Key Benefits of Outsourcing Payroll in Dubai
Payroll outsourcing is when a business engages an external party to handle all its payroll-related activities. Outsourcing of payroll functions is generally done to reduce the internal operational costs related to payroll, enabling the business to devote more time and resources to focus on value-added and revenue generating tasks. Outsourcing of payroll activities is beneficial for all kinds of businesses, regardless of their size, but can be particularly advantageous for companies that are just starting-up or are entering the Dubai market for the first time. These companies are often very cost sensitive and will be facing a number of new employment and local legislative challenges.
Hiring an external payroll outsourcing company in Dubai to handle payroll activities gives you access to essential skills and knowledge at a much lower cost. It means a business can do away with the need to hire and train in-house payroll staff, buy an appropriate software package for payroll functions and remain constantly updated about complicated legislations.
Using a trusted, reliable and professional provider to process your payroll in Dubai will give you and your staff the reassurance and confidence that your payroll responsibilities are being properly and efficiently discharged. You can also be confident that all your obligations and responsibilities are being met in a timely and efficient manner, which will eliminate delays and administrative errors, as well as helping to avoid potential fines and penalties.
Key benefits of outsourcing payroll in Dubai
The key benefits of engaging a third party provider to manage and process your Dubai payroll are as follows:
- Cost savings – Running payroll in-house can be costly, particularly for some small companies, due to the need to engage a full time employee. Hiring a dedicated qualified payroll professional in the UAE comes with various obligations and costs related to monthly salary, visa, emirates ID and labour contract fees, mandatory medical insurance, ‘end of service gratuity’ (EOSG)/pension provisions, annual leave and overtime costs. Our fixed monthly fees tailored to your requirement will be far less costly.
- Reliability – Payroll errors don’t just frustrate your staff, but can cost you money. Late or incorrect submissions to government can lead to penalties and other serious issues.
- Compliance – Small businesses in particular can find it challenging keeping on top of the frequent and often complicated changes to local legislations. Staying updated involves being aware of any changes to UAE labour laws, data protection regulations and the Wages Protection System (WPS). An outsourced service will bring you highly experienced professionals who are up to date with the latest changes and are able to adapt quickly. By outsourcing, you can be secure in knowing you are compliant and your employees are paid correctly and on time.
- Efficiency – Operating a small or medium-sized business can be very cost sensitive and salaries typically represent a large proportion of company costs. Managing your payroll is key to managing your cash flow, which is of paramount importance to the overall running of your business. It means that when you do need to access information, much of it can be available at your fingertips, securely online. This knowledge is invaluable in maximising efficiencies and keeping your business profitable.
- Infrastructure – Quality payroll service providers will have access to the latest technology and HR software, which will enable them to process payroll efficiently without your business incurring the expense of a purchasing and maintaining an in-house system together with the attendant hardware.
- Security – Quality payroll service providers keep all data stored and protected on highly secure cloud-based servers. They often use encryption technology to ensure safety of all information.
- Confidentiality – Data kept on an in-house server can be in danger of being accessed by unauthorised persons. Outsourcing the payroll function will mitigate the risks of leakage of sensitive information, employees’ identities and potential misuse of company funds.
- Business focus – Leaving payroll to quality payroll service providers means spending less time in-house on complex payroll issues and more time on building sales and marketing strategies and improving workflow efficiencies.
- Access to specialised services – Many quality payroll service providers are able to offer other specialised services, such as human resources (HR) support, government liaison (PRO) services and other ancillary services. PRO services refer to all activities related to processing governmental documents and paperwork, such as visa applications, labour cards, and company trade licensing documentation and approvals.
How can Sovereign help?
Sovereign Corporate Services offers complete payroll management and processing services in the UAE, regardless of the size of the company, the number of employees, the complexities of the payroll or the location of the entity (mainland UAE or free zone). Sovereign Corporate Services is fully compliant with General Data and Security Regulations (GDPR) and provides the highest levels of Information and data security.
We are highly flexible; we can use the client’s in-house payroll software, if available, or we can use our own cloud-based payroll software, which is highly robust and extremely flexible. On a global scale, this software is currently used by more than 6,500 companies and processes more than 800,000 payslips on a monthly basis.
This software, which includes integrated HR Management and Leave Management systems, has a separate module that is specifically designed to cater for companies and achieve statutory compliance in the Middle East.
Sovereign can provide end-to-end payroll services that include:
- Issuance of monthly payslips, salary certificates and bank transfer letters
- Leave management for the employees in respect of holidays, absences and paid leave
- Issuance of No Objection Certificates (NOC) for employees
- Assistance with application and selection of suitable health/medical insurance
- Assistance with the set up of Wage Protection System (WPS)
- Calculation of End of Service Gratuity payment, in line with the UAE labour law.
In addition to payroll services, our in-house HR specialist can provide a complete guidance on the UAE labour law, employment contracts, recruitment of employees, preparation of staff handbooks, dismissal managements, redundancies, arrangement of visas, labour contracts and more. Please get in touch with us if you wish to know further about these services.