Payroll Software in United Arab Emirates (UAE) | Payroll System

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Written by Global Payroll Team

Last updated April 27, 2026

Expert Reviewed

Payroll Software in the UAE

Mercans Payroll Software UAE is among the top solutions for efficient, compliant, and streamlined payroll management in the UAE. Designed specifically to support the practical requirements of payroll in the United Arab Emirates, our UAE Payroll Software helps organizations manage payroll processing accurately and in line with applicable labour, wage protection, and pension-related administration requirements.

Mercans Payroll Software UAE is a comprehensive, native SaaS solution that digitizes your payroll process with accuracy and ease. As a native global payroll SaaS covering 160 countries, it offers more than just a tool, it’s an enterprise-wide solution tailored to meet the needs of businesses of all sizes, from local entities to international conglomerates. With its scalable architecture and seamless module integration, this UAE Payroll Software provides an intuitive, user-friendly interface that enhances the overall experience, making payroll management both simple and efficient.

Trusted the world over

Supports MOHRE and WPS Requirements

Ministry of Human Resources & Emiratisation (UAE)

Mercans Payroll Software is designed to support payroll processes in line with the UAE Ministry of Human Resources & Emiratisation (MOHRE) framework, including Wage Protection System (WPS) related workflows for private-sector employers where applicable. This helps businesses manage payroll outputs, reporting files, and payroll records in a structured and compliant manner.

With Mercans, businesses can manage payroll processes with greater confidence under UAE labour law and related administrative requirements. Our payroll system supports workflows connected to MOHRE, wage protection, end-of-service benefit calculations, and pension or social insurance administration for eligible employee groups, helping employers maintain stronger payroll control across the United Arab Emirates.

Why Choose Mercans

Native SaaS and Payroll platform
GDPR certified, SOC 1 & SOC 2 Compliant
Suitable for enterprise businesses
Supports Multiple Currencies
Global presence and multi-country payroll capabilities
Trusted by fortune global 500 and multinationals
More than 100 inbound and outbound integrations are available today
Manage All Employment Types – Employees, Freelancers, Contractors, Expats
ISO 20000 & ISO 27001 Certified
OWASP ASVS 3.0 Compliant

UAE Payroll Software Modules

Mercans Payroll Software offers managers and employees in the UAE a powerful and intuitive online portal designed to streamline and enhance HR and payroll activities.

Our advanced software modules are equipped with state-of-the-art functionality to ensure efficiency, compliance, and a superior user experience. Here’s how we empower your team:

Manager Self Service

Empowers managers in the UAE to efficiently manage HR tasks such as approvals, performance tracking, and employee management directly from the platform, simplifying administrative processes.

Employee Help Desk

Offers a centralized support system for UAE-based employees to address payroll and HR-related queries, ensuring quick resolution and improved satisfaction.

Data Exchange

Facilitates seamless integration with other systems and platforms in the UAE through robust data exchange capabilities, streamlining data management and reducing errors.

eDrive and Workflows

Automates and streamlines HR processes in the UAE with configurable workflows and document management, improving efficiency and supporting compliance with local requirements.

Time & Attendance

Accurately tracks employee work hours, attendance, and productivity, integrating seamlessly with payroll calculations to support precise and timely payments in the UAE.

Leave Management

Efficiently manages various types of employee leave, including annual leave, sick leave, and other absences, with automated approval workflows and accurate tracking, tailored to UAE labour law.

Loans & Expenses

Handles employee loans and expense claims with accuracy, ensuring seamless processing and integration with payroll for effective financial management in the UAE.

Mercans UAE Payroll Software Features

Payroll Processing

Manage salary processing, including bonuses, allowances, and deductions, while integrating with absence management and handling all aspects of payroll, from proration to termination processing. Generate payslips and process payments through various methods, including EFT and international transfers.

Statutory Compliance

Support compliance with UAE payroll-related requirements by handling pension and social insurance calculations for eligible employee groups, including GPSSA, ADRPBF, SSSF, and GCC Insurance Protection Extension (IPE) workflows where applicable.

Statutory Reporting

Generate payroll outputs and statutory reports, including GPSSA, ADRPBF, SSSF, IPE-related reporting, and Wage Protection System (WPS) salary files where applicable, helping employers manage reporting obligations more efficiently.

Loan Tracking

Effortlessly manage employee loans with automated disbursal and recovery, including monthly salary deductions and manual repayments, to reward employee loyalty while maintaining accurate financial records.

Social Security and Pension Administration

In the UAE, payroll-related pension and social insurance administration depends on the employee category and location. Pension and social insurance obligations commonly apply to eligible UAE nationals and, through GCC protection extension arrangements, to certain GCC nationals working in the UAE. Employers need to apply the correct fund and rules based on the employee’s status and the relevant authority.

For organizations based in the UAE with employees from other GCC states, it is important to apply the pension or social insurance rules of the employee’s home country under the Insurance Protection Extension framework where applicable, to support accurate payroll calculations and reporting.

Configuring Social Security in Mercans Payroll

When setting up an employee in Mercans Payroll SaaS UAE, specify their nationality and the relevant pension or social insurance profile where applicable. Mercans UAE Payroll software can then display the relevant options based on the employee’s status in the social security settings.

Here are the social security schemes supported in Mercans Payroll for GCC member states:

Authority	Employee Contribution	Employer Contribution	Government Contribution / Subsidy	Applicable For	Notes
General Pension and Social Security Authority	11.00%	15.00%	2.50% subsidy may apply for eligible private-sector UAE nationals with contribution account salary below AED 20,000	UAE nationals, except Abu Dhabi employees covered by Abu Dhabi pension rules	Applies under the UAE federal pension framework. Contributions are generally calculated on the contribution account salary.
Abu Dhabi Pension Fund	11.00%	15.00%	May vary by Abu Dhabi pension rules and employee category	UAE nationals working in Abu Dhabi entities covered by Abu Dhabi pension rules	Use Abu Dhabi Pension Fund rules for covered Abu Dhabi employees rather than the federal GPSSA table.
GCC Social Insurance Extension System	Based on employee’s home-country pension law	Based on employee’s home-country pension law	Not applicable unless provided by the home-country law	GCC nationals working in the UAE	For Saudi, Bahraini, Omani, Kuwaiti and Qatari nationals working in the UAE, contributions are generally applied under the GCC employee’s home-country social insurance scheme, not UAE GPSSA rates. (gpssa.gov.ae)

Mercans Payroll supports the administration of these pension and social insurance rules, helping organizations manage payroll across the UAE and GCC with greater accuracy and control.

Benefits Tracking

Track and manage essential employee benefits to boost satisfaction and ensure accurate benefits administration.

Expense Management

Use a mobile app for employee expense submission, approval, and reimbursement, with integrated accounting analytics and proof collection.

Attendance Calculation

Track and calculate employee attendance accurately, integrating directly with payroll systems.

Vacation and In-Advance Salary

Manage vacation and in-advance salary payments efficiently, integrating seamlessly with payroll.

Full and Final Settlement

Process full and final settlements accurately for employees departing from the company.

Reimbursement Management

Manage employee reimbursements efficiently, with seamless integration into payroll systems

Air Ticket Allowance

Administer air ticket allowances for employees, ensuring adherence to company policies.

Gratuity

Accurately calculate and manage employee end-of-service benefit or alternative scheme related payroll values in line with applicable requirements.

Salary Advance Payment

Facilitate salary advances for employees with automated processing to enhance convenience.

Access to Timesheet Reports

Access and review timesheet reports to ensure accurate payroll processing and track employee attendance.

API & Webhooks

Integrate seamlessly with your business software ecosystem, ensuring cyclic data push and pull through APIs and webhooks.

Accounting Integration

Transfer accounting information smoothly to essential platforms like QuickBooks and Tally with one-tap integration.

Automatic Compliance Update

Stay aligned with regulatory changes through updates to the system.

Extensive Reconciliation Tools

Use comprehensive reconciliation tools for thorough review of payroll and financial records.

Payroll Approval Workflow

Implement structured approval workflows to streamline payroll approval and ensure accuracy.

Generate Password-Protected Payslips

Create secure, password-protected payslips to protect sensitive payroll information.

Error-Free Payroll Processing

Utilize advanced tools to support highly accurate payroll processing.

Automated Payroll Processing

Support timely payroll runs with automated payroll processing.

Automated Salary Computation

Automate salary calculations to minimize manual errors and streamline payroll processing.

Payslip Generation

Automatically generate and distribute payslips to enhance employee access to payroll information.

Payroll Reports

Generate detailed payroll reports for effective analysis and management of payroll data.

Manage Allowances and Overlaps

Handle various allowances and overlaps seamlessly to ensure correct payroll calculations.

Overtime Calculation

Accurately calculate and manage overtime pay, including processing paid overtime requests.

Multi-Currency Payroll

Support payroll processing in multiple currencies to accommodate international teams.

Multiple Pay Periods

Configure and manage various pay periods to suit organizational and employee needs.

Multiple Languages

Provide payroll processing in multiple languages to support a diverse workforce.

Employee’s Financial Reports

Generate detailed financial reports for employees to provide transparency and track earnings.

Payroll for Multiple Legal Entities

Effortlessly manage payroll across multiple companies from a single account, simplifying operations as your business grows.

Unlimited Salary Components

Include an unlimited number of salary components to customize payroll according to organizational requirements.

Employee Related

Benefits Tracking

Track and manage essential employee benefits to boost satisfaction and ensure accurate benefits administration.

Expense Management

Use a mobile app for employee expense submission, approval, and reimbursement, with integrated accounting analytics and proof collection.

Attendance Calculation

Track and calculate employee attendance accurately, integrating directly with payroll systems.

Vacation and In-Advance Salary

Manage vacation and in-advance salary payments efficiently, integrating seamlessly with payroll.

Full and Final Settlement

Process full and final settlements accurately for employees departing from the company.

Reimbursement Management

Manage employee reimbursements efficiently, with seamless integration into payroll systems

Air Ticket Allowance

Administer air ticket allowances for employees, ensuring adherence to company policies.

Gratuity

Accurately calculate and manage employee end-of-service benefit or alternative scheme related payroll values in line with applicable requirements.

Salary Advance Payment

Facilitate salary advances for employees with automated processing to enhance convenience.

Access to Timesheet Reports

Access and review timesheet reports to ensure accurate payroll processing and track employee attendance.

Infrastructure Related

API & Webhooks

Integrate seamlessly with your business software ecosystem, ensuring cyclic data push and pull through APIs and webhooks.

Accounting Integration

Transfer accounting information smoothly to essential platforms like QuickBooks and Tally with one-tap integration.

Automatic Compliance Update

Stay aligned with regulatory changes through updates to the system.

Extensive Reconciliation Tools

Use comprehensive reconciliation tools for thorough review of payroll and financial records.

Payroll Approval Workflow

Implement structured approval workflows to streamline payroll approval and ensure accuracy.

Generate Password-Protected Payslips

Create secure, password-protected payslips to protect sensitive payroll information.

Error-Free Payroll Processing

Utilize advanced tools to support highly accurate payroll processing.

Automated Payroll Processing

Support timely payroll runs with automated payroll processing.

Automated Salary Computation

Automate salary calculations to minimize manual errors and streamline payroll processing.

System Related

Payslip Generation

Automatically generate and distribute payslips to enhance employee access to payroll information.

Payroll Reports

Generate detailed payroll reports for effective analysis and management of payroll data.

Manage Allowances and Overlaps

Handle various allowances and overlaps seamlessly to ensure correct payroll calculations.

Overtime Calculation

Accurately calculate and manage overtime pay, including processing paid overtime requests.

Multi-Currency Payroll

Support payroll processing in multiple currencies to accommodate international teams.

Multiple Pay Periods

Configure and manage various pay periods to suit organizational and employee needs.

Multiple Languages

Provide payroll processing in multiple languages to support a diverse workforce.

Employee’s Financial Reports

Generate detailed financial reports for employees to provide transparency and track earnings.

Payroll for Multiple Legal Entities

Effortlessly manage payroll across multiple companies from a single account, simplifying operations as your business grows.

Unlimited Salary Components

Include an unlimited number of salary components to customize payroll according to organizational requirements.

Payroll Implementation

Mercans’ standard payroll implementation process for the UAE is designed to ensure a seamless transition to our payroll system. Tailored to meet each client’s specific needs, this process includes customized timelines and deliverables based on factors like complexity, data availability, and the number of parallel runs required. Here’s an overview of the key steps involved:

Implementation Planning

Assign resources and define roles for the project.
Conduct a kick-off meeting to outline objectives and confirm scope.
Develop a detailed implementation calendar and plan.
Provide a welcome package with project details and contacts.
Schedule regular update calls or emails to monitor progress.
Obtain sign-off on the project scope.

Requirements Gathering

Hold workshops to understand and document client needs.
Complete business blueprinting to detail requirements and perform a gap analysis.
Define and document any customization needs.
Obtain sign-off on requirements to ensure they meet client expectations.
Establish a comprehensive list of payroll-specific requirements.

System Configuration

Configure the payroll system to meet UAE requirements.
Customize the wage type catalog for relevant pay components.
Set up data dictionaries and interfaces for seamless data integration.
Adapt reports to comply with UAE regulatory standards.
Implement Employee Self-Service (ESS) and Manager Self-Service (MSS) features.

Data Migration

Migrate employee and payroll master data, ensuring accuracy.
Obtain sign-off on migrated data to confirm correctness.
Verify data integrity and completeness before proceeding.

Test Payroll Run

Run simulation payrolls to validate system configurations.
Perform parallel runs with existing systems and complete test run sign-offs.
Conduct end-to-end testing and user acceptance testing (UAT), addressing any issues.

Payroll Management Transition & Sign-off

Develop a transition plan for live payroll and provide user training.
Implement a hypercare plan for post-go-live support and an escalation plan for critical issues.
Create a fallback plan for potential disruptions and complete a go-live checklist for final sign-off.

Payroll Integration

Mercans distinguishes itself with extensive reach and robust integration capabilities. Operating across 160 countries, Mercans supports payroll, HR, reporting, and authority-related workflows that help organizations manage compliance and operational efficiency.

Recognized Trust Sources

UAE Ministry of Human Resources & Emiratisation and Pension Authorities

These certifications and compliance-oriented controls affirm Mercans’ dedication to maintaining high standards of operational excellence and payroll governance.

Integration with HCM/ HRMS/ Workforce management platforms

Through the Employee Self Service (ESS) feature, employees can manage their payroll tasks directly, such as submitting worked hours or declarations. Approved entries are instantly processed within the payroll system, reducing errors and enhancing productivity for both employees and HR administrators.

Custom Integrations

Mercans also offers tailored API integrations for various industries, ensuring that our payroll software meets specific business needs. Our custom integrations include:

Custom API Integrations

Designed for diverse sectors such as hospitality, transport, sports, construction, and healthcare.

Xero Integration

Connects seamlessly with other applications, reducing manual data entry and minimizing errors. Recent enhancements have added new integrations to boost connectivity and efficiency.

Payroll Reports – Standard, Statutory and Year-End Reports

Mercans’ payroll software for the UAE is designed to generate a comprehensive range of reports that support standard and statutory payroll requirements. These reports are essential for recording, reviewing, and analyzing employee costs and meeting compliance obligations related to wage protection, end-of-service benefits, and pension or social insurance administration where applicable. Below is an overview of the standard set of payroll reports available:

Mercans Standard Reports

Payroll Register

Summarizes net salaries and payroll details, including basic salary, allowances, deductions, and employee positional data.

Payroll Reconciliation Report

Compares net pay between months to identify and analyze discrepancies.

Bank Transfer File

Details employee bank information and net pay, indicating payment methods such as direct transfers and cheques.

Loan Outstanding Report

Shows the outstanding balance of employee loans, including amounts, installments, and repayment status.

Loan Deduction List

Summarizes monthly loan amortizations deducted from employees’ salaries.

Headcount Reconciliation Report

Reflects changes in employee headcount from the previous month, noting new hires, separations, and other status changes.

End of Service Gratuity Accrual Register

Details the gratuity or related end-of-service amount payable at month-end, including accruals and balances.

Vacation Accrual Register

Tracks leave balances, accruals, and closing balances for each employee.

GPSSA Register

Provides details on GPSSA related contributions, including employee and employer portions where applicable.

Air Ticket Accrual Register

Manages accruals for air tickets, showing details such as ticket fares and accrued amounts.

Finance Reports

Includes key reports like Payroll JV, Gratuity Accrual, GPSSA, Vacation Accrual, and Loan Outstanding Reports, crucial for accounting entries and financial documentation.

Automated Retroactive Calculations

Automatically adjust payroll for previous periods to ensure accurate payments when changes or corrections are made, eliminating manual adjustments and reducing errors.

Drive Efficiency

Streamline payroll tasks and processes to save time and resources, allowing HR teams to focus on more strategic activities.

Highly Configurable

Customize the payroll system to fit specific organizational needs and preferences, adapting to various business requirements and local regulations.

Increase Accuracy

Minimize errors through automated calculations and data integration, ensuring precise payroll processing and reducing the likelihood of costly mistakes.

Enhance Employee Experience

Provide employees with easy access to their payroll information, self-service options, and clear, timely payslips, improving overall satisfaction and engagement.

Decrease Compliance Risk

Stay up-to-date with changing regulations and compliance requirements, reducing the risk of legal issues and penalties associated with payroll management.

Simplify Payroll Processing

Streamline complex payroll tasks with user-friendly features and automation, making payroll management more straightforward and less time-consuming.

More Flexibility and Control

Gain greater control over payroll operations with flexible configuration options, enabling quick adjustments and enhancements to meet evolving business needs.

Leverage HCM Suite

Integrate seamlessly with Human Capital Management (HCM) systems to synchronize HR data and streamline workflows, improving overall efficiency and data accuracy.

Reduce Total Cost of Ownership (TCO)

Lower long-term costs by investing in a comprehensive payroll software solution that reduces manual work, minimizes errors, and consolidates payroll processes into one platform.

Core Features

Automated Retroactive Calculations

Automatically adjust payroll for previous periods to ensure accurate payments when changes or corrections are made, eliminating manual adjustments and reducing errors.

Drive Efficiency

Streamline payroll tasks and processes to save time and resources, allowing HR teams to focus on more strategic activities.

Highly Configurable

Customize the payroll system to fit specific organizational needs and preferences, adapting to various business requirements and local regulations.

Increase Accuracy

Minimize errors through automated calculations and data integration, ensuring precise payroll processing and reducing the likelihood of costly mistakes.

Enhance Employee Experience

Provide employees with easy access to their payroll information, self-service options, and clear, timely payslips, improving overall satisfaction and engagement.

Decrease Compliance Risk

Stay up-to-date with changing regulations and compliance requirements, reducing the risk of legal issues and penalties associated with payroll management.

Additional Key Features

Simplify Payroll Processing

Streamline complex payroll tasks with user-friendly features and automation, making payroll management more straightforward and less time-consuming.

More Flexibility and Control

Gain greater control over payroll operations with flexible configuration options, enabling quick adjustments and enhancements to meet evolving business needs.

Leverage HCM Suite

Integrate seamlessly with Human Capital Management (HCM) systems to synchronize HR data and streamline workflows, improving overall efficiency and data accuracy.

Reduce Total Cost of Ownership (TCO)

Lower long-term costs by investing in a comprehensive payroll software solution that reduces manual work, minimizes errors, and consolidates payroll processes into one platform.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

How does payroll software integrate with the Wage Protection System WPS, and what are the requirements for generating Salary Information Files SIF?

Mercans payroll software integrates directly with the UAE Wage Protection System WPS to ensure secure and compliant salary payments. The platform automatically generates Salary Information Files SIF in the required format for submission to the Ministry of Human Resources and Emiratisation MOHRE, reducing errors and saving time.

What calculations must the software support such as gratuity end-of-service benefits, social security for Emirati and GCC nationals, and overtime or allowance computations?

Mercans supports accurate calculation of end-of-service benefits, gratuity payments, overtime, allowances, and social security contributions for Emirati and GCC nationals, ensuring compliance with UAE labor law and company policies.

What compliance obligations such as record retention, timely payment deadlines, bilingual payslips, and free-zone versus mainland rules must the platform adhere to?

Mercans ensures adherence to UAE compliance obligations including secure record retention, timely salary payments, bilingual payslip generation, and handling both free-zone and mainland payroll requirements with full regulatory alignment.

Does the system offer employee self-service features like digital payslips and leave tracking, alongside mobile access and Arabic-English support?

Mercans provides secure self-service portals accessible via mobile devices, enabling employees to view payslips, track leave balances, and access payroll information in both Arabic and English, enhancing transparency and convenience.

Can the payroll platform handle multi-entity or free-zone setups and provide audit-ready reporting to streamline MOHRE and regulatory compliance?

Mercans supports multi-entity and free-zone payroll structures, delivering comprehensive audit-ready reports to simplify compliance with MOHRE and other regulatory authorities while improving operational efficiency.