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June 13, 2019

Payroll Processing : Dubai Perspective

Introduction
UAE in general and Dubai, in particular, is referred to as the oasis in the middle east. With a GDP size of half a trillion dollars, the country is growing strong at over 3.5% per annum. The Dubai Expo 2020 is going to be another major boost for the local economy.
The strong growth has also brought in many businesses to set up in Dubai. The Dubai government is one of the business-friendliest countries in the world.  With no income tax, payroll processing is comparatively much simpler than other countries.  But it is an administrative task and requires dedicated resources depending upon the size of your company in Dubai.
A cost-effective solution is to outsource the activity to a specialist payroll processor that can execute the task faster and usually at a fraction of a cost you take to execute internally.

But, what is payroll processing?

In the simplest term, payroll processing refers to the management of the salary/wage system of the employees. Under this service, the pay of an employee is calculated over a selected period of time by utilizing the information like timings, benefits, earned leaves, over time, holidays, etc. The management can be sometimes quite complex which naturally then involves a high cost for the company.

Payroll Outsourcing
Payroll processing is a laborious process that requires a lot of efforts, human resources and investment in software. It a very time-consuming process due to which companies either hire an in-house team to look after payroll processing or hire payroll service providers.
Hiring payroll service providers is very popular due to the complexity involved in the process.
Outsourcing payroll work has various benefits. Some of the benefits are-

  • It is cost effective.
  • Saves the time of human resources.
  • Payroll service providers are well aware of regulations
  • Compliances are taken care of by the service provider.
  • Confidentiality is maintained regarding client’s compensations or pay structures

Importance of Payroll Processing

  • Determination of compensation- Payroll processing helps in determining the accurate compensation of any employee by compiling the holidays, leaves, late comings, earned leaves and other things that add up to the compensation structure. It is very important to calculate the correct salary of the employee.
  • Maintains the company’s reputation- Employees are the company’s representatives. Paying them rightly and in time is very important. It builds a positive reputation of the company. If a company fails to reward the employees correctly, it can lead to both morale and compliance issues.

Conclusion
Payroll processing plays an important role in any organization. Formation of a payroll processing unit from scratch is a challenging task for any company.

DNA Growth is a global professional services provider specializing in Finance and Accounting Outsourcing, Payroll Support and outsourced Digital Marketing Solutions. Contact our Dubai Partner, Mr Kanav Minocha @ kanav.dubai@dnagrowth.com (or alternatively feel free to WhatsApp on +971 56149 8070) to understand how we can help you with the same.

Payroll Processing : Dubai Perspective
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