How Much Do Payroll Services Charge in Dubai?
Complete 2026 Pricing Guide with Transparent Breakdowns, Cost Comparisons, and Expert Insights for UAE Businesses
Table of Contents
- Introduction to Payroll Costs in Dubai
- Key Factors Influencing Payroll Service Charges
- Detailed Payroll Pricing Breakdown
- Payroll Pricing Models Explained
- In-House vs Outsourced: Cost Comparison
- Hidden Costs and Add-Ons to Consider
- Why Choose One Desk Solution for Payroll
- Cost-Saving Tips for Dubai Businesses
- FAQs on Dubai Payroll Costs
- Related Articles
Understanding Payroll Services in Dubai
Payroll management in Dubai involves far more than just salary calculations. It ensures compliance with UAE labor laws, Wage Protection System (WPS) requirements, and Ministry of Human Resources and Emiratisation (MOHRE) regulations. Professional providers like One Desk Solution handle everything from salary processing and payslip generation to end-of-service gratuities, leave tracking, and seamless integration with accounting systems.
Market Insight: Payroll services in Dubai vary widely in cost based on company size, service level, and provider expertise. One Desk Solution stands out as Dubai's leading provider for integrated VAT, tax, bookkeeping, audit, and payroll services, offering competitive pricing with full UAE compliance.
Businesses face significant risks from manual payroll errors, including penalties for late WPS filings and compliance violations. Outsourced services provide essential accuracy and efficiency, with providers like One Desk Solution offering 24/7 support and tailored packages suitable for startups to enterprises across Dubai and the wider UAE.
Key Factors Influencing Payroll Costs
1. Employee Count & Business Size
The number of employees is the primary cost driver. Most providers offer economies of scale, with per-employee rates decreasing as your team grows. Small businesses (1-10 employees) typically pay higher per-employee rates than enterprises with 200+ staff.
2. Payroll Complexity
Complex payroll structures with variable commissions, overtime, bonuses, allowances, or multi-emirate operations increase service fees. Basic salary-only structures keep costs lower.
3. Service Tier Selection
Basic plans cover essentials like WPS file generation and salary processing. Premium tiers include employee self-service portals, custom reporting, HR advisory, and integration with accounting software like QuickBooks or Xero.
4. Provider Expertise & Reputation
Established providers with expertise in VAT compliance and UAE regulations may command slight premiums but deliver long-term savings through accuracy and compliance assurance.
5. Additional Factors
• Payroll frequency (monthly, bi-monthly, weekly)
• Add-on services (visa processing, insurance, PRO services)
• Integration requirements with existing systems
• Contract length (annual contracts often receive discounts)
Detailed Payroll Pricing Breakdown
Payroll service costs in Dubai typically range from AED 20-120 per employee monthly, with flat fees for small firms starting at around AED 500. Below is a comprehensive breakdown based on business size:
| Number of Employees | Basic Service (AED/Month) | Premium Service (AED/Month) | Per Employee (AED) |
|---|---|---|---|
| 1-10 | 500-800 | 800-1,200 | 50-120 |
| 11-25 | 800-1,500 | 1,500-2,500 | 40-100 |
| 26-50 | 1,500-2,500 | 2,500-4,000 | 35-80 |
| 51-100 | 2,500-4,000 | 4,000-7,000 | 30-70 |
| 101-200 | 4,000-7,000 | 7,000-12,000 | 25-60 |
| 200+ | 7,000+ | 12,000+ | 20-50 |
Note: Initial setup fees typically range from AED 1,000-5,000, but are often waived for annual contracts. Market averages align at AED 25-40 per employee for standard payroll services. One Desk Solution offers transparent, all-inclusive pricing with no hidden fees.
Payroll Pricing Models Explained
Understanding different pricing models helps you select the most cost-effective option for your business:
| Model | Best For | Scalability | Predictability |
|---|---|---|---|
| Per-Employee | Growing firms with changing headcount | High | Medium |
| Tiered Flat-Rate | Stable teams with consistent size | Medium | High |
| Hybrid | Mid-sized businesses with some fluctuations | High | Medium |
Per-Employee Pricing
The most common model, where you pay a fixed rate per employee per month. Rates typically decrease as employee count increases. Ideal for businesses planning to grow.
Tiered Flat-Rate Pricing
A fixed monthly fee for a specific employee range (e.g., AED 1,500 for 1-25 employees). Offers cost predictability but may become expensive if you exceed the tier limit.
Hybrid Models
Combines a base fee with per-employee charges. For example: AED 500 base fee + AED 30 per employee. Provides flexibility for businesses with moderate fluctuations.
One Desk Solution customizes pricing models based on your specific needs, often integrating payroll with their comprehensive VAT and audit services for bundled savings.
In-House vs Outsourced: Complete Cost Comparison
Outsourcing payroll typically saves businesses 30-50% compared to maintaining an in-house team. Here's a detailed breakdown for a 50-employee company:
In-House Payroll Costs
For 50 employees, annual expenses include:
Staff & Benefits: AED 90,000-150,000+
Software Licenses: AED 20,000-40,000
Training & Certification: AED 10,000-20,000
Error & Penalty Risks: AED 15,000-30,000
Total Annual Cost: AED 135,000-240,000
Outsourced to One Desk Solution
Same 50 employees, comprehensive service:
Service Fee: AED 30,000-60,000/year
Software: Included
Training: Included
Error Risk Management: AED 1,000-3,000
Total Annual Cost: AED 31,000-63,000
| Component | In-House (AED/Year, 50 Employees) | Outsourced (AED/Year) | Savings |
|---|---|---|---|
| Staff & Benefits | 90,000-150,000 | 0 | Up to 150,000 |
| Software | 20,000-40,000 | Included | Up to 40,000 |
| Training | 10,000-20,000 | 0 | Up to 20,000 |
| Service Fee | 0 | 30,000-60,000 | N/A |
| Error Risks | 15,000-30,000 | 1,000-3,000 | Up to 27,000 |
| Total | 135,000-240,000 | 31,000-63,000 | 72,000-177,000 |
As demonstrated, outsourcing with providers like One Desk Solution not only reduces direct costs but also minimizes compliance risks and allows your team to focus on core business activities.
Why Choose One Desk Solution for Payroll Services
As Dubai's leading integrated business solutions provider, One Desk Solution offers distinct advantages:
1. Comprehensive Service Integration
We seamlessly integrate payroll with VAT registration/filing, corporate tax, bookkeeping, and audit services, creating efficiency and cost savings through bundling.
2. UAE Compliance Expertise
Our team stays current with all MOHRE, WPS, and UAE labor law requirements, ensuring your business remains fully compliant and penalty-free.
3. Scalable Solutions
From JAFZA startups to multinational enterprises, we tailor services to your growth stage and specific needs.
4. 24/7 Support & Technology
Access to dedicated account managers, self-service portals, and round-the-clock support for urgent payroll matters.
5. Cost Transparency
No hidden fees, flexible pricing models, and bundled discounts when combining multiple services.
Cost-Saving Tips for Dubai Businesses
1. Negotiate Annual Contracts
Commit to annual service agreements for 15-25% discounts compared to month-to-month arrangements.
2. Bundle Services
Combine payroll with bookkeeping, VAT filing, or corporate tax services for package discounts.
3. Standardize Processes
Implement consistent payroll cycles, approval workflows, and data formats to reduce processing time and costs.
4. Utilize Self-Service Portals
Encourage employees to access digital payslips and update personal details online, reducing administrative workload.
5. Plan for Scalability
Choose a provider and pricing model that accommodates growth without excessive cost increases. Consider international expansion needs if applicable.
6. Regular Audits
Conduct quarterly reviews of payroll reports to identify discrepancies early and avoid costly corrections.
