UAE payroll compliance

Payroll Software for UAE — WPS, End of Service & Labour Law

Peymatrix handles UAE-specific payroll requirements — WPS file generation, End of Service gratuity calculation, and MOL reports — automatically, so your HR team stays compliant without manual effort.

UAE payroll requirements

Payroll in the UAE has several mandatory requirements that differ from other markets. The Wages Protection System (WPS) requires employers to submit a salary information file to a registered WPS agent bank for every pay cycle. Non-compliance with WPS results in fines and can affect business licence renewals.

End of Service gratuity is a legally mandated payment that every employee is entitled to upon leaving — calculated based on years of service and reason for termination. Getting this calculation wrong exposes employers to legal liability. Peymatrix automates both calculations and keeps them updated with current UAE Labour Law provisions.

Key UAE compliance features

WPS File Generation
Peymatrix generates a WPS-compliant Salary Information File (SIF) after each payroll run. The file is ready for upload to your registered WPS bank.
End of Service Gratuity
Gratuity is calculated per UAE Labour Law — different rates apply for resignation vs. termination, and years of service thresholds are applied correctly.
Annual Leave (UAE Law)
Annual leave entitlements accrued and managed per UAE Labour Law. Leave encashment calculated correctly at exit.
MOL Reports
Ministry of Labour report formats prepared automatically for regulatory submission requirements.
Multi-Currency
Process payroll in AED and handle multi-currency scenarios for organisations with employees across entities.
India + UAE Together
If your organisation operates in both countries, manage both payroll regions in one Peymatrix account with separate compliance rules per region.

Key capabilities

  • WPS SIF file generation ready for bank submission each pay cycle
  • End of Service gratuity calculation per UAE Labour Law
  • Annual leave calculation and encashment per UAE law
  • MOL (Ministry of Labour) report generation
  • Multi-currency payroll — AED and other currencies
  • Payslip generation for every employee each cycle
  • Leave management per UAE labour law entitlements
  • Employee self-service portal for payslip access and leave applications

Frequently asked questions

Run UAE-compliant payroll with confidence

14-day free trial. No credit card required. WPS and gratuity included.