How does Zoho Payroll UAE handle WPS and annual leave settlement?

Zoho Payroll for the UAE is built around local rules. It can produce the salary information file needed for the Wage Protection System so your bank or exchange house can pay salaries, and it handles end-of-service gratuity and leave encashment as part of final settlement. Check the current help pages for your setup, and confirm leave and gratuity rules with your HR adviser.

Under the UAE Wage Protection System, mainland employers pay salaries through approved banks or exchange houses using a salary information file. Zoho Payroll generates this file from your monthly payroll with employee and employer IDs. You set up your WPS agent details once, then download the file each month and upload it to your bank or agent.

For annual leave, Zoho Payroll and Zoho People track leave balances. When an employee leaves, final settlement can include unused leave encashment, end-of-service gratuity based on service length and basic salary, and any deductions. Check that basic salary and allowances are split correctly, because gratuity is calculated on basic pay.

Free zone companies may follow different payment rules, so confirm whether WPS applies to you. Test a final settlement for a sample employee and compare it with a manual calculation before relying on it. Labour law details change, so check the current regulations as well as Zoho's help pages.

If you would rather have payroll set up and checked for you, Flowpeak Consulting can configure Zoho Payroll and People for the UAE, set up WPS details and test final settlements remotely with your HR team. We do not claim a local office, and all work is done online.

Written by Flowpeak, a Zoho implementation partner. Zoho pricing and features change, so confirm current details on the official Zoho site. Free checklists | Ask us a question