# Payroll



## CarlZA (Nov 12, 2008)

Can anyone explain how the payroll structure work in the UAE with relation to a company paying their employees?

Reason I am asking is because of the following:

I work for a reputable international company. But their pay cycles are just beyond imagination. In South Africa, payrolls are executed (largely) with military precision. If they say I pay on the 25th, I pay 12am when the 25th breaks. 

Since joining the UAE, I've been a bit irked with the fact that salary pay outs can vary with a day to three from the intended date.

The reason for me being irkish, is that in South Africa you can end up in big trouble for not paying an employee on the contractual date. Furthermore, if a pay date should fall on a weekend, the date is shifted to the last working day of that week. That plus the fact that I can not comprehend why, in the UAE with all its notions of aspiring to be world class, something rudimentary like being paid on time does not happen.

It's out of principle I ask - but how many people actually get paid on time here? Why when a company executes pay roll, the bank at the best possible time frame only pays out 18 hours later?


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## fcjb1970 (Apr 30, 2010)

CarlZA said:


> Can anyone explain how the payroll structure work in the UAE with relation to a company paying their employees?
> 
> Reason I am asking is because of the following:
> 
> ...


Are you seriously asking why something in the UAE is not working with military precision? I want to ask if have you ever seen a military parade here. I am just glad that the check actually gets in every month, expecting it to be the correct day seems to be pushing it.


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## ziokendo (Jan 7, 2012)

CarlZA said:


> Can anyone explain how the payroll structure work in the UAE with relation to a company paying their employees?


Obviously delays can be generated either on the originating (company) side, or on the recipient (employee) side.

First one would mean that payroll office was late to either produce or get authorized the payments (which should be submitted some days before the intended payout date): if you rule this out because you think your reputed international company has flawless operations also in the Dubai branch, the only other reason for differences are on the recipient bank side.

In my country for example payroll transfers are treated differently from regular wires as money travels with a specific "payment code" stating the payroll nature of the payment, ensuring timely delivery no matter what at the specified date (ie : last working day of the month).

My hypothesis is that UAE is a young country and the interbank flows couldn't be as timely and reliable. So I can only imagine that in UAE payroll money may travel as regular bank transfer and may encounter delays for any reason ("system is down Sir...").

One solution could be to try and open a bank account at the same bank that your employer is using to pay the salaries.


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## jackie606 (Feb 24, 2012)

usually the larger companies pay on 'say' the last work day of the month and therefore there is risk in variance of payday every month and usually if it falls on a weekend they pay on the previous Thursday. 

However the previous post has the answer the transfer time can vary greatly and some employers will limit the bank accounts they will pay salaries to, to try and circumvent this problem. 

My employer gives a choice of two... the largest international here... the big H and the largest UAE bank and thats it.... when you accept your job offer with us we insist on the opening of one of these two or no salary transfer.... not perfect but most employers realise the issues and try to minimise them... I would see who your corporate bank is and consider opening an account with them if you have not already.... if you have and you still have an issue... then speak to your employer in my view.. also what does your contract say, that usually states what you should be able to expect... if thats not happening then speak to your HR
Sorry there is no ideal answer!
Jackie


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