What are the most common payroll mistakes UAE employers make?

The most common mistake is delaying salary transfers through the Wage Protection System (WPS) past the deadline, even if the salary is eventually paid — the delay itself exposes the company to administrative penalties regardless of the reason. The second mistake is calculating end-of-service gratuity roughly, without reviewing the contract type (limited or unlimited term) and actual length of service, which causes significant discrepancies when an employee's service ends.

The third mistake is not separating the true cost of an employee (salary plus health insurance plus visa and renewal fees plus accruing end-of-service gratuity) from base salary alone during financial planning, which means the real cost of hiring catches the business owner by surprise. At RASEEKH, we help you build a payroll system that's WPS-compliant and accurately calculated from day one, with a clear view of each employee's true cost.