Around all successful businesses develop impactful resources if they wish to grow and expand their payroll outsourcing in Dubai. By doing so, they focus on the significant tasks that need more attention.
Managing payroll is one of the most important aspects of running a business. For expanding businesses or companies operating from multiple locations, it is wise to outsource their payroll management.
Payroll Middle East today brings you this ultimate guide that is sure to help simplify payroll outsourcing in Dubai, UAE. This guide explains the benefits, specifies the requirements for compliance, and helps you choose the right payroll outsourcing service in Dubai and much more.
What is Payroll Outsourcing?
When companies are expanding their business or operating from several locations, it becomes all the more important to outsource these payroll management tasks to payroll outsourcing providers.
Payroll Management is managing all the aspects of payroll:
Keeping track of the employee’s salary
- Awarding bonuses.
- Calculating and deducting tax applicable.
- Provide the compensation or benefits that come with the job package.
Payroll outsourcing, in simple terms, is delegating your company’s payroll management tasks to a third party that will keep track of your employees and provide them with the necessary benefits and compensation so that you can focus on growing your business more.
Benefits of Payroll Outsourcing In Dubai
There are several benefits of payroll outsourcing in the UAE, namely:
- Reduced costs.
- Improved accuracy.
- Compliance with regulations.
- Increase in efficiency.
- Access to expertise.
Reduced Costs
Outsourcing your payroll can help in reducing costs significantly. Instead of hiring and training new employees for your payroll management, you can simply outsource it to one of the most reliable payroll outsourcing services in Dubai.
It can also be beneficial if you have a small business. This way, you can save on your resources, avail great solutions, and not splurge all your savings putting a dent in your budget.
Improved Accuracy
Payroll outsourcing has more accuracy with its advanced software and algorithms. Payroll outsourcing services make sure that employees are paid on time, receive their compensations, and get their bonuses. Payroll outsourcing services in Dubai also calculate and deduct the taxes according to the tax laws.
Compliance with Regulations
Payroll outsourcing ensures compliance with regulations. The payroll outsourcing services in Dubai are actively vigilant in being legally compliant with the local labor laws. You do not have to worry about payroll legalities if your payroll outsourcing providers are already legally compliant with the UAE’s regulations.
Increased Efficiency
Payroll outsourcing for your business in Dubai has increased efficiency. As there is no internal team to manage nor does a whole team of people have to be occupied in keeping track of the payroll, it can have more efficiency in the team as a result.
Access to Expertise
With payroll outsourcing, you get access to expertise, experience, and training all already done without a dirham spent on your part. That’s a win!
Payroll Outsourcing services have already trained, experienced professionals who have expertise in payroll management.
UAE Labor Laws & Regulations For Payroll Outsourcing
Payroll outsourcing companies in Dubai follow UAE labor laws and regulations concerning the following:
- Wage Protection System (WPS)
- Minimum Wage
- Overtime pay
- End of service gratuity
- Leave Entitlement
- Tax laws
- Social Security contributions
- Labor contracts
- Termination and Severance pay
Wage Protection System (WPS)
Companies have to pay their employees via WPS; an electronic system to transfer salaries to employees right on time. Outsourced payroll solutions make sure that employees are paid through the proper channel on time.
Minimum Wage
The minimum wage in Dubai corresponding to the job title and description can be stated in labor contracts. Payroll outsourcing services in Dubai have to make it certain that the employees are getting paid a fair wage.
Overtime pay
Employers are to pay for overtime work:
-
- 25 times the hourly wage
- 5 times the hourly wage for work done between 9 pm to 4 am
Outsourced payroll solutions make sure that the employees receive their hard-earned overtime pay.
Payroll Middle East ensures the employees get their overtime calculation with compensation even if for some reason their employer neglects to do so.
End of service gratuity
Employees receive end-of-service gratuity based on their service length and final salary. Payroll outsourcing services oversee them getting their gratuity.
- Leave Entitlement
Employees in Dubai are entitled to leaves such as:- Medical leave
- Annual leave
- Maternity leave
Payroll services in Dubai assist employees in availing their medical, annual, or maternity leaves.
- Tax laws
Employees in UAE do not have to pay tax on their salary.
Payroll services in Dubai calculate taxes and make the necessary tax deductions as a part of payroll management helping out the employers. - Social Security contributions
Payroll outsourcing services in Dubai are to ensure employees and employers both contribute to a pension fund. - Labour contracts
In labor contracts, all employment terms are to be clearly stated. This has to be made certain by payroll outsourcing services in Dubai - Termination and Severance pay
Termination and severance pay conditions are outlined by the UAE Labour law. Payroll outsourcing services make sure that no unlawful termination happens and the employees receive their severance pay.
Top 5 Payroll Outsourcing Companies In Dubai
These are the top 5 payroll outsourcing companies in Dubai:
Payroll Middle East
Payroll Middle East is the most trusted payroll management solutions marketplace. Payroll Middle East provides people with the best platform to find their perfect payroll outsourcing solution in Dubai.
EOR Middle East
EOR Middle East is the leading expert in business expansions. They take care of everything from onboarding to payroll management. They offer the best services for your core EOR needs. These guys have got you covered.
PEO Middle East
PEO Middle East is a highly respectable payroll service solution. They simplify the hiring process and make payroll management look like a breeze. From onboarding to hiring and PEO, they have your back.
HLB Hamt
HLB HAMT Chartered Accountants offer high-quality accounting and audit services. Their excellence in financial services has been observed throughout the many years they have been working. One of their top services is payroll outsourcing.
PKF UAE
PKF UAE is one of the largest independent accounting firms in the UAE. One of their notable services is offering outsourced payroll solutions in Dubai.
Key Factors To Consider When Choosing Payroll Service Providers In Dubai
Are you considering opting for a payroll service provider for your business in Dubai? Here are some key factors you need to consider when choosing one:
- Understand the needs of your business
- Service and Technology
- Cost and Transparency
- Selection and Onboarding
- Data Collection and Integration
- Payroll Processing and Compliance
- Reporting and Support
- Ongoing Communication
Understanding Your Business Needs
The first step is to understand your business needs. You need to consider what you want for your business and identify what it needs.
The understanding of your business needs can range from its metrics to the scale of the workforce. This needs analysis also consists of its main objectives and the end goals.
You should start by identifying your business needs:
- How large scale your business going to be?
- Is it going to operate from several different locations?
- Will it be operating in different cities or different countries?
- How much is your business going to expand?
- Does your business have a fluctuating workforce as per the demands of different projects taken up by your company?
This is of course not an exhaustive list. After you have answered all the above questions and have identified any other ones that are relevant to your business, you can put a check on the first task of your checklist.
Service and Technology
Another thing that has to be in consideration is the service and technology that the business needs for its payroll management.
Compare different payroll outsourcing service providers. Consider the type of technology they are using to manage payroll. Payroll service providers often have state-of-the-art technology that manages payrolls for their clients. This can especially be a win for small to medium businesses.
Services are also an important factor to consider. Some payroll management service providers take full control of the managing part whereas some let the employers oversee the main operations. Payroll outsourcing services provide two different approaches: payroll outsourcing and payroll co-sourcing. This is another significant thing that should not be overlooked.
Cost and Transparency
Budgets are a building block of business empires. Before moving forward, business owners should go over the cost and compare prices of different payroll outsourcing services in Dubai. A reliable solution does not mean putting a dent in the business’ budget.
Transparency is key when it comes to managing payroll. To better address pay gaps between employees, these services are preferred by employees of several companies. Recently though employers have also started globally opting for payroll outsourcing. The service of payroll outsourcing offers transparency to everyone alike; helping employers to budget better and plan years with an all-new deeper insight available to them.
Selection and Onboarding
Payroll outsourcing providers select ideal candidates matching the job descriptions provided by payroll companies in UAE.
They also assist in making the onboarding process smoother by providing constant assistance to the employees.
Data Collection and Integration
Another thing to consider when choosing payroll service providers in Dubai is:
- How will the confidential data be treated?
- How will the data be collected and where will it be stored; online or offline?
- How is it going to be integrated?
- How will some necessary data be shared with the employees?
- Are the integration platforms reliable?
After all of this has been considered, it is time to move on to the next bullet in the consideration list.
Payroll Processing and Compliance
The next point in the bullet list to compare and contrast between different payroll service providers is payroll processing and compliance. Go over some of these points:
- Do you have enough time to calculate and pay all the taxes associated with the business?
- How is the payroll processed by the payroll outsourcing providers?
- How up-to-date are they on all the latest regulations concerning payroll?
- Are they legally compliant with all the payroll laws of the UAE?
Reporting and Support
Businesses consider the level of reporting and support payroll outsourcing services offer. Some prefer to be more involved with consistent reporting updates.
Employers seek different levels of support. They consider how the support system of payroll services in Dubai works.
Ongoing Communication
It is important to consider the level of communication. Payroll outsourcing provides services with their level of ongoing communication that can make or break the list. It is one of the things you consider when going for outsourced payroll services in Dubai.
Cost of Payroll Outsourcing in Dubai
The cost of payroll outsourcing in Dubai varies because of different factors. These factors may include:
- How reliable are the payroll outsourcing companies in Dubai?
- The service quality of payroll outsourcing companies in Dubai
- Your staff size
- Business location and expansions
Payroll Middle East is the best solution for payroll
Payroll Middle East is the best solution for payroll as we help with everything your payroll management needs. We provide a platform for you to find payroll outsourcing services in Dubai that suit you the most. It makes us an entrusted marketplace. So what are you still waiting for? Payroll Middle East is your best choice. Contact Us Now
