Payroll & WPS Compliance Checklist

The core mechanism MOHRE uses to monitor salary payments. Non-compliance here triggers the fastest and most visible penalties.

• Registered with a WPS-approved bank, exchange house, or finance institution

  Salaries can only be paid through an MOHRE-recognised WPS agent — a standard bank transfer outside this system doesn't count.

• Monthly Salary Information File (SIF) submitted correctly

  The SIF must match actual disbursed amounts — mismatches between the file and the transfer are a common source of flags.

• Wages paid on or before the 1st of the following Gregorian month

  The unified deadline under Resolution 340/2026 — confirm your payroll calendar has been updated to reflect this, not the old cut-off.

• At least 85% of employees and 85% of total wage value paid on time

  Both thresholds apply together. A single large delayed payment can breach the value threshold even if most employees were paid.

• New hires included from their first payroll cycle

  The prior grace period for new employees no longer applies automatically — check onboarding-to-payroll handoff timing.

• Any payroll delegated to a third party (EOR, payroll provider) is documented per the new delegation rules

  If you outsource payroll, confirm the provider's WPS registration and delegation paperwork are current — liability doesn't fully transfer by default.

• Proof of payment retained per employee, per cycle

  Keep transfer confirmations and SIF submission records — these are what you'd produce first in a MOHRE inquiry.

Applies to all employees — UAE nationals and expatriates alike — and is one of the most commonly miscalculated payroll items.

• Gratuity calculated on basic salary only

  Allowances (housing, transport, etc.) are excluded from the calculation base — including them is a frequent overpayment error.

• Correct rate applied by tenure: 21 days' basic salary per year for the first 5 years, 30 days' per year beyond that

  Mixed-tenure calculations (e.g. an employee crossing the 5-year mark mid-cycle) need the blended rate, not one rate applied throughout.

• Resignation vs. termination circumstances reviewed before final calculation

  Entitlement can be reduced depending on how the contract ended — confirm against the current labour law before finalising the payout.

• Gratuity paid within 14 days of the employee's last working day

  This is a hard deadline, not a guideline — late payment exposes you to the same escalation risk as a missed monthly wage.

• End-of-service statement and file provided to the employee

  Keep a signed record of the final settlement breakdown for both parties' protection.

Applies only where you employ UAE or GCC nationals — skip this section if your workforce is fully expatriate, but confirm that's actually the case.

• UAE/GCC national employees registered with GPSSA (or relevant emirate-level pension authority)

  Registration is separate from WPS enrolment and easy to miss when onboarding a national employee for the first time.

• Employer contributing 12.5% of gross salary

  Calculated on gross salary, not basic — a different base than the gratuity calculation above.

• Employee's 5% contribution deducted and remitted correctly

  Confirm the deduction appears correctly on payslips and reconciles with what's remitted to GPSSA.

• Contribution records reconciled monthly against GPSSA statements

  Catches drift early — discrepancies compound quickly over a national employee's tenure.

Leave accrual errors don't usually trigger enforcement the way WPS delays do, but they're a top source of employee disputes and MOHRE complaints.

• 30 calendar days' annual leave accrued and tracked per employee

  Confirm accrual starts correctly and pro-rates accurately for employees who joined mid-year.

• Sick leave, maternity, and paternity leave applied per current entitlements

  Check your policy documents match the latest labour law figures, not an outdated internal handbook.

• Mandatory health insurance in place and compliant with emirate-specific rules

  Requirements differ between Dubai, Abu Dhabi, and other emirates — confirm the policy matches the employee's work location, not just head office.

• Public holiday pay and unused leave payout calculated correctly on exit

  Unused annual leave must be paid out on termination — a frequent gap in final settlement calculations.

The paper trail that makes every section above defensible if MOHRE, an auditor, or an employee raises a query.

• Employment contracts match MOHRE-registered terms and current payroll records

  Salary changes, promotions, and role changes should be reflected in both the contract and the MOHRE system, not just internally.

• Employee classification correctly reflected in payroll (contract type, full-/part-time, work location)

  Misclassification affects everything downstream — gratuity, leave, and WPS reporting all key off this.

• Payroll records, timesheets, and leave logs retained and audit-ready

  Keep these organised per employee, not just per pay run — this is what speeds up any compliance review.

• Internal payroll audit conducted at least quarterly

  Catching a drift after one quarter is a correction; catching it after a year is a liability.

This checklist is an operational reference, not legal advice — labour law and WPS enforcement details can vary by emirate and free zone. Confirm specifics with MOHRE or your legal counsel before acting on any item above.