What goes on a UAE payslip
Reviewed by Mellow Editorial Team, HR & payroll content team
A UAE payslip must show the employee's gross pay, any allowances, deductions, and net pay — and for WPS-registered employers, it needs to align exactly with what is reported to the Wage Protection System each pay cycle.
What the law requires
Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) does not prescribe a single mandatory payslip template, but it does require employers to pay wages through the WPS and to keep accurate payroll records. In practice, your payslip must be consistent with the SIF (Salary Information File) you submit through WPS — every figure on the payslip should reconcile with what the bank or exchange house reports to the Ministry of Human Resources and Emiratisation (MoHRE).
Keep payroll records for a minimum of two years after the employment relationship ends. If a dispute reaches a labour court, the payslip is primary evidence.
Core components of a UAE payslip
Employee information
Name, employee ID, designation, department, and the pay period the payslip covers. Some employers also include the Emirates ID number and the WPS Person ID assigned when the employee was enrolled.
Basic wage
This is the single most important figure on the payslip. Basic wage drives end-of-service gratuity calculations, so it must be stated clearly and separately — not bundled into a gross figure. Misrepresenting or understating the basic wage is a common source of disputes at end of employment.
Allowances
Most UAE employment packages include one or more of the following:
- Housing allowance
- Transport allowance
- Mobile or communication allowance
- Education allowance (more common in certain sectors)
Each allowance should be listed as a separate line item with its own label and value. Lumping allowances together makes it harder to administer the contract and harder to defend payroll records in a dispute.
Gross pay
The sum of basic wage plus all allowances before any deductions. State this as a subtotal.
Deductions
Common deductions include:
- GPSSA pension contributions — applicable to UAE nationals and other GCC nationals enrolled in the Gulf Pension and Social Security Authority scheme. Expatriate employees do not contribute to GPSSA and should have no pension deduction on their payslip.
- Salary advances — if the employee has drawn an advance, the repayment instalment should appear here.
- Unpaid leave or absences — any days without pay in the period, calculated and shown explicitly.
- Court-ordered attachments — wage garnishments where applicable.
There is no personal income tax on salaries in the UAE, so no income tax deduction appears on any UAE payslip. This is one of the more significant differences from payslips in most other jurisdictions.
Net pay
Gross pay minus total deductions. This must match the amount actually transferred to the employee's bank account or salary card — again, consistency with the WPS SIF is essential.
Currency
UAE Dirhams (AED) is the standard, but if a contract denominates salary in another currency, show the AED equivalent at the agreed exchange rate.
How gratuity fits in
End-of-service gratuity does not typically appear as a monthly line item on a payslip — it is a liability that accrues and is paid on termination. However, some employers run a monthly provision entry in their accounts. Either way, employees often ask how their gratuity is building up, so it is worth knowing the statutory basis: 21 days of basic wage per completed year of service for the first five years, and 30 days per year thereafter, capped at two years' total basic pay under Federal Decree-Law No. 33/2021.
Because gratuity is calculated on basic wage alone, the separation between basic wage and allowances on the payslip matters well beyond the monthly pay run.
Annual leave and pay
Employees are entitled to 30 calendar days of annual leave after completing one year of service. If an employee takes leave during a pay period, the payslip should reflect whether leave days are paid at full salary (the standard position) and, where relevant, whether any leave encashment is being processed. Leave encashment — paying out accrued but untaken leave — is calculated on the employee's full salary, not basic wage alone, though employers should verify the specific contractual terms that apply.
Practical format notes
UAE payslips can be issued in Arabic, English, or both. Most multinational employers issue in English; a bilingual version reduces the risk of misunderstanding for Arabic-speaking employees. Digital payslips are widely accepted, but employees should be able to download or print a copy. Store the issued payslip alongside the corresponding WPS confirmation for that cycle — auditors and labour inspectors may request both together.
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