Set up, staff and run compliant payroll in the Middle East.

A practical, source-linked payroll compliance reference for international companies entering the region: Wage Protection Systems, social insurance rates, end-of-service rules, provider comparisons, calculators and official legislation, across nine markets. Rules and rates reviewed for 2026.

9Markets covered
WPSWage-protection rules per country
2026Rates & resolutions current
30+Official source links
Reviewed with Middle East payroll practitioners Primary-source citations Nine jurisdiction guides Updated when material rules change
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What do you need to do?

Jump straight to the guide or tool for your task.

Why this matters now

2026 is the year payroll became an enforcement front line

Across the GCC, payroll shifted from a back-office cost to a live regulatory exposure. Authorities now audit salary data automatically, and penalties include fines, work-permit suspensions and blacklisting.

UAE · WPS

Salaries monitored from day one

Ministerial Resolution No. 340 of 2026 (effective 1 June 2026) monitors wage payments from the due date, with an escalation ladder from work-permit suspension (day 5) to labour-dispute registration (day 16).

UAE · Emiratisation

Payroll data now polices quotas

Establishments with 50+ staff must lift Emirati headcount 1% each half-year (AED 10,000 per month per unfilled role). Some 20 to 49-employee firms in selected sectors also have Emirati-hiring obligations under different rules.

KSA · GOSI

Contribution rates stepping up

Under the new Social Insurance Law, rates for new-system employees rise 0.5% a year, reaching 23.5% from July 2026 and 25.5% by 2028. Transition management is genuinely complex.

GCC · Worker classification

Contractor status is under scrutiny

Misclassifying employees as independent contractors can create employment, immigration, tax and social-insurance exposure. Treatment depends on the actual working relationship and applicable local law.

UAE · Corporate Tax

Payroll records support your tax position

Payroll records, contracts and payment evidence help substantiate employment expenditure. Corporate-tax deductibility remains subject to the general expense rules and applicable limitations.

Egypt · Social insurance

Insurable wage ceiling raised

From 1 January 2026 the insurable wage band moved to EGP 2,700 to 16,700 per month, raising employer and employee contribution amounts across the board.

Interactive tool

WPS & compliance checker

Pick a country for its wage-protection rules, social-insurance rates, end-of-service formula, deadlines, penalties, an employer checklist and the official portals, tiered from a plain-language summary to the technical detail.

Country compliance snapshot

Select a market to generate its payroll obligations

Choose a country above to generate its payroll compliance snapshot.

Employer checklist

    Official portals & legislation

    Open the full country guide →

    Rates, resolutions and thresholds change frequently and vary by entity, free zone and employee nationality. This hub is a starting reference; confirm figures against the official source and, where stakes are high, local counsel before you file or pay. Last reviewed: 19 July 2026.
    Interactive tools

    Payroll calculators

    Indicative calculations based on the figures you enter and the assumptions shown: an end-of-service calculator using each country's published formula, and an employer-cost and social-insurance calculator across all nine markets.

    Two calculators: end-of-service & employer cost

    Indicative only, based on your inputs and the assumptions shown. Rates last reviewed: 19 July 2026.

    1 End-of-Service (Gratuity) Calculator
    Estimated end-of-service benefit
    0 AED

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    2 Employer Cost & Social-Insurance Calculator
    Total cost of employment
    0
    Employer pays
    0
    Employee deduction
    0
    Take-home (pre-tax)
    0

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    Indicative calculation based on the figures you enter and the assumptions shown; not a definitive or guaranteed figure. Gratuity is calculated on the stated basis (basic salary unless noted); income tax (Morocco, Egypt, Iraq) is not computed, so take-home is shown before income tax. Rates vary by entity, free zone, sector and nationality and are rounded to two decimals. Confirm against the official source, and seek specialist review for a leaver settlement or a hiring decision, before you file or pay.
    Interactive tool

    Compare payroll providers

    Filter the Middle East payroll landscape by model and by what you actually need. Sort by regional depth and compliance expertise to see who goes deep versus wide.

    Provider landscape

    Showing all providers

    All Regional specialist Global BPO / platform Employer of record Local processor / SaaS
    ProviderModelCoverageGCC depthCompliance expertiseWPS / Bank integrationEOSB automationBest for
    Ownership disclosure: this reference is published in association with a Middle East payroll provider (OPS, which appears in the table below). Scoring is descriptive, based on public information, and is not paid placement or an endorsement; ordering by regional depth is not a ranking. GCC depth and compliance expertise score regional coverage and local statutory handling, not company size or quality. WPS / Bank integration flags whether a provider can generate WPS files and integrate host-to-host with banks, which is rarer than file generation alone. Providers can request a correction via the contact page. Verify current coverage and pricing directly with each provider. Last reviewed: 19 July 2026.
    Country library

    Payroll at a glance, by market

    Open any country for the full guide: WPS rules, social insurance, end-of-service and official sources.

    Gulf Cooperation Council (GCC)
    Wider Middle East & North Africa
    People also ask

    Starting & staffing a business across the Middle East

    A selection of the questions founders and finance leads search most. Each country guide carries its full set of FAQs.

    How much does it cost to set up a company in Dubai in 2026?
    A single-founder free-zone setup with one visa runs roughly AED 22,000 to 32,000 in year one, renewing at AED 18,000 to 24,000. A Dubai mainland LLC is higher, about AED 50,000 to 70,000 in year one, mostly because of the mandatory Ejari office lease.
    How do I hire my first employee in the UAE?
    Register your establishment with MOHRE (establishment card + employer ID), open a corporate account with a WPS agent bank, issue a compliant contract, then process the work permit, Emirates ID, medical and health insurance. Most employees of MOHRE-regulated private-sector establishments must then be paid through WPS, subject to applicable exemptions and authority-specific rules.
    What is WPS and do I have to use it?
    The Wage Protection System routes salaries through MOHRE-approved banks so payments are tracked. It is mandatory. Since Ministerial Resolution 340 of 2026, late transfers are recorded from the due date and escalate to work-permit suspension.
    How much gratuity will I owe staff when they leave?
    For most private-sector staff: 21 days of basic pay per year for the first five years, 30 days per year after, capped at two years of wage, payable within 14 days of leaving. Use the End-of-Service calculator to model it.
    Can a foreigner own 100% of a company in Saudi Arabia?
    Yes. With a MISA investment licence, most activities allow 100% foreign ownership, with no Saudi partner or local sponsor required. This is a core Vision 2030 reform.
    What are GOSI contribution rates in 2026?
    For new-system employees the combined rate is 23.5% in 2026 (employee 10.75% / employer 12.75%), rising 0.5% a year to 25.5% by 2028. Pre-July-2024 employees stay at 21.5%. Non-Saudis attract only the employer occupational-hazard contribution.

    See the full FAQs on each country guide →

    Figures are indicative 2026 ranges compiled from public setup guides and official portals; actual cost, tax and quota outcomes depend on activity, location, entity and headcount. Confirm with the relevant authority before acting.
    Go to the source

    Legislative & source library

    Sources are grouped by type. Official ministries, wage-protection platforms and social-insurance bodies are the controlling references; professional analysis and commercial listings are provided for explanation and market context only, not as legal authority.

    How to read these sources. Primary law (statutes, decrees, resolutions) and authority guidance (ministries, tax and labour authorities) are controlling. Official portals cover registration and filing. Professional analysis (law firms, Big Four) explains but does not set the law. Commercial listings (formation agents, providers) are indicative only. Where possible, verify a specific rule against its underlying provision, not just an authority homepage.

    Official sources by country

    Secondary & commercial (explanation and context only)