We configure payroll in ERPNext and Frappe HR so monthly salaries, allowances, deductions and the WPS salary file come from one approved run.
ERPNext payroll in the UAE runs through the Frappe HR app using salary components, salary structures, structure assignments and payroll entries that create slips for a whole branch at once. ERPNext does not include a UAE WPS Salary Information File report as standard, so a custom report or script is built to export the SIF from approved slips with MOHRE employer and employee details.
Payroll in ERPNext is part of the Frappe HR app. It is built from a few linked records: salary components such as basic, housing and transport allowance; a salary structure that combines them with formulas; a salary structure assignment that sets each employee's base; and a payroll entry that creates salary slips for a whole branch or department at once. An ERPNext payroll UAE setup is mostly about getting those pieces right for your contracts.
UAE employers have a few extra needs. Salaries must be paid through the Wage Protection System, which means producing a Salary Information File (SIF) in the format your bank or exchange house expects. ERPNext does not include a UAE SIF report as standard, so we build one as a custom report or script that reads approved salary slips and outputs the file with the employer and employee MOHRE details.
Finance teams also want payroll to post cleanly to the ledger, with costs split by cost center or project. ERPNext does this through the payroll payable account and accounting dimensions. HR records, leave and attendance that feed payroll are covered on our ERPNext HRMS page.

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We set up a payroll workspace that shows the current cycle at a glance, so nothing gets paid before it is checked.
This is the sequence we set up for most UAE clients, with an approval before anything reaches the bank.
One shared database: every step updates stock, finance and reports in real time.
Each item below is standard ERPNext or Frappe HR functionality, adjusted to UAE contracts and your chart of accounts.
Earnings and deductions such as basic, housing, transport, phone, overtime, loan recovery and leave without pay, each mapped to a ledger account.
Formula-driven structures per grade or contract type, so a change to basic flows into dependent allowances automatically.
One-off bonuses, commissions, overtime and deductions entered for a payroll period without editing the structure.
Bulk creation and submission of salary slips by company, branch, department or designation, with a single accounting entry.
Gratuity rules with slabs based on years of service, used for exit settlements, plus a monthly provision journal we schedule.
Loan repayment schedules deducted through payroll and salary advances settled against slips.
Separate payroll runs per legal entity, with salaries in AED and reports consolidated at group level.
A custom report producing the SIF with employer and employee records, matched to your bank or agent's template.
Payroll sits between HR, finance and the bank. These links reduce manual re-keying.
We configure ERPNext to support these requirements. Confirm entitlements and calculations with your HR or legal advisor.
MOHRE requires private sector salaries to be paid through WPS using a SIF. We store employer IDs, routing codes and employee person codes so the file is complete each month.
Gratuity under Federal Decree-Law No. 33 of 2021 is based on basic salary and years of service. We configure gratuity rules and a monthly accrual so the liability is visible on the balance sheet.
Leave without pay and absence deductions follow your policy. We link them to attendance so deductions are traceable to source records.
Payroll costs post by cost center, which helps when preparing corporate tax workpapers. Confirm deductibility questions with your tax advisor.
General information, not tax or legal advice. Rules change; confirm current FTA, MOHRE and Ministry of Finance guidance with your advisor.
We run at least one parallel month before switching off the old system. These are the checks that catch most problems.
Compare WPS options and see how payroll fits with the rest of ERPNext.
We configure the system for the rules UAE businesses report against, and test it before go-live.
General information, not tax or legal advice. Confirm current requirements with the FTA, MOHRE or your advisor. See all UAE compliance guides.
On-site workshops in Dubai, Abu Dhabi and Sharjah, and remote or on-site delivery across the Northern Emirates and free zones.
Official sources and references
Facts on this page were checked against these sources in October 2026. Rules change, so confirm current requirements before acting.
Still have a question? Our consultants are happy to help.
Ask an ExpertNot as a standard report. We build a custom report or export that reads submitted salary slips and generates the SIF in the layout your bank or exchange house accepts, then test it with them before go-live.
Yes. You can create separate salary structures per grade or contract type, each with its own allowances, overtime rules and deductions, and assign them per employee.
Frappe HR has gratuity rules with service-based slabs that we set up for your contract types. We also schedule a monthly provision so the liability builds up in the accounts rather than appearing only at exit.
Yes. Salary components can carry accounting dimensions such as cost center or project, and timesheet-based costing is possible when employees log hours in ERPNext Projects.
Payroll entries create slips in bulk and handle several hundred employees per run without trouble on a properly sized server. Large or complex groups need careful structure design and testing.
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Dubai, United Arab Emirates