Help · Payroll & WPS
UAE Payroll & WPS through HIBR
Monthly payroll workflow, SIF file generation, the 50% deduction cap, end-of-service gratuity, Emirates ID + visa expiry tracking. The operational reference for HIBR's payroll engine — UAE-built and FDL 33/2021 + MD 43/2022 compliant by default.
Updated May 2026
11 min read
For: Pro + Enterprise subscribers
Beta opens: October 2026
Tier note: WPS payroll is on Pro (up to 10 employees) and Enterprise (unlimited employees) tiers. Lite tier does not include WPS — for solo-operator businesses without UAE-sponsored employees. If you need to handle a single employee with WPS, upgrade to Pro.
Setting up payroll for the first time
Before running your first payroll cycle, complete the initial setup:
- MOHRE Employer ID — your 13-digit MOHRE establishment number. Available on your Tas'heel file or from your PRO (Public Relations Officer).
- WPS Agent Bank — pick the MOHRE-approved bank or exchange house that will route your salaries (Emirates NBD, FAB, ADCB, Mashreq, Wio, RAKBANK, or money exchange). Each has its own agent code (3 letters).
- Salary structure templates — basic salary + allowances (housing, transport, telecom, other) per employee category. HIBR ships with the UAE-standard 4-allowance template; customize as needed.
- Public holiday calendar — UAE Federal holidays auto-loaded. Adjust per your business if you provide additional emirate-specific holidays.
- Employee records — bulk-import via CSV from your previous system (HR file, Bayzat export, other UAE accounting tools payroll export, etc.) or add manually.
The monthly payroll workflow
1Lock the payroll period
Time: 5 minutes · Done by: HR-Payroll role or Admin
Around the 22nd-25th of each month, close the time-and-attendance period. HIBR captures attendance from: (a) the connected biometric/time-clock system if integrated, (b) imported timesheets, or (c) manual entry. Locking prevents further attendance changes for the period.
2Review payslips
Time: 10-30 minutes depending on headcount · Done by: HR-Payroll role
HIBR generates a payslip per employee covering:
- Basic salary (per salary structure)
- Allowances (housing, transport, telecom, other)
- Variable income (overtime, performance bonuses, ad-hoc)
- Deductions (loans, advances, telecom personal, accommodation, court-ordered)
- Net pay = gross - deductions
HIBR pre-validates each payslip against the 50% deduction cap per FDL 33/2021 Article 22. Any employee whose deductions would exceed 50% of monthly wages is flagged before SIF generation.
3Approve the payroll run
Time: 2 minutes · Done by: Owner or designated approver
Owner or designated approver clicks "Approve Payroll Run". HIBR locks the run with the approver name + timestamp + IP for audit trail. From this point the SIF can be generated; further payslip changes require a Reopen action.
4Generate the SIF
Time: 30 seconds · Automatic
HIBR generates the MOHRE-format SIF file with one EDR (Employer Detail Record) + one SCR (Salary Card Record) per employee. The SIF is pipe-delimited per the bank's specification.
HIBR pre-validates the SIF against the three most-common rejection codes:
- Code 304 — IBAN format invalid (UAE IBANs must be AE + 21 digits)
- Code 207 — Deduction exceeds 50% cap
- Code 119 — Period mismatch (payment date must be within 15 days of period-end per MD 43/2022 Article 5)
5Submit to your agent bank
Time: 5 minutes · Done by: HR-Payroll role
Download the .sif file and upload via your WPS agent bank's portal. Each bank has its own portal (e.g., Emirates NBD businessONLINE, FAB Online Banking, ADCB ProCash). The agent bank routes the salaries through the WPS to each employee's account.
Most agent banks process SIF submissions same-day if submitted before noon UAE time; otherwise next business day.
6Archive acknowledgement
Time: 1 minute · Automatic
The agent bank's acknowledgement confirms successful processing. Upload the acknowledgement to HIBR (or paste the reference number) — HIBR auto-archives it against the payroll run for the audit trail. Retention: 5 years per FDL 33/2021 record-keeping requirements; HIBR archives indefinitely on Enterprise tier.
The 50% deduction cap — how HIBR enforces it
FDL 33/2021 Article 22 limits total deductions to 50% of monthly wages. HIBR enforces this pre-SIF:
- Configure deduction categories per employee (loan repayment, accommodation, telecom personal, advance, etc.)
- HIBR sums all configured deductions per payroll cycle
- If total exceeds 50% of (basic + allowances), the system flags the employee + suggests cap-compliant adjustment
- Statutory exceptions (court-ordered deductions, certain end-of-service-indemnity-related items) bypass the 50% cap per Article 22 exception list
The 50% cap is a regulatory floor, not a target. Just because you can deduct up to 50% doesn't mean you should — many UAE labour disputes arise from accumulated deductions even within the cap. Document each deduction with the employee's signed acknowledgement; HIBR stores these against the employee record.
End-of-service gratuity (Article 51)
HIBR auto-accrues gratuity monthly per FDL 33/2021 Article 51:
- First 5 years: 21 days × (basic salary ÷ 30) per year of service
- Years 6+: 30 days × (basic salary ÷ 30) per year of service
- 2-year cap on total gratuity (cannot exceed 2 years of basic salary)
Accrual is calculated using basic salary only (not allowances) per Article 51. The accumulated provision sits on the balance sheet under "EOSB Provision" until offboarding event.
On offboarding, HIBR calculates the final gratuity payout:
- Employer termination — full gratuity per the formula
- Mutual consent — full gratuity
- Employee resignation (limited contract): 1/3 / 2/3 / full ladder per Cabinet Decision 1/2022 Article 31 based on tenure (under 1 year / 1-3 years / 3+ years)
- Employee resignation (unlimited contract): full gratuity if proper notice was served
- Article 44 disciplinary termination: no gratuity (with strict procedural requirements)
The Gratuity Calculator at /tools/gratuity-calculator/ lets you preview payout amounts in any scenario.
Emirates ID + visa expiry tracking
HIBR tracks employee documentation expiry:
- Emirates ID — renewal cycles 2/5/10 years depending on visa
- Visa / residence permit — typically 2-year cycle for employment visas
- MOHRE labour card — linked to the establishment-level MOHRE registration
- Passport — expiry tracked for visa renewal eligibility (6 months minimum validity for most renewals)
Alerts fire at D-60, D-30, D-7 before each expiry. Alerts route to: the HR-Payroll role + the employee themselves (email + in-app + WhatsApp on Pro+).
Why this matters: a lapsed Emirates ID blocks new visa renewals + employee bank-account standing + employee's ability to enter/exit the UAE. The 60-day alert is the operationally critical one — gives the PRO time to gather documents + start the renewal.
Cross-border payroll considerations
If you have employees in other GCC countries working for your UAE entity:
- UAE-resident with periodic remote work outside UAE — standard UAE WPS applies; the employee remains UAE-payrolled
- GCC-resident working for the UAE entity — the WPS-equivalent regime in their country of residence applies (Saudi Mudad, Bahrain LMRA, Oman PWPS, etc.). HIBR currently supports UAE WPS only.
- Non-GCC remote employee (full-time, no UAE entry) — typically not on UAE WPS. Contractor arrangement preferred; tax residency rules under FDL 47/2022 apply
HIBR's WPS engine handles UAE-resident payroll natively. Multi-country payroll is on the post-launch roadmap for 2027.
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