Managed payroll service costs typically include a base monthly fee covering standard processing for a defined number of employees, per-employee processing fees for additional headcount, setup and onboarding charges for initial implementation, and fees for supplementary services like WPS registration, benefits administration, or expatriate tax consulting. Pricing varies based on employee count, payroll complexity, reporting requirements, and integration needs with US-based systems. VJM Global offers transparent pricing with no hidden fees, providing detailed quotes based on your specific requirements. Most US clients find outsourced managed payroll more cost-effective than maintaining in-house UAE payroll expertise, especially when considering compliance risk mitigation and time savings.

UAE gratuity is calculated based on an employee's length of service and final basic salary. For limited-term contracts, employees receive 21 days of basic salary for each year of service for the first five years, then 30 days for each subsequent year. For unlimited contracts, it's 21 days per year for the first five years, then 30 days per year thereafter, capped at two years' salary. Gratuity calculations exclude allowances and are prorated for partial years. VJM Global maintains accurate service records, performs monthly accrual calculations for financial reporting, ensures proper provisioning in your accounts, and calculates final settlements including unused leave encashment when employees depart.

Standard managed payroll processing follows a monthly cycle with specific milestones: payroll data collection and validation (days 1-5), salary calculations including deductions and benefits (days 6-10), client review and approval (days 11-15), WPS submission and bank processing (days 16-20), and salary disbursement with payslip distribution (days 21-25). Statutory filings and reports are submitted within the final week. VJM Global maintains this structured timeline while accommodating your US-based approval processes and reporting deadlines. For new setups, initial onboarding including system configuration, employee data migration, and compliance verification typically requires 2-3 weeks before the first payroll cycle.

The WPS is a mandatory electronic salary transfer system in UAE that ensures timely and full payment of wages to employees. Employers must register with an approved WPS agent (typically a UAE bank or exchange house) and transfer salaries through this system by a specific date each month. The Ministry of Human Resources and Emiratisation monitors WPS compliance, and violations can result in penalties, work permit restrictions, or labor ban. VJM Global handles complete WPS administration including registration, monthly salary file preparation in the required SIF format, coordination with your financial institution, and submission of all required reports to ensure uninterrupted compliance.

US companies operating in UAE must comply with UAE Federal Decree-Law No. 33 of 2021, which governs employment relationships. Key requirements include timely salary payments through the Wage Protection System (WPS), accurate calculation of end-of-service gratuity, proper management of annual leave and sick leave entitlements, and adherence to working hours regulations. Additionally, companies must maintain compliant employment contracts in Arabic, contribute to pension schemes for UAE nationals, and ensure proper documentation for visa and labor card processes. VJM Global manages all these compliance elements while coordinating with your US-based HR and accounting systems to maintain consistent reporting.