Introduction
The UAE’s Wage Protection System (WPS) mandate is unforgiving: salaries must be processed through authorized channels, on time, in full, and documented to MOHRE standards every single month. A single late payment more than 15 days after due date triggers work permit suspension. Repeated violations cascade into business license restrictions, inspection warnings, and reputational damage on government compliance lists.
Beyond WPS, the complexity multiplies: end-of-service benefits (gratuity) calculations must follow precise formulas. Leave balances must be tracked meticulously. Termination settlements must be calculated correctly or expose you to employee disputes and labour ministry fines. Regulatory changes (unemployment insurance, maternity leave expansions, domestic worker WPS additions) require immediate system updates.
At CA ARC, payroll is strategic infrastructure: a managed service that eliminates compliance risk, ensures your team is paid accurately every time, and frees your leadership to focus on growth instead of administrative crises.
The CA ARC Difference: Compliance First Payroll Partnership
CA ARC architects’ compliance systems
WPS Expertise Embedded
Our team has deep familiarity with MOHRE portal mechanics, SIF file formats, bank submission protocols, and real time monitoring. We don’t just submit files; we ensure they pass validation on the first attempt.
Gratuity & EOSB Mastery
Gratuity calculations, leave encashments, final settlements, and termination documentation handled with precision eliminating employee disputes and audit exposure.
Proactive Regulatory Monitoring
We track WPS updates, labour law amendments (April 2025 domestic worker additions, maternity/paternity changes, unemployment insurance), and new deduction categories updating your systems before compliance deadline.
Fraud Prevention Built-In
Cross checks between HR records and payroll (ghost employee detection), segregation of duties (no single person controls entire process), and regular audits ensure your payroll is tamper proof.
MOHRE & Bank Liaison
If issues arise (SIF rejection, payment delay, employee inquiry), we handle MOHRE communication, bank troubleshooting, and resolution.
Our Comprehensive Payroll Outsourcing Service Scope
Monthly Payroll Processing & Calculation
Your team’s salaries are calculated with precision and processed on time, every time
Salary Calculations
Base salary, allowances (housing, transportation, utilities), deductions (insurance, loans, disciplinary), overtime (rates based on hour type), and special payments (bonuses, commissions, gratuity advances) calculated per employment contract.
WPS Compliance
Salary Information File (SIF) generated in MOHRE approved format, validated against labour card records and employment contracts, and submitted to authorized bank or MOHRE portal within required deadlines.
Accuracy Verification
Pre-submission verification ensuring all amounts match contracts, employee IDs align with MOHRE records, bank details are current, and special conditions (unpaid leave, salary adjustments) are accurately reflected.
On-Time Submission & Payment
SIF submitted well within the salary due date to ensure timely WPS processing and swift confirmation from Bank.
Payment Reconciliation
Post payment verification that actual transfers match SIF amounts; discrepancies flagged immediately and corrected.
End-of-Service Benefits (EOSB) & Gratuity Management
We eliminate gratuity calculation errors and employee disputes through precise EOSB tracking
Monthly recording of employee gratuity liability based on tenure and basic salary.
Tracking of employment gaps, unpaid leave periods, and service breaks that affect gratuity eligibility. Adjustments made if continuity is broken (reducing gratuity entitlement).
Upon termination, comprehensive settlement prepared Including:
- Gratuity (based on years of service and basic salary)
- Unused annual leave encashment
- Accrued salary through last working day
- Contractual benefits and bonuses Deductions (loans, disciplinary, overpayments)
- Net final amount due to employee
Settlement letter prepared in both English and Arabic; employee sign-off obtained; payment processed through WPS; UAE labor law compliance confirmed.
Assistance with final documentation required for employee visa cancellation (labor ministry clearance, final salary proof, gratuity receipt).
Leave Balance Maintenance & Encashment
Accurate leave tracking prevents disputes and ensures compliance
Annual Leave Accrual
Minimum 21 working days (30 calendar days) accrued annually per UAE labor law; additional 10 days for GCC nationals; public holidays tracked separately (not deducted from leave).
Leave Balance Updates
Monthly tracking of leaves taken (annual, sick, unpaid, special, maternity, paternity). Unused leave carried forward per company policy (typical: 1–2 years carryover allowed).
Leave Encashment Upon Termination
Unused leave calculated and paid out as part of final settlement.
Leave Reconciliation
Quarterly verification that leave balances match MOHRE records; discrepancies corrected immediately.
WE SPECIALIZE IN SERVING
Startups & Growing SMEs
You’ve hired your first 5–50 employees. Managing payroll internally is manual, error prone, and distracting from core business growth. Outsourced payroll removes the burden and ensures WPS compliance from day one.
Established Mid Market Companies
You have 50–500 employees and payroll complexity (multiple salary cycles, international transfers, complex benefits). Outsourcing reduces HR/Finance overhead while ensuring regulatory precision.
Rapidly Scaling Businesses
You’re hiring fast and need payroll to scale with you from 20 to 100 employees without building internal infrastructure. Outsourced model accommodates growth seamlessly.
International Companies Entering UAE
You’re opening a UAE entity and need compliant payroll setup. We handle MOHRE registration, WPS setup, employee registration, and ongoing processing no learning curve required.
Companies Focused on Core Business
You want your HR and Finance teams focused on strategic initiatives (talent development, financial planning, compliance advisory), not manual payroll processing. Outsourcing frees capacity.
Businesses Preparing for Investment or Exit
Clean, auditable payroll records are essential for due diligence. We ensure your payroll documentation is investor ready and compliant eliminating payroll related deal delays.
Your Next Step: Request a Custom Payroll Quotation
Don’t risk WPS compliance or payroll errors. Book a Payroll Consultation with our team. We’ll review your current payroll setup, assess your business stage and headcount, and provide a custom quotation for outsourced payroll services including WPS compliance, gratuity management, leave tracking, and regulatory reporting.
