a hard deadline.
Source: The United Arab Emirates' Government portal (u.ae) — Payment of salaries/wages (accessed 24 October 2026)
Article 17 of Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations sets maximum normal working hours at eight hours a day or 48 hours a week, with working hours in Ramadan left to the Executive Regulations. Under Article 19 overtime is paid at the wage for normal hours plus an increase of at least 25 per cent, rising to at least 50 per cent for overtime worked between 10 pm and 4 am. Payroll therefore has to capture overtime by time of day, not just the monthly total, to apply the right uplift. We link timesheets to the payroll run so the differential is applied automatically and the hours are evidenced if MOHRE or the employee asks.
Source: UAE Legislation portal (Government of the UAE) — Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations (English text) (accessed 24 October 2026)
Under Article 51 of Federal Decree by Law No. (33) of 2021 a foreign full-time worker who has completed one or more years of continuous service is entitled to gratuity calculated on the basic wage: 21 days' wage for each year of the first five years of service and 30 days' wage for each year beyond that, with the total capped at two years' wage. Because the base is the basic wage, housing, transport and other allowances are excluded from the calculation. The liability builds every month the employee stays, so it belongs in the accounts as a provision rather than appearing as a surprise at exit. We provision gratuity monthly per employee and reconcile it to the contract so the final settlement can be paid without dispute.
Source: UAE Legislation portal (Government of the UAE) — Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations (English text) (accessed 24 October 2026)
Three main ones under Federal Decree by Law No. (33) of 2021. Annual leave: 30 days for each year of service under Article 29, and a worker who leaves before taking it is entitled to be paid for the untaken days. Sick leave: up to 90 consecutive or intermittent days a year after probation under Article 31, paid at full pay for the first 15 days, half pay for the following 30 days and unpaid after that. Maternity leave: 60 days under Article 30, the first 45 at full pay and the following 15 at half pay. Each one changes the WPS amount for the month and the leave accrual in the accounts. We track accruals per employee and apply the half-pay and unpaid bands automatically.
Source: UAE Legislation portal (Government of the UAE) — Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations (English text) (accessed 24 October 2026)
Within 14 days. Article 53 of Federal Decree by Law No. (33) of 2021 requires the employer to pay the worker's wages and all other entitlements within 14 days of the date the contract ends. The settlement brings together the final wage, end-of-service gratuity, payment for untaken annual leave and any other contractual dues, less lawful deductions, and the figures have to be right first time because the deadline leaves little room for correction. Where the visa is being cancelled, the settlement and the cancellation paperwork run in parallel. We prepare the settlement statement, obtain the employee's sign-off and release the payment through the WPS inside the 14-day window.
Source: UAE Legislation portal (Government of the UAE) — Federal Decree by Law No. (33) of 2021 Concerning Regulating Labour Relations (English text) (accessed 24 October 2026)
There is no minimum salary stipulated in the UAE Labour Law, according to the u.ae portal, which adds that wages must be enough to meet employees' basic needs. Wages are paid in UAE dirhams, or in another currency if employer and employee agree it in the contract, in either case through the WPS channels. The absence of a minimum does not relax the WPS rule that at least 85 per cent of total wages due must be transferred on time. Some workers sit outside the WPS: those with a wage complaint before the judiciary, those on documented unpaid leave, workers on mission permits of three months or less, and foreign-branch employees paid abroad at the employer's request with the worker's approval. We configure each contract currency and WPS mapping accordingly.
Source: The United Arab Emirates' Government portal (u.ae) — Payment of salaries/wages (accessed 24 October 2026)
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