Guide
A Guide to Running Payroll in the UAE
Global payroll
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Payroll in UAE: Your Complete Guide for 2025
The UAE's tax and regulatory framework offers a favorable environment for international businesses seeking to expand into new markets. However, navigating the UAE's payroll and labor laws can be a challenge. Employers need to be aware of complexities such as legislation differences between free zones and the mainland, rules for UAE nationals vs. expats, the government-mandated WPS payment system, and more.
Deel is a UAE government partner that helps bring new companies and talent to the region. Our position as a leading payroll and compliance solution makes us uniquely suited for this collaboration. With our all-in-one platform, we have helped thousands of global businesses expand cross-border by streamlining their compliance, payroll, and HR operations.
Deel Payroll operates in over 130 countries across the world, powered by state-of-the-art, integrable software, and a team of in-house experts who specialize in international payroll, compliance, and employment regulations.
In this guide, we bring you this wealth of experience to help you understand the step-by-step process required to set up payroll in the UAE.
Cut through hours of guesswork, research, and delays, and avoid legal setbacks for your business expansion, with this up-to-date resource.
Ready to learn more? Download Deel's guide to payroll in the UAE today.
This guide covers:
- The main regulatory bodies and laws that govern UAE payroll for businesses
- Essential registrations and procedures needed to start hiring in the UAE
- Tax, social security, and pension obligations (and when they apply)
- A step-by-step process for setting up and executing payroll payments
- Options for running payroll in the UAE (in-house vs. outsourcing)
Who is this guide for?
This guide is intended for:
- Expansion teams researching payroll in the UAE before entering the market
- Founders and CEOs exploring UAE payroll and tax legislation
- Finance and payroll teams looking for information on UAE payroll processes
- HR professionals and payroll managers responsible for UAE payroll
- Anyone looking to understand UAE payroll and labor laws
Disclaimer: The payroll insights included in this guide are based on information available at the time of publishing (2025) but are subject to change. Always seek legal advice to confirm the latest regulations and requirements before running payroll.
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FAQs
What is the payroll tax in the UAE?
In the UAE, employers and employees pay no payroll taxes.
Is salary calculated for 30 days or 31 days in the UAE?
In the UAE, salary is typically calculated based on 30 days in a month (even if the month has 28, 29, or 31 days).
Is there a 13th-month pay in the UAE?
There is no legal obligation for a 13th-month salary in the UAE. However, employers can choose to pay a bonus or additional compensation at their discretion.
What is the minimum salary in the UAE?
As of 2025, the UAE does not impose a legally required minimum salary on employers.
Does Deel offer payroll services in the UAE?
Yes, Deel offers comprehensive payroll services in the UAE, including our real-time payroll tool, which runs instant gross-to-net (G2N) calculations for employee salaries.