Are you dissatisfied with your current payroll system? Are you looking to improve cost efficiency, digitalization, operational efficiency, employee satisfaction, or all of the above?
Choosing the right payroll solution is crucial for businesses in the UAE. Whether you’re a startup or a well-established company, the efficiency and accuracy of your payroll system can significantly impact your operations.
There is a wide range of payroll solutions options available in the UAE to suit the dynamic business landscape here. You can find a payroll solution out there that ensures compliance, suits your current needs, and supports your growth. In this article, we’ll explore three key factors every UAE business should consider when selecting the best payroll solution to meet their unique needs.
- What Features Do You Need in a Payroll Solution?
The features you are looking for will be dependent on many factors, particularly the size of your business and the type of contracts you have with employees. Here are some features that could help your payroll become more efficient.
- Automated vs. Manual
Automated payroll systems are popular with many businesses because they free up admin time, reduce the chance of human error, and assure a timely payment to employees.
Automated payroll systems in the UAE are likely to be data secure and compliant, although it remains the responsibility of the employer to check this.
On the other hand, manual payroll systems may be more cost effective for start-ups, businesses on a tight budget, or those with a small number of employees. A manual system generally offers more flexibility to regularly alter payments as per your requirements, too. If you have contract employees on your books or a mix of employee types, a manual system could suit you better.
- Customer Support
Keeping your employees happy must be a priority. Knowing that you can get fast support for technical glitches should be essential. Missing payday can cause huge trust issues amongst your employees. Friendly, professional customer support lines, online chat and an online resource base of troubleshooting tips could therefore be crucial some day.
- Employee Self-Service
An employee-focused payroll solution offers your workforce flexible and straightforward access to their salary. Many payroll services will allow you to pay directly into an employee’s UAE bank account. This is likely to be a convenient option for many of your employees.
Other payroll solutions in the UAE offer a card solution where employees can withdraw money and make payments or money transfers overseas directly from their salary payments by using a VISA-powered card and without the need for a UAE bank account.
- Fast Payments and Approval Times
Salary payments should be fast. An efficient approval process should mean that the time between payments leaving your business account and reaching your employee’s account or payroll card is minimal. A slower approval process is likely to lead to frustration for both you and your employees.
- Low Fees for Bonus Payrolls
If you are using an automated payroll system, you may find paying employees bonuses or commissions can be costly in terms of additional fees. If this model of employee payment is applicable to your business, then be certain to choose a payroll solution that offers low or zero fees for bonus payments. Alternatively, you may find a manual payroll solution more cost effective overall.
- Do You Want Integration with Other Business Systems?
Integration of your payroll system with other business systems software can save you time. Salary payments must be recorded in your financial records so a payroll system that can sync information with other bookkeeping systems could be very helpful. If you use time tracking software, integrating your payroll system with this could also help save time on salary calculations, too.
On the other hand, if you are happy to continue to manually consolidate records, then a more expensive integrated solution may not be right for you.
- Are You Certain the System is UAE Law Compliant?
Compliance with all relevant UAE laws and regulations is a must for any payroll solution. Failure to be compliant when paying salaries can result in heavy fines and penalties for your business. Therefore, you need to be sure that the payroll solution of your choice follows these requirements:
- Wages Protection System (WPS) Compliant
The WPS system was introduced by the UAE government to ensure that all employees have timely and secure access to their full salaries. To be compliant with the WPS, you must pay your employees through an electronic, WPS-registered salary transfer system.
- UAE Labor Laws Compliant
To comply with UAE labor laws, you and your employees must make social security contributions. It is your responsibility to ensure these payments are made correctly.
Under UAE labor law, you must also pay your employees on time. They should be paid monthly, typically on the last working day of the month.
Making an Informed Choice
Selecting the right payroll solution is more than just a financial decision — it’s an investment in your business’s efficiency and compliance. By focusing on key factors such as essential features, integration with other software, and regulatory compliance, you can ensure your payroll system not only meets current needs but also supports future growth.
Take the time to evaluate your specific business requirements, and you’ll be well equipped to choose a payroll solution that drives long-term success in the UAE market.
