The short answer
UAE private-sector employers must pay salaries through the Wage Protection System, using a bank or exchange house authorised by the Central Bank. End-of-service gratuity is 21 days of basic pay for each of the first five years and 30 days for each year after. We run payroll, WPS files and final settlements every month.
What is WPS and who must use it?
The Wage Protection System is the electronic channel through which private-sector salaries are paid, so the Ministry of Human Resources and Emiratisation can check that every employee is paid on time (UAE Government portal). Salaries go through banks, exchange houses or financial institutions authorised by the Central Bank. We prepare the salary file each month, reconcile it to the payroll and keep the evidence for audits and labour inspections.
When are salaries due?
On the due date in the employment contract; the government portal states that paying wages on time is every employer's responsibility, with the previous month's salary due at the start of the next (u.ae). Late WPS payments are visible to the ministry immediately, which is why the payroll calendar matters as much as the calculation. Our monthly cycle closes inputs a week before pay day, covering joiners, leavers, overtime, leave and deductions.
“Paying wages on the due date is the responsibility of every employer.”
How is end-of-service gratuity calculated?
Under Federal Decree-Law No. 33 of 2021, gratuity is 21 calendar days of basic pay for each of the first five years of service and 30 days for each year after, payable within 14 days of the contract ending (Morgan Lewis summary of the law). An employee with three years' service is therefore owed 63 days of basic pay. Since the 2022 law, resignation no longer reduces the amount, so the liability should be accrued every month.
What HR support do you provide?
Employment contracts and offer letters in line with the 2021 labour law, leave and overtime policies, an employee handbook and the final-settlement workflow when someone leaves. We keep payroll and HR records together so that gratuity accruals, leave balances and WPS files always agree with each other and with the accounts.
Frequently asked questions
Is gratuity based on total salary or basic salary?
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Basic salary, under the 2021 labour law. Allowances are excluded unless the contract says otherwise.
Can you run payroll for free zone companies?
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Yes. WPS applies to private-sector employers; some free zones have their own payroll or registration steps, which we handle as part of the monthly cycle.
Do you handle final settlements?
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Yes: unpaid salary, leave encashment, gratuity and deductions, calculated, documented and paid through WPS.
Sources
- Payment of wages (Wage Protection System) — The official portal of the UAE Government (u.ae). Checked 17 October 2026.
- United Arab Emirates updates federal labour law (Federal Decree-Law No. 33 of 2021) — Morgan Lewis. Checked 17 October 2026.