Rated one of the best Payroll outsourcing service providers in UAE

• Establish your business in the UAE cost-efficiently
• Keep your employees happy with regular, on-time payroll
• Navigate labor laws in the UAE seamlessly
• Reputable outsourced payroll provider

Dubai, A Tax-Friendly Hub

Thanks to its tax-friendly policies and allowances, Dubai is an attractive destination for businesses seeking international expansion. The government and tax authorities don’t mandate corporate income tax on companies. So, unlike in most other countries where a large chunk of a business’s gross profit goes into meeting the tax requirements of the jurisdiction, you can establish your presence and grow sustainably in Dubai by allocating more money towards quality assurance.

Make It Big In The UAE Market

As it might already be evident, the exemption from paying income taxes gives businesses an invaluable opportunity to grow their revenue and invest their company funds wisely. However, not all companies can make the most of this offering and stand out from their competition in the market.

Here’s what attracts success in the UAE market:

• The exceptional quality of the goods and services
• A robust understanding of local needs and tailored business growth strategies
• A flexible business model open to changing and catering to the changing consumer demands
• Customer-friendly policies and after-sales services
• A thriving and happy workforce

Edge’s one-stop payroll outsourcing services in Dubai can help you navigate the path toward success in the UAE by handling your payroll process.

Outsource Your Payroll Process To Edge

Managing payroll services efficiently is of utmost importance to build employee trust. When employees are paid accurately and on time, they can focus better at work and deliver better results for the company. On the contrary, payroll errors can cause frustration among employees and reduce their work quality. Outsourcing payroll services to reliable payroll outsourcing companies can keep your employees happy. Payroll service providers are experienced in handling payroll records and disbursements. If your organization is looking for an outsourced payroll solutions dubai service provider, then Edge Global Outsourcing is here to help.

At Edge, our payroll management services strive to make payroll processing for your company as hassle-free as possible. This gives you the room to perfect your core business functions while we take care of your payroll services.

We are one of the most trusted and experienced payroll outsourcing companies in Dubai when it comes to handling variable volumes of payroll operations. Outsourcing payroll allows you to upscale or downsize your payroll services according to your business needs. Here are all the advantages you can enjoy from outsourcing your payroll to us:

• Detailed reporting on payroll disbursement and employee records (net salary, leave, etc.). We also provide electronic payroll records for the same.
• Unmatched data security with our electronic salary transfer system
• Cost savings and employee payroll set-up
• Accessory services include drafting employment contracts for new recruitments and setting up bank accounts for employees and their Emirates ID cards. In other words, we extend our services beyond mere payroll responsibilities.
• Our qualified and experienced professionals also help with the process of termination and severance.

A Guide To Our Expert Global Payroll Processing

We have a unique payroll outsourcing model to handle your payroll services. The core of our offerings is state-of-the-art payroll software that works seamlessly with your employee data (handling contract details, personal information, insurance, job position, used work leave, and so on). In other words, it gets time-consuming tasks done in an instant.

In outsourcing payroll with us, your data is first used for payroll calculations followed by the net salary after deducting the contributions, such as insurance, taxes, leave, etc. This amount is then transferred to the employees’ registered bank accounts.

However, things don’t end there. The final step in processing payroll is sending payslips to the employees based on the payroll frequency (bi-weekly or monthly cycle) as well as detailed reports to the company management team.

When it comes to ensuring data security, outsourcing payroll services can sometimes be risky. At Edge, we respect your privacy and do not share any information about your business with a third-party company. To make your sensitive data even safer, we store them on our end-to-end encrypted servers. So, beyond payroll compliance and avoiding payroll errors, we also keep you safe with our payroll management services.

UAE Labor Law And Employer Regulations

In the UAE, there is no formal security system in place for expatriate workers. However, the government has certain policies that safeguard employee rights and benefits. These include:

• End of Service Benefits (EOSB) or Severance Pay at the time of termination.
• Medical Insurance for all workers (both resident and non-resident).
• Wages Protection System (WPS) – The Wage Protection System in Dubai UAE ensures employees receive their salaries on time and as per the terms finalized in the employment contract.
• Retirement Pension Plans
• Mandatory Emirates ID Card and Residency Visa for expatriate workers residing and working in the UAE
• Payroll outsourcing service providers who offer additional payroll services like drafting employment contracts, need to be aware of these employer regulations.

The Standard Payroll Cycle

Companies in Dubai and the UAE opt for a monthly payroll cycle, with salaries disbursed mostly on the 25th of every month. Companies can also choose a bi-weekly payroll arrangement depending on convenience and internal policies. Payroll management services availed through outsourcing payroll can help companies distribute salaries in a timely manner.

Minimum Wage Requirements

There is no federal minimum wage in the UAE. Individual emirates can set their minimum wage standards. For example, Dubai has a minimum wage requirement of AED 3,500 per month. On the other hand, some emirates, such as Abu Dhabi, do not have a specified minimum wage, while Abu Dhabi recommends a minimum salary of AED 1,200 per month. While setting up payroll services, payroll outsourcing companies should keep these values in mind.

Work Leave And Overtime Compensation

• Annual Leave – Employees who have worked for more than a year in a company are entitled to a minimum of 30 days of paid annual leave per year. In Dubai, annual leave entitlement increases by another 10 days per year after ten years of service. Some companies offer more allowances as well.
• Sick Leave – Employees are also entitled to paid sick leave after completing their probationary period. The pay rate and duration of leave can vary based on company policies. Most companies ask for a medical certificate for extended sick leave.
• Parental Leave – Female employees are entitled to 45 days of paid maternity leave in Dubai (after completing one year of service in a company). In Abu Dhabi, they are offered 60 days of maternity leave with full wage for the first 45 days and half for the next 15 days.

Some companies also offer paternity benefits and leave, but the pay rates and duration vary. Payroll services by payroll outsourcing companies offer internal guidelines for the same.

Overtime Compensation In The UAE

The general rate of overtime compensation is 1.5 times the regular wage for the first two hours and 2 times the wage for every additional hour. However, the internal policies and payroll services in companies differ depending on the work industry and the designation.

Severance Pay

Employees are entitled to severance pay if the company dismisses them without fault after completing one year of service. Typically, severance pay ranges between 21 and 30 days of wage per year of service. However, it can change due to the reason for termination and length of service.

Some companies also put an upper cap on severance pay. The terms are mentioned in the employment contract.

Employee Contract Termination

For various reasons, either the employer or the employee can choose to terminate the employment contract. They are bound to serve the notice period as stipulated by law and agreed upon in the contract.

In cases of unjust termination of employees (for instance, due to the abrupt closure of operations in the country), a company has to pay the severance amount and benefits finalized in the contract.

Payroll Taxes For Businesses And Individuals

As discussed at the beginning, Dubai is an attractive destination for businesses looking to scale their international expansion. This is because of their tax-friendly business ambiance and almost no employee income tax.

The government does not charge Corporate Income Tax (CIT) from most businesses in the UAE. This helps companies operating here enjoy significant tax savings compared to other jurisdictions worldwide. However, they are required to register for applicable taxes such as VAT (Value Added Tax) if their imports and yearly taxable supplies cross a particular threshold. The standard rate is set at 5%. Apart from this, an excise tax is levied on certain products, such as carbonated drinks, energy drinks, and tobacco products.

Customs duties (import duties) are charged on imports as well.

Individuals are exempted from personal income tax in Dubai. They get to keep 100% of their annual income. They pay customs duties and VAT (at 5%) as and when required. Healthcare, education, and some food products are exempted from VAT. Miscellaneous taxes include charges for a vehicle or property registration, residency permits, and visa processing.

Payroll outsourcing service providers need to bear the tax regulations in mind and ensure compliance.