5 Benefits for Using Modern Payroll Software in UAE

The UAE is a center of business; as the number of employees grows, managing HR and payroll procedures becomes a real challenge. As per an Arabian Business report, some of the UAE’s key economic plans were announced, which included industrial strategies worth 300 billion USD to increase the sector’s contribution to national GDP to AED 300 billion.

However, using contemporary HR and payroll software solutions allows you to optimize your processes, providing valuable employee information. This paper will discuss the advantages of using modern payroll software that is integrated with an HRMS solution in the UAE.

Pillars of Efficient Workforce Management

In the ever-evolving world of business operations, two fundamental pillars play a pivotal role in shaping organizational success:

1. Human Resources (HR)
2. Payroll Systems

These interconnected frameworks are not mere administrative tools but strategic assets that drive efficiency, compliance, and employee satisfaction.

1- Defining HR Systems

Human Resource Systems, commonly known as HRMS (Human Resource Management Systems) or HRIS (Human Resource Information Systems), encompass a range of digital solutions designed to streamline and optimize HR processes.

2- Defining Payroll Systems

At the heart of financial management lies Payroll Systems, which is dedicated to the accurate calculation and timely disbursement of employee compensation.

Payroll in the UAE: A Simple 10 Steps Breakdown

Step 1: Get the Green Light

Begin your hiring voyage by catching a trade license. Visit the Department of Economic Development (DED) or your Free Zone Authority to submit your business plan and company details. Once approved, you’re officially good to go in the UAE job market.

Step 2: Team Up with MOHRE

Team up with the Ministry of Human Resources and Emiratisation (MOHRE). Hand over your trade license, contact info, and business specifics. In return, you’ll get a registration number, a crucial key to work permits and stay in line with local labor laws.

Step 3: Ink the Deal

Write a contract dealing with all the work details, including salary, number of hours, benefits you name it. Ensure that it complies with the UAE Labor Law and any applicable free zone rules. Sign it in both English and Arabic.

Step 4: Make it Legal

Snatch non-local work permits and residency visas for your employees. Collect the papers like passports, photos, contracts, and your license. Pays the fees and waits for the nod. They are legally employed in the UAE for two years.

Step 5: Clock In with Payroll

It is time to organize retail with a payroll structure. To keep it in the book, with proper documentation and timely payments. Whether you automate with software, get outside help, or hang on to spreadsheets, be sure you’re checking all the boxes of the UAE.

Step 6: Cash Talks

Take into account wages in the industry and location and calculate salaries. Check out the market for similar positions. Throw in benefits such as housing, transport, and insurance, staying true to the employment contract and UAE laws and regulations.

Step 7: Crunch the Numbers

Consider overtime for the extra hours. If it’s outside the normal workday, you pay 1.26 times the regular pay; for night shifts or Fridays, double this amount. Let’s not forget about lawful deductions, such as social security, locals’, or loan repayment. In the case of voluntary deductions, get written authorization.

Step 8: Pay Up

Stick to the agreed pay schedule, usually monthly. Use electronic funds transfer or direct deposit to send funds straight to employee bank accounts. Hand out payslips that include gross salary, bonuses, overtime, deductions, and the final take-home pay. Clear communication is key!

Step 9: Record the Deets

Keep your payroll records squeaky clean. Track all transactions, salaries, and payment dates. It’s not just to show that these records are your golden ticket during audits or checks from the Ministry of Human Resources and Emiratisation.

Step 10: Cross the WPS Bridge

The last stop was the Wage Protection System (WPS). Monthly, submit reports to the Central Bank, confirming you’ve paid your crew what they deserve. Hook up with a WPS agent (like a UAE bank) to make it official.

However, the above steps of the traditional payroll process demand time and financial resources. It becomes evident that a transformative solution is imperative. By embracing innovative technologies and refined methodologies, the HRMS  solution not only mitigates the burdens associated with payroll but also optimizes the allocation of resources. Let’s delve deep into it!

Modern Payroll Software in HRMS Solution: Why It’s Beneficial in the UAE

In the UAE, where businesses operate in a dynamic and complex environment, having an efficient and streamlined HR system is crucial. Integrating modern payroll software within an HRMS (Human Resource Management System) solution can offer significant advantages for both employers and employees. Here are some of the key benefits:

1. Increased Efficiency and Productivity:

• Automation: Modern payroll software automates manual tasks like data entry, calculations, and tax filing, freeing up HR professionals to focus on more strategic initiatives.
• Streamlined Processes: Integration with HRMS eliminates the need for manual data transfer between systems, saving time and cost and reducing errors.
• Improved Accuracy: Automated calculations and compliance checks minimize the risk of errors in payroll processing, ensuring timely and accurate payments.

2. Enhanced Employee Experience:

• Self-service Portal: Employees can access payslips, tax information, and leave balances through a secure self-service portal, improving transparency and convenience.
• Faster Payroll Processing: Timely and accurate payroll payments boost employee morale and satisfaction.
• Simplified Leave Management: Employees can easily request and track leave through the HRMS, reducing administrative burden and improving communication.

3. Cost Savings:

• Reduced Paperwork: Integrated systems eliminate the need for paper-based processes, saving on printing, storage, and administrative costs.
• Improved Compliance: Automated compliance features help avoid penalties and fines associated with payroll errors or non-compliance with UAE labor laws.
• Increased Scalability: Integrated HRMS and payroll software can easily accommodate growth, eliminating the need for additional software or manual processes.

4. Better Data Management and Analytics:

• Centralized Data: All employee data is stored in a single system, providing a holistic view of the workforce and facilitating data analysis.
• Improved Reporting: HR and finance teams can generate comprehensive reports on payroll, attendance, and other HR metrics, enabling informed decision-making.
• Talent Analytics: Integrated systems can provide insights into employee performance, engagement, and turnover, helping to identify and address potential issues.

5. Compliance with UAE Labor Laws:

• Built-in Compliance Features: Modern payroll software is designed to comply with the latest UAE labor laws, including overtime regulations, gratuity calculations, and social security contributions.
• Regular Updates: Software providers ensure regular updates to reflect changes in labor laws, reducing the risk of non-compliance.
• Peace of Mind: Employers can have peace of mind knowing that their payroll processes are compliant with UAE regulations.

Other Benefits:

• Improved Security: Integrated systems offer robust data security features, protecting sensitive employee information.
• Mobility: Cloud-based HRMS and payroll solutions allow for remote access and flexibility, especially in today’s hybrid work environment.
• Improved Communication: Integrated systems facilitate communication between HR, finance, and employees, leading to a more collaborative and efficient work environment.

Choosing the Right HRMS and Payroll Software

With a variety of HRMS and payroll software options available in the UAE, it’s important to choose a solution that meets your specific needs and budget. Consider factors like the size of your organization, industry, compliance requirements, and desired features.

1. Bayzat’s Comprehensive Payroll Solution

One standout solution that addresses these considerations is Bayzat, who offers a comprehensive payroll feature designed to streamline the payroll process. With Bayzat, companies can run payroll in minutes, providing a seamless and efficient experience. It’s imperative to refer to the Bayzat system smoothly to harness its capabilities thoroughly.

2. Emphasis on Compliance

In addition to the swift payroll processing, Bayzat strongly emphasizes compliance. The platform is tailored to enhance compliance with local regulations, ensuring that businesses stay in line with the ever-evolving legal landscape. This not only minimizes the risk of penalties but also contributes to a more secure and stable operational environment.

3. Elevating Employee Experience with Bayzat

Furthermore, Bayzat goes beyond mere payroll functionality. It aims to elevate the overall employee experience, a pivotal aspect of modern HRMS solutions. By incorporating Bayzat into your HRMS strategy, businesses in the UAE can significantly enhance the employee experience. This not only boosts satisfaction among staff but also contributes to increased productivity and retention.

4. Role of Artificial Intelligence (AI) in Efficiency

The future of HR and Payroll Systems is marked by integrating artificial intelligence (AI), machine learning, and analytics, empowering organizations to make data-driven decisions and adapt to dynamic market demands.

To delve deeper into the role of artificial intelligence (AI) in increasing efficiency, Bayzat has an insightful resource available at their AI Knowledge Hub. AI, when integrated into HRMS and payroll systems, can bring about transformative changes, automating repetitive tasks, reducing errors, and enabling data-driven decision-making.

5. Strategic Decisions for Businesses in the UAE

Selecting the right HRMS and payroll software is a strategic decision for businesses in the UAE. By implementing modern payroll software integrated within an HRMS solution, businesses in the UAE can gain a competitive edge by improving efficiency, boosting employee satisfaction, and reducing costs.

Are you ready? Take the first step towards HR and payroll transformation today. Contact Bayzat and book a consultation. And discover how their integrated HRMS platform works with its AI-powered knowledge hub.