Module: PYAE | Molga: 99 | Currency: AED | Group: GCC
Includes: 3 case studies (Expat engineer, UAE National, senior manager) | EOSB | WPS | GPSSA | No income tax
🧭 The Gross-to-Net Pipeline
Gross Pay (/101) → GPSSA Deduction (nationals only) → EOSB Provision → NET PAY (/560)
UAE has no personal income tax. The pipeline is simpler than most countries: cumulate all earnings into
/101, deduct GPSSA for UAE nationals, and arrive at /560. Expats: Net = Gross.📌 UAE Payroll Configuration Anchors
- No income tax on employment income (zero TDS)
- GPSSA: UAE/GCC nationals only — 5% EE + 12.5% ER (private sector)
- EOSB (End of Service Benefit): 21 days/year first 5 yrs; 30 days/year thereafter (UAE Labour Law Federal Decree 33/2021)
- WPS (Wages Protection System): mandatory bank transfer via MOHRE-approved channels
- Pay frequency: Monthly
- Probation: max 6 months; no EOSB during probation
👥 Case Studies — Employee Profiles
Parameter | Case A: Ravi Sharma (Expat Engineer) | Case B: Ahmed Al Mansoori (UAE National) | Case C: Sarah Mitchell (Senior Manager) |
Nationality | Indian (Expat) | UAE National | British (Expat) |
Company | Skyline Contractors LLC | Emirates Facilities Co. | Gulf Advisory Group |
Monthly Salary | AED 15,000 | AED 18,000 | AED 45,000 |
Tax | Zero | Zero | Zero |
GPSSA | Not applicable | 5% EE + 12.5% ER | Not applicable |
EOSB | Accrues per Labour Law | Accrues per Labour Law | Accrues per Labour Law |
🏗️ Step 1 — Salary Structure & Wage Types
Case A — Ravi Sharma (Expat, AED 15,000/month)
Component | WT Code | Monthly (AED) | Notes |
Basic Salary | AE01 | 9,000 | PF base (if GPSSA applicable); EOSB base |
Housing Allowance | AE10 | 3,600 | 40% of basic — standard UAE structure |
Transport Allowance | AE20 | 1,500 | Flat monthly |
Other Allowance | AE30 | 900 | Special/flex component |
GROSS /101 | ㅤ | 15,000 | Net = Gross (no tax, no social ins for expat) |
Case B — Ahmed Al Mansoori (UAE National, AED 18,000/month)
Component | WT | Monthly (AED) | Notes |
Basic Salary | AE01 | 12,000 | GPSSA base (basic only) |
Housing Allowance | AE10 | 4,000 | Not in GPSSA base |
Transport Allowance | AE20 | 1,500 | Not in GPSSA base |
Other Allowance | AE30 | 500 | Not in GPSSA base |
GROSS /101 | ㅤ | 18,000 | ㅤ |
GPSSA EE 5% | /3G1 | -600 | Deducted from net |
NET PAY /560 | ㅤ | 17,400 | ㅤ |
Case C — Sarah Mitchell (Senior Manager, AED 45,000/month)
Component | WT | Monthly (AED) | Notes |
Basic Salary | AE01 | 22,500 | EOSB base |
Housing Allowance | AE10 | 10,000 | ㅤ |
Transport Allowance | AE20 | 2,500 | ㅤ |
Special Allowance | AE30 | 7,000 | ㅤ |
Car Allowance | AE40 | 3,000 | ㅤ |
GROSS /101 | ㅤ | 45,000 | Net = Gross (expat) |
🔢 Step 2 — GPSSA (UAE Nationals Only)
- GPSSA (General Pension and Social Security Authority): private sector nationals
- EE: 5% of basic salary →
/3G1
- ER: 12.5% of basic salary →
/3G2
- Base: basic salary only (AE01), not allowances
- PCR
UAGProutes based on IT0002 nationality field (AE = apply; others = skip)
Case B calculation: Basic AED 12,000 × 5% = AED 600 EE deduction; ER AED 1,500
🔢 Step 3 — EOSB Accrual (All Employees)
Formula (UAE Labour Law Art. 51):
- First 5 years: (Last Basic / 30) × 21 days × years
- Beyond 5 years: (Last Basic / 30) × 30 days × years
- Cap: 2 years total salary (Art. 52)
Scenario | Service | Basic | EOSB |
Case A — 3 years, dismissal | 3 yrs | AED 9,000 | AED 18,900 |
Case A — 7 years, dismissal | 7 yrs | AED 9,000 | First 5: AED 31,500 + Next 2: AED 18,000 = AED 49,500 |
Resignation < 1 year | <1 yr | Any | AED 0 |
🔢 Step 4 — Net Pay Summary
ㅤ | Ravi (Expat) | Ahmed (National) | Sarah (Expat) |
Gross /101 | AED 15,000 | AED 18,000 | AED 45,000 |
GPSSA EE /3G1 | 0 | −600 | 0 |
Income Tax | 0 | 0 | 0 |
Net /560 | AED 15,000 | AED 17,400 | AED 45,000 |
⚙️ Step 5 — Schema UAEM Touchpoints
BLOCK BEG— open Gross-to-Net block
PDT UAED— bring retro differences
DATES— read period boundaries
PCR UAGP— GPSSA nationality branch (AE vs non-AE)
PCR UAEO— EOSB calculation on termination
ACTIO UAIN— WPS payment file flag
🏷️ Key Wage Types
WT | Description | Payslip? |
AE01 | Basic Salary | ✅ |
AE10 | Housing Allowance | ✅ |
AE20 | Transport Allowance | ✅ |
/101 | Gross Cumulation | Internal |
/3G1 | GPSSA Employee (5%) | ✅ |
/3G2 | GPSSA Employer (12.5%) | Informational |
/3EO | EOSB Payment (FnF) | ✅ FnF only |
/560 | Net Pay | ✅ |
📅 Statutory Calendar
Activity | Deadline | SAP T-Code |
GPSSA Monthly Filing | End of month | PC00_M99_GPSSA |
WPS File Submission | Last day of salary month | PC00_M99_CDTA |
EOSB (on termination) | Within 14 days of last day | FnF off-cycle run |
SuccessLabs Academy | SAP ECP UAE Payroll (PYAE) | Gross-to-Net Playbook