When one becomes a company’s full-time employee in the UAE, as part of your pay package there are entitlements to avail a salary or a wage, a pay slip, leave packages, and other benefits or allowances accrued to full-time employees.
The Scope of Payroll in the UAE
Enforcement of payroll compliance in the UAE is often a complex task to manage for employers, and adhering to employment regulations and standards is compelled upon companies. When employing full-time staff, employers of record services can simplify the payroll intricacies. Payroll for full-time employees ought to include taxes, employer contributions, overtime payments (if applicable), end-of-service benefits, and employee salary payments.
Employers are obligated to include in the calculation, contributions to health insurance and pension plans as part of the full-time employee payroll in the UAE. Other employer contribution requirements may include housing allowances, gratuity, and leave allowances. Additionally, if an employer does not offer a group health insurance plan for their workers, then individual health insurance coverage must be provided at the employer’s expense.
What is a Full Time Employee?
A full-time employee is an individual who works for an employer on a continuous, long-term basis. Generally, this type of employment arrangement has a 40-hour work week with the employer providing benefits such as health insurance and vacation time.
What Does the Payroll Process in UAE Involve?
The employer of record ensures that all full-time employee Payroll obligations are met. This includes paying wages and salaries, maintaining accurate records, filing taxes, providing leave entitlements, and any other necessary HR services to ensure compliance with applicable local regulations. Additionally, EORs must register employees at the Ministry of Human Resources & Emiratisation (MOHRE).
Employers should ensure that full-time employees receive the appropriate salary and benefits. Payroll should be generated every month, with additional payments such as overtime and bonuses provided as deemed fit by the UAE employment statute. Additionally, employers must provide an itemized pay slip to each employee detailing their earnings for the month.
Payroll should be generated every month, with additional payments such as overtime and bonuses provided. Employers should also provide an itemized pay slip to each employee detailing their earnings for the month. Leave entitlements should be determined by UAE labor laws and employer policies. Moreover, employers must maintain detailed records of leave taken by their employees for reporting purposes.
By following these payroll procedures, employers can ensure that full-time employees receive the appropriate salary and benefits as well as leave entitlements conferred by UAE labor laws. Additionally, employer-of-record services are available to assist employers in complying with employer obligations under local labor laws.
Employee Leaves Entitlement in the UAE:
Full-time employee leaves entitlements are determined by UAE labor laws and employer policies. Employees are entitled to an annual paid holiday of 30 calendar days; however, this can vary depending on employer policy or if the employer has collective bargaining agreements in place with trade unions or other organizations. Employers are also required to maintain detailed records of leave taken by their employees for reporting purposes.
All employees in the UAE are entitled to public holidays. These include Islamic religious holidays such as Eid al-Fitr and Eid al-Adha, as well as National Day, which is celebrated on December 2nd every year.
Aside from the public holidays, paid leave is also granted by law for full-time workers in the UAE. This varies depending on the length of service – with part-time or temporary employees not being eligible for any paid leave allowance. Full-time employees who have completed six consecutive months of service are eligible for 30 days of paid leave, whereas employees who have been employed for two or more years may be entitled to a maximum of 45 days.
Apart from the public holidays and the paid leave allowance, employers in the UAE are also entitled to sick leave, maternity/paternity leave, breastfeeding leave, and other allowances that may be offered by their employer.
Sick leave is available for full-time employees at any stage in their employment term – with up to 60 days granted per year depending on the length of service.
Maternity / Paternity leave
Maternity/paternity leaves are also provided to full-time workers but this depends on employer policy and local legislation.
Breastfeeding leave is an essential entitlement too – with it being mandatory for any employer in the UAE to provide a minimum of two hours per day of paid leave for any female employee who is breastfeeding.
Other leave allowances
Other allowances are also offered depending on employer policy and this includes housing, travel, medical insurance, or bonuses at provided times of the year.
Overall, it is essential for UAE corporations to payroll outsourcing in UAE to combat payroll/employer record compliance intricacies. Thus, contact us today and we shall be happy to assist you!
With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.