As companies are expanding their operations in other countries, there is a need for diverse talent that can not only help them operate efficiently in local markets, but can also bring in new perspectives. Payroll outsourcing services have become a popular solution, especially in the UAE, but it also encompasses several challenges that companies have to navigate such as labor laws, tax regulations, compliance requirements, and cultural differences

Here’s what you need to know about payroll outsourcing in UAE and some of the best payroll providers you can use for your employees. 

What to Look For When Considering a Payroll Outsourcing Service in the UAE

Here are some of the key elements you need to look for in a Payroll outsourcing service in the UAE:

Local Compliance Experts

Labor and tax regulations in the UAE are complex and it is essential for your payroll outsourcing provider to have a deep understanding of these laws. Moreover, choosing local compliance experts who are well-versed with UAE’s employment laws is mandatory as they possess specialized knowledge and capabilities to ensure your company complies with all regulations and avoids the risk of penalties. Your first course of action in this scenario is to check if the provider has in-house experts or if they are partnering with other entities. 

What you also need to understand is that UAE’s payroll laws are different from that of other countries. Here are a few examples:

• The UAE does not impose income taxes on individuals.
• Under the Wages Protection System, Employers in the UAE are required to make contributions to the government for their employees' social security and healthcare.

Payroll Management Platform

Payroll management systems are undoubtedly critical to any business for streamlining payroll processing activities. Choosing a payroll service provider that offers a robust payroll platform is mandatory because it can:

• Automate mundane and repetitive tasks with minimal errors.
• Ensure accurate and timely payments.
• Maximize compliance with labor laws, eliminating non-compliance risks and associated penalties.
• Promote transparency and trust among your employees.

Gloroots, for example, provides a SaaS-based payroll management platform that simplifies global payroll in a centralized manner. Its one click payroll feature ensures timely payments for all employees, regardless of their location and their onboarding process can be completed in just six simple steps. The platform also offers higher transparency in pricing and customized benefits, compliant with local laws. 

Customer Support

Exceptional customer support lies at the core of every successful business relationship. In the case of payroll outsourcing in UAE, errors or delays can have major consequences for your business and employees. Providers with quick, responsive, and efficient customer support teams can swiftly resolve problems, preventing potential financial or legal complications. 

Here are a few examples on how reliable and accessible customer support can improve employee experience for your employees in the UAE:

• Prompt Issue Resolution: Implementing a 24/7 IT helpdesk where issues are promptly resolved via phone or chat ensures employees can get back to work, minimizing downtime and improving productivity and workplace satisfaction.
• Training and Development Support: A reliable and dedicated HR helpdesk that offers clear guidance on training programs and career development opportunities can ensure employees feel supported in their professional growth. Employees also will have a platform to directly communicate with HRs and address any grievances. This can be facilitated through self-service portals or chatbots.
• Cultural and Language Support: The UAE is culturally diverse, with people from various nationalities and backgrounds. Customer support teams should be capable of providing multilingual assistance. For example, a support team fluent in Arabic, English, and other relevant languages will be able to bridge communication gaps between employees seeking assistance.

One-stop shop for payroll, benefits, and compliance

Global payroll does not only involve payroll services, but also encompasses other HR elements such as onboarding, offboarding, performance management, benefits administration, employee engagement, compliance, and more. Using separate systems will not only be cumbersome, but will also lead to increased costs. A reliable payroll provider should offer a centralized system that consolidates all these into a single platform for easy accessibility and cost-effectiveness. 

Partnering with such payroll providers can offer a plethora of benefits such as:

• Streamlined payroll processes: A centralized platform will handle all payroll activities within a single system, reducing complexity and administrative workload.
• Improved employee experience: Employees will have easier access to their payroll information, benefits through these self-service portals, enhancing transparency and their overall satisfaction. 
• Enhanced visibility and compliance: Centralized payroll providers keep themselves up-to-date with changing tax laws and regulations, ensuring compliance and reducing the risk of penalties. They also allow you to generate accurate compliance reports and filings automatically, saving time and reducing the risk of manual errors. 

A Comprehensive List of Payroll Providers for UAE

If you’re looking for some of the best payroll providers in the UAE, here are a few recommended options you can choose from:

Gloroots

Gloroots is a SaaS-based payroll platform that enables businesses to hire talent and manage compliance globally. It helps streamline international hiring and payroll processing through its Employer of Record, contractor management, and automation capabilities. It also offers consolidated global workforce oversight and compensation for employees across 140+ countries, ensuring compliance with local labor laws. 

Key features:

• Gloroots’ simplifies global hiring with just a 6-click onboarding process, after which the platform automates contract creation and benefits administration.  
• The platform offers multi-currency payroll solutions, covering both traditional and even cryptocurrency payments.
• It also offers a self-service portal for employees for them to access employee handbooks, review benefits, manage leaves, and access timesheet facilities. 

Outsourced Payroll Solutions

Outsourced Payroll Solutions (OPS) is a payroll outsourcing platform that assists companies in the Middle East with payroll processing of remote talent. The platform commits to providing sustainable human resource management and recruiting top-tier professionals for your business. Additionally, OPS also offers payroll training to allow professionals to advance in their careers and that can aid your company navigate the intricate environment of the Middle East.

Key features:

• OPS’ powerful and intuitive cloud-based HR Management System can also be used across mobile or web interfaces.
• OPS’ employee engagement app elevates the entire employee experience, serving as a communication hub for in-app interactions.
• The app’s self-service capabilities boost transparency and make HR tasks more efficient. 

Papaya Global

Papaya Global provides a cloud-based payroll platform for global employee management. You can handle all your global payroll and payments, EOR workers, and contractors within a centralized compliant platform. It can handle cross-border payroll runs in over 100 currencies and manage benefits in more than 160 countries, even helping secure work and residence permits, which are mandatory especially in the UAE. 

Key Features:

• Papaya Global’s Workforce OS seamlessly integrates with leading tools like Workday, Netsuite, etc. allowing you to connect global payroll with your tech stack.
• The platform’s AI-powered payroll validation ensures 100% data accuracy and payment distribution.
• Local partners can provide country-specific advisory services and certified experts guarantee your compliance in 160+ countries.

GreytHR

GreytHR is a smart and intelligent payroll solution that streamlines and automates HR and payroll processes for companies regardless of their size. It offers a range of services from employee information management, attendance tracking, payroll processing, and compliance. 

Key features:

• GreytHR offers an easy-to-use, automated leave management system, specially designed for Small and Medium enterprises. It streamlines critical areas of leave allocation.
• The platform’s online attendance management system provides real-time integration with biometrics, smart card, and facial recognition apps for centralized time and attendance tracking.
• Its employee self-service portal and mobile app helps simplify leave and attendance management. 

Multiplier

Multiplier is one of the world’s leading global employment platforms that manages payroll in multiple currencies and handles US-specific payroll taxes and filings. Its proprietary technology simplifies the employment process by managing the complexities of payroll, benefits and taxes,as well as local compliance. With Multiplier, you can pay any number of global employees with ease. 

Key features:

• Multiplier allows you to pay employees and freelancers from 150+ countries through a simple one-click payroll process.
• It offers a multicountry salary calculator to ensure accurate payment calculations.
• The platform offers a mobile app as well to perform various tasks and access information related to their employment without the need for HR intervention.

Manpower Group Middle East 

Manpower Group Middle East operates across multiple industries, offering workforce solutions designed to meet diverse business needs. They cover various aspects of workforce management and talent acquisition, ranging from permanent recruitment to executive search. 

Key services:

• Manpower Group’s Emiratisation project aims to increase the number of jobs in the UAE by citizens to increase social and economic upliftment.
• The platform offers an exceptional network of highly qualified candidates to meet permanent recruitment needs in the region.
• They offer Employer of Record services throughout the UAE, with several benefits such as candidate care programs, HR infrastructure and administrative support, dedicated point of contact, etc. 

Important things to consider when choosing a payroll service provider in UAE

When choosing a payroll service provider in the UAE, it’s essential to address the following questions to ensure you make the right choice:

1.How do payroll outsourcing companies charge for their services?

The cost of payroll outsourcing can be divided into the following pricing models:

• Tiered Pricing Model: Outsourcing fees are often divided into tiers or packages depending on your size of your business. 
• Pay-Per-Employee Pricing: Under this model, you will be charged a fixed fee for each employee on your payroll. 
• Transaction-based Pricing: This structure is ideal for businesses that have fluctuating payroll processing needs. Hence, charges are levied per payroll transaction. 
• Package pricing: This plan combines multiple payroll-related services in a single, comprehensive offering. You can benefit from the convenience of having all your payroll needs covered in one package, making this model more cost-effective.
• Customized Pricing Agreements: This plan offers more flexibility in tailoring the outsourcing cost based on your business requirements. This is ideal if your business has unique payroll needs, such as complex pay calculations or compliance demands.

2.Do they have case studies specific to servicing payroll in the UAE?

Case studies reflect the payroll service provider’s success stories in helping businesses successfully manage their payroll requirements. For businesses looking to expand their workforce in the UAE, it can initially be a challenge to navigate the country’s Wage Protection System and other labor laws. Hence, going through case studies that focus on UAE will ensure reliability and boost confidence for companies looking to take up a payroll service. 

3.How does the company deal with changes in payroll regulations and laws in the UAE?

Dealing with changes in payroll regulations and laws in the UAE involves the following steps:

• Monitoring and staying up to date with all regulatory changes.
• Performing a compliance assessment to understand the impact of these changes on current payroll processes.
• Updating payroll policies and procedures to ensure compliance with new regulations.
• Communicating all changes with employees and relevant parties.
• Consulting legal and financial advisors on risk mitigation and financial implications of such changes.

4.Do they provide employee self-service portals?

Employee self-service portals will be beneficial as it enables employees to directly complete important job-related tasks such as updating contact information, downloading payslips, enrolling in benefits, requesting time offs, and addressing grievances directly to the HR. This reduces administrative burdens for the HR and also enhances transparency and employee satisfaction.

5.Can they integrate with our existing HR and accounting software?

Payroll platforms should seamlessly integrate with existing HR and accounting softwares to:

• Provide a holistic view of employee data, financials and payroll information.
• Maintain accurate comprehensive records, needed for compliance purposes.
• Eliminate the need for manual data entry, thus saving time and reducing risk of errors.
• Reduce administrative costs associated with payroll and HR management by automating and streamlining all processes.

6.Are there any hidden fees or additional charges?

Hidden fees and additional charges such as implementation fees, exchange rate fluctuation costs, data management fees, upgrade fees, and maintenance costs should be thoroughly investigated before choosing the right payroll provider.

7.Do you offer any additional services, such as HR management, tax advisory, or employee benefits administration?

You can find a range of additional services beyond payroll processing such as HR management, tax advisory, employee benefits administration, etc. These services help streamline core HR functions such as employee onboarding and offboarding and performance management. They also help with tax filing, audit support, designing competitive benefits packages, and managing employee benefits.

8.Can you assist with payroll for expatriates and ensure compliance with their specific needs?

Handling expatriate payroll involves navigating local labor laws and regulations and specialized payroll providers are well-equipped to provide assistance on that. Payroll services have streamlined processes and automated systems that reduce manual errors and ensure compliance with tax withholdings, deductions, and reporting. 

Transform Payroll Outsourcing in the UAE with Gloroots

Payroll outsourcing in UAE can offer a strategic advantage for your company where you can seamlessly conduct payroll operations while enhancing compliance with the country’s labor laws and reduce costs in the process. You can make this easier with Gloroots as we offer global payroll services for over 140 countries, simplifying hiring and ensuring that you remain compliant with UAE’s regulations while also building a positive and diverse workforce.

If you’d like to know more about Gloroots’ services and capabilities, contact us today and we will assist you.