Business Growth

What is WPS in UAE

What is WPS in UAE? A Look at the Wages Protection System in UAE
What is WPS in UAE? A Look at the Wages Protection System in UAE 800 500 HRSG

The UAE government prioritizes protecting the rights of its workforce above all else. There are many policies currently in effect that ensure the region’s diverse and inclusive workforce is taken care of in terms of salaries, benefits, and other basic employee rights.

One big step in this regard is the implementation of the Wages Protection System (WPS) which is an electronic system that ensures the fair and timely payment of the salaries of the workers in the UAE.

The WPS system facilitates transparency and fosters trust between employers and employees by streamlining payroll processes and safeguarding workers’ rights.

This blog takes a closer look at the WPS in the UAE in detail. So, if you are new to the region and have no idea what WPS is in UAE and wish to learn more about the ins and outs of this innovative system, then keep on reading till the end.

  • An Introduction to the WPS in the UAE
  • Benefits of the WPS
  • The WPS Registration Process
  • How Does the Wages Protection System Work?
  • The WPS SIF Format
  • Rules for Naming Your SIF
  • Tips to Ensure Compliance with the WPS System in the UAE
  • Consequences of Non-Compliance

An Introduction to the WPS in the UAE

WPS Full Form

WPS stands for Wages Protection System. This innovative system was first launched in July 2009 as per the Ministerial Decree No 788. This initiative resulted from the combined efforts of the Ministry of Human Resources and Emiratisation (MoHRE) and the Central Bank of UAE.

This system was further reinforced in 2016 as per Decree No 739. In 2019, additional regulations and guidelines were introduced to increase the scope as well as the effectiveness of this system.

The WPS system refers to a digital salary transfer system that facilitates fair and timely payment of salaries for workers via financial institutions like exchange houses or banks.

WPS UAE protects the wage rights of employees by ensuring transparency as well as proper compensation every single time. WPS gives employers a single centralized database where they can upload the salaries, which MoHRE and Central Bank can validate to ensure fairness.

This system acts as an effective deterrent against fraudulent practices including intentional salary delays, illegal funding sources, and unfair compensation.

WPS mandates that every employer must pay salaries through accredited financial institutions, which ensures better monitoring of wage payments, thus promoting transparency.

This way, WPS prevents labor disputes by addressing every payment-related issue on time. For employers, this system automates payroll processes, saving time, and facilitating better record keeping, which helps in case of disputes.

Benefits of the WPS

WPS has a lot of benefits both for employers and employees. Here are some notable ones that you need to know:

  • It facilitates accurate tracking of fund movements like cash inflow and outflow, which eliminates fraudulent or illegal sources from your business.
  • WPS ensures transparency in terms of salary details by validating the data and forwarding it to a financial organization that disburses the funds.
  • This system ensures that salaries are paid on time, which safeguards employees’ finances and rights.
  • The timely salary payments give the workforce financial stability, which also reflects positively on their productivity.
  • WPS processes ensure your business shows compliance with the UAE labor laws.
  • The WPS streamlines the salary disbursal process by automating payroll tasks and eliminating manual errors, which saves time.
  • It gives employers hardcore proof that they can use to settle fraudulent non-payment cases.   

Wages Protection System in UAE

The WPS Registration Process

Every employer must register for the WPS if he or she wishes to show compliance with the labor laws and avoid potential penalties. However, before registering to this system, there are some requirements that you need to keep in mind.

  • The employer needs to have a corporate bank account registered within the UAE.
  • Your business must have a valid contract with a WPS agent, which can be a bank, exchange house, fintech, or any other financial institution. This agent will carry out the payment of the wages to the employees.
  • The wages must be paid according to the schedule stated in Ministerial Decree No. 788 as amended in Ministerial Decree No. 739 of 2016.
  • Every employer must pay at least 70% of all staff and at least 75% of wages or salaries.
  • Employers have to pay bank fees, provider charges, and other expenses related to payment costs or WPS.

After considering these requirements, you can proceed with the registration process. Employers can use MoHRE’s official website to register for the WPS. For registration, you have to add company details provided by the ministry.

After registration, you have to enter the following information into your portal:

  • Bank account details
  • List of employees
  • Details of the bank or agent you have a contract with 
  • The bank where the employees have an account
  • The dates on which salaries are to be paid
  • Payroll details

How Does the Wages Protection System Work?

Following are a few points that explain the working of the WPS:

  • Employer Registration

Businesses first need to register with MoHRE and an approved WPS agent.

  • Preparation of SIF

Employers then have to create SIF files in an approved format. These files must include employee information and salary details and must be submitted to a WPS-approved agent.  

  • Salary Check by MoHRE and Central Bank

After submission, the MoHRE and the Central Bank do a salary check. This ensures the data in SIF files is accurate and according to the WPS guidelines.  

  • Issuance of the Payment Order

After the WPS salary check and verification, the payment order is issued by the MoHRE and the Central bank to the WPS agent. In case of issues, the employers receive an email stating the errors that they need to remove.

  • Transfer of salary

After the issuance of the payment order, the WPS agents transfer the salary to the bank account of the employees. Some WPS agents issue a WPS payroll card which works like a regular debit card. This further facilitates better transfer and withdrawal of salaries   

The WPS SIF Format

SIFs are salary information files that are a must to ensure accurate payment processing and transfers. A SIF file is created in Excel using a very specific format. You need to add EDR or Employee Details Records to an SIF file. In this file, every employee has a row that starts with a separate EDR column.

Here is the general format of an SIF file:

A B C D E F G H I J
Employee details record Employee 14-digit labor card number Bank Routing Code Employee bank account number Start date of salary End date of salary Number of days for which salary is paid Fixed or basic salary of an employee Variable salary Number of

leave per year

You also need to add your company’s details or the Salary Control Records to the SIF file. Here are the main things you need to add:

  • Company name and ID
  • Payroll period (month and year)
  • Total number of employees
  • Total salary amount
  • Employee name and labor card number
  • Bank account or wage card number
  • Salary amount
  • Number of days worked
  • Overtime hours and the amount
  • Allowances and deductions

Rules for Naming Your SIF

Here are some important points you need to consider when naming your SIF file:

  • The name must be a combination of the MoHRE employer ID and the date and time.
  • The first 13 digits of the name must be the employer’s ID.
  • These digits should be followed by a date in the YYMMDD format.
  • The last six digits should represent the time in hhmmss format. 
  • All of these combined will give you the 25-digit SIF file name followed by .SIF extension.

Tips to Ensure Compliance with the WPS System in the UAE

Following a few things you can do to show compliance with the WPS system in the UAE:

  • Communicate the requirements, policies, and impacts of the WPS system clearly with your employees.
  • Ensure timely and accurate preparation and submission of SIF files.
  • Register with approved financial institutions.
  • Use payroll software to ensure accurate record-keeping.
  • Conduct regular audits to show WPS compliance.
  • Adopt transparent practices to reduce payment disputes.

Compliance with uae labor laws

Consequences of Non-Compliance

The failure to meet the WPS requirements opens you up to fines, penalties, and other legal complications. This is done to protect workers’ rights and prevent fraudulent practices. The fines for payment delays vary based on the size of your company.

Here are the consequences of non-compliance when it comes to WPS:

Companies with 100 or More Employees

  • If a company has 100 or more employees and they fail to pay the salary within 10 days of the due date, they will not get further work permits.
  • The second violation will result in complete work permit suspension. The third violation means the company must pay a fine of AED 5,000 per every unpaid worker.
  • Employers will not be able to issue other companies and the MoHRE can take actions against all other companies that they own.
  • The organization will be downgraded to a third category and the employees will be allowed to move.

Companies with less than 100 Employees

  • The first violation results in a warning from the MoHRE.
  • The work permit restrictions are applicable after the second violation.
  • The third violation will lead to fines and administrative closure in some cases.

Other Penalties

  • If the salaries are delayed for 30 days, the company will be referred to the juridical authorities by the MoHRE. 
  • Not paying for 60 days will lead to a fine of AED 5,000 per affected worker. The fine can also reach a maximum of AED 50,000 for multiple workers.
  • Providing incorrect information to evade salary payments will lead to a fine of AED 5,000 per affected worker.

Conclusion

Compliance with the WPS is the only way employers can ensure timely and fair payments of employee wages, safeguard employees’ rights, and protect themselves from severe penalties.

The WPS’s robust framework creates a fair and transparent working environment where every employee feels valued and appreciated. This is why every employer needs to implement this system if they wish to minimize salary disputes and take the productivity and efficiency of their operations to a whole new level.

Contact HRSG if you are looking for wages protection system implementation services for your business to streamline payroll processes and ensure timely and accurate payments to your employees.

Tax Registration Number UAE

Tax Registration Number UAE: Everything You Need to Know
Tax Registration Number UAE: Everything You Need to Know 800 500 HRSG

A Tax Registration Number (TRN) is a unique number that consists of 15 digits and is assigned to businesses or individuals that get registered for VAT in the UAE. Also known as the VAT registration number, the TRN is assigned by the FTA to each business in the region for identification as well as differentiation purposes.

This blog covers the ins and outs of TRN verification UAE. This information will help you learn the eligibility, documentation requirements, and the complete TRN obtaining process so keep on reading till the end.

  • What is the TRN Number in UAE?
  • Format of the TRN
  • Why is TRN Verification Important?
  • Eligibility Criteria to Get TRN in UAE
  • Required Documents to get TRN or VAT Number
  • Step-By-Step Process for Getting TRN Number in the UAE
  • Processing Time

Tax Report Dubai

What is the TRN Number in UAE?

TRN or tax registration number is a 15-digit distinct number that the Federal Tax Authority (FTA) of the UAE issues to those entities that have registered for tax purposes in the region.

All taxable entities in the UAE must obtain this number if they are to fully comply with UAE’s tax laws including the corporate tax and VAT. The TRN verification number is extremely important as it facilitates the identification of businesses for VAT purposes. This number is a part of all key tax-related transactions or correspondences including VAT return filings, tax credit notes, as well as tax invoices. 

All businesses whose taxable supplies exceed the VAT registration threshold must obtain a tax identification number UAE and display it on their every tax and other financial document.

This number not only ensures tax compliance but also authorizes businesses to charge VAT on their goods thus playing a key role in UAE’s tax system and overall economy. 

Businesses can use FTA’s online portal for TRN by adding accurate information along with required documents. After the approval of your application, you will be officially registered for VAT. You will receive essential documents like a VAT TRN, a generated international bank account number (GIBAN), along with a registration certificate.

You can easily download this certificate from your EmaraTax account portal. All of these documents are essential for confirming your VAT registration status and for showing compliance with the tax requirements in the region.

Format of the TRN

Here is the format of TRN:

123-456789012-345

In this number

  • The first three digits represent the FTA
  • The next nine digits are unique identifiers for each business
  • The last three digits are check digits that are determined based on the previous nine digits

Why is TRN Verification Important?

Here is why TRN verification is crucial for businesses in the UAE:

  • Businesses are legally required to add their TRN in VAT returns, tax invoices, credit notes, etc. This way they can validate their VAT registration and show compliance in all transactions.
  • It ensures hassle-free communication between buyers and sellers by allowing businesses to track all transactions.
  • It allows businesses to claim back tax they already paid on certain purchases.
  • TRN gives your business a unique identity.
  • This number when used in your invoices makes your business look authentic and legitimate which builds customer trust.
  • Any communication with FTA is valid only when businesses add this number to the financial documents.
  • Every business operating in the UAE is mandated to use the Emaratax portal by the FTA to register for tax registration and get a TRN. This unique identification number is a must for businesses and individuals to fulfill their tax obligations and show compliance with the country’s laws.
  • Only those businesses that have a valid TRN certificate and a TRN are allowed to charge VAT to their customers.   

Upon registering for VAT, you automatically get a 15-digit unique number i.e., TRN from the FTA. This number sets that entity apart from the rest and they are required to add it to all of their VAT documentation.

The inclusion of TRN in such documents allows the government to track all of your financial transactions to ensure transparency as well as accountability in all financial activities.

Tax Return Dubai

Eligibility Criteria to Get TRN in UAE

For any company to register for VAT and get a TRN, it must meet a certain revenue threshold. Following are the main types of VAT registration and their criteria in the UAE:

  • Voluntary Registration

Businesses whose taxable supplies exceed the revenue threshold of AED 187,500 can voluntarily register for VAT. The revenue range for this type of registration is between AED 187,500 to AED 375,00.

Businesses with a revenue less than AED 187,500 are not required to register for VAT. However, they can still choose to register and get benefits like reclaiming input VAT on their expenses. 

  • Mandatory Registration 

The mandatory revenue threshold for businesses in the UAE is AED 375,000. If the revenue of a business exceeds AED 375,000 in the past year or is expected to cross this threshold in the next 30 days, such entities must register for VAT to avoid penalties. 

These rules ensure businesses of all sizes fulfill their tax responsibilities by adhering to all tax regulations. These criteria force larger businesses to mandatorily register for VAT to avoid fines and smaller businesses to register voluntarily to enjoy extra benefits.

Tax Form Dubai

Required Documents to get TRN or VAT Number

Following are some key documents that you must have by your side when applying for a TRN in UAE:

  • Business Documents

These include the Incorporation Certificate of the Company, Articles of Association (AoA), and Memorandum of Association (MoA).

  • Identification Proof

Copies of Emirates ID and Passports of the directors, partners, and authorized signatories of the company.

  • Authorization and Contact Details

Proof of authorization for the person applying for registration along with their contact information such as address, cell no, and email.

  • Financial Documents

These include bank statements that validate the business’s bank account details. Audited financial statements or financial reports such as proof of financial status are also required.

  • Additional Documents 

You will also need:

  • Power of attorney documentation (if applicable)
  • Partnership deeds (if applicable)
  • Customs registration documents (if applicable)
  • Details of business activities or the nature of supplies
  • Other relevant documents about the specific nature of the business

Step-By-Step Process for Getting TRN Number in the UAE

Following is a detailed step-by-step procedure to help you apply for the VAT registration number:

Step 1: Visit the FTA’s official website and create an EmaraTax account by adding your email and other relevant information. Activate this account using the confirmation email sent to your email ID.

Step 2: Log in to your account using accurate credentials. After that, navigate to the dashboard to proceed.

Step 3: Create a new taxable person profile. To do this, you need to add details like legal name, trade name, contact info, business activities, and other business details.

Step 4: Next, you can click on “View” to access your profile or newly created taxable person account.

Step 5: Go to the VAT section and click on “Register” to initiate the process.

Step 6: Fill out the registration form by adding the information about your finances, bank accounts, annual turnover, etc. After that, upload copies of your required documents that were mentioned in the previous section.

Step 7: Review the entire application one more time with great care to ensure accuracy. After verification, you can submit your application and wait for the approval.

Step 8: The FTA will review your application and request additional clarification or relevant information if the need arises. If everything checks out, the FTA will approve the application and issue a VAT registration certificate along with a unique UAE TRN.

These are the steps that you must follow to successfully register for VAT services and get a TRN to ensure compliance with UAE’s tax laws.

Processing Time

It can take up to 20 business days for a business to obtain a TRN in the UAE. In some cases where FTA needs more information to make the decision, it can take some extra days before you get the approval.

Conclusion

Every business operating in the UAE that is eligible for VAT must also obtain a TRN. This number gives your business a distinct identity and it helps you ensure legal compliance. Obtaining TRN is crucial since failure to do so can lead to fines and penalties.

This unique number facilitates better communication between your business and FTA. This number makes your business appear authentic which builds credibility in your customers when it comes to the legitimacy of VAT charges.

This is why you need to obtain your TRN as soon as possible to resume your operations in the region without major disruptions.

You can contact us at HRSG to get the best tax and TRN registration services in the UAE. Our dedicated team of experts can guide you to ensure accurate document filing. With our ongoing support, we can guarantee tax compliance as well as adherence to FTA guidelines for your business in the UAE.

HR Outsourcing Dubai

What is HR Outsourcing (HRO)? Types & Benefits
What is HR Outsourcing (HRO)? Types & Benefits 800 500 HRSG

Struggling between recruiting, payroll, and compliance? You may barely have the time to focus on the core aspects of your business. Sounds familiar? If so, you are not alone. Hundreds and thousands of business owners struggle to balance operational tasks with growth activities. In fact, 36% of HR leaders lack the resources to recruit top talent. 

This is where HR outsourcing, otherwise called HRO, comes into the picture. What is it? What are its types and why should you explore this? We’ll answer all of this and more in this blog. 

What is HR Outsourcing?

HR Outsourcing refers to the practice of hiring a third-party expert to handle all your HR operations—hiring, payroll, compliance, employee engagement, and more. This third party may manage some or all of HR operations, depending upon a business’s unique needs. 

Why would they do it? The short answer is access to specialized experts, top talent pools, advanced tools, and scalable solutions. This is beneficial for companies of all sizes that may lack the necessary resources to build a fully functional and well-equipped HR team in-house. 

Types of HRO Services

As we mentioned, a third-party expert may handle some or all of your HR needs. To help you understand it better, here is a breakdown of the specific sub-services that make up the larger umbrella of HR outsourcing services. 

  • Recruitment Process Outsourcing (RPO)

Recruiting employees is not as simple as it used to be. With complex role functions and newer job roles, finding a candidate who fits the bill can be challenging. Moreover, you need to undertake a needs assessment to identify your company’s unique hiring needs.

Not to forget the long screening, assessment, and interview cycles that may take anywhere from a couple of days to weeks and months to fight for the ‘right’ candidate. “Why?” you may ask. Well, because you may not have access to a qualified talent pool in the first place. Another hurdle could be offer management. This includes creating the perfect offer that aligns with the company’s needs, is compliant with the industry standard, informs the candidates about it, and answers an endless list of questions that they may have. 

RPO is your company’s strategic decision to make screening and hiring more efficient and effective. RPO experts take care of everything for you. They:

  1. Have access to the qualified talent pool. 
  2. Will work with your internal team to conduct a needs assessment.
  3. Will study how your hiring is affecting your operations.
  4. Will create a custom solution.  
  5. Have the necessary Service Level Agreements (SLAs), technology, and reporting systems in place. 
  6. Are experts at screening, assessing, and interviewing candidates to identify the fit. 
  7. May also support your team during onboarding.
  8. Provide you with important reports like time-to-fill and cost-per-hire.

  • Payroll Outsourcing

Payroll is an important function of a company. Unfortunately, it can get equally complicated, especially with tax deductions, law compliance, printing pay cheques, setting up direct deposits, and more. 

Payroll outsourcing teams take all this headache away, ensuring your employees get paid on time, and your company is compliant with legal regulations. As a payroll outsourcing team, they will need access to your business bank account and employee time tracking system. Once they have access to this, they will take care of your payroll activities. This means:

  1. Tracking and implementing benefit deductions 
  2. Calculating taxes and withholding the right amount.
  3. Maintaining confidentiality on wage garnishment and corporate tax filing. 
  4. Eliminating software concerns.

Payroll Dubai

  • Compliance Outsourcing

Compliance outsourcing means having experts take care of monitoring, auditing, and implementing compliance with legal and regulatory requirements. As such, these experts help you avoid penalties, follow labor laws [local, national, and international], as well as maintain industry standards. These experts will also assist you in developing policies and evaluating potential risks. Additionally, they may also provide employee training on legal and regulatory requirements.

  • Benefits Administration Outsourcing

Employees deserve more than just salary for the way they help your company grow—for instance, health insurance, wellness programs, and retirement plans. Unfortunately, finding the right partner who will offer these to your employees on your behalf at a cost-effective price is challenging.

A third-party benefits administration outsourcing partner has all the contacts you need. They can get your employees high-level programs at low costs which are attractive, compliant, and related to your employee’s needs. 

  • Training and Development 

As an employer, you are responsible for your employee’s learning and professional growth. Consequently, you need to periodically invest in training programs and workshops that bridge the skill gap and enhance present skills. 

Training and development outsourcing gives you access to top-class professionals, each well-known in their field for designing and delivering employee training programs. They offer customized learning solutions that are best suited for your employees. 

Training and Development

  • Employee Relations

Another important function of HR that can be outsourced is employee relations. This means that a third-party partner acts as a mediator between you and the employee. They offer counseling and conflict resolution sources. Some of the key areas they can address on your behalf include:

  1. Workplace issues
  2. Handling grievances 
  3. Labor relations
  4. Attendance issues 
  5. Performance issues
  6. Disciplinary actions 

  • Performance Management

Employee performance is key to your company’s success and growth. Performance management outsourcing gets you expert support for managing your employee performance reviews, goal setting, and feedback processes. In fact, it makes the entire process extremely simple, objective, and streamlined, considering that feedback processes can often get complex and biased at times. 

Benefits of HR Outsourcing

By now, you must have figured out a couple of benefits of HRO services. We will state them explicitly for you for better clarity and understanding. 

  • Saves Precious Time

HR outsourcing services can take care of routine, repetitive tasks such as employee attendance, tax withholding, and payroll. This way, your in-house HR team can focus on other activities. 

  •  Cost Efficiency

Companies often spend a lot to attract top talents, approach them, and hire them. Moreover, when employees leave, the cost of hiring a new employee may be high. HRO services take care of everything from attracting to hiring talents. In fact, they have a talent pool often readily available for you to hire from. 

Furthermore, when you outsource HR functions, you may not require a full in-house team and train them. At most, you may need 1-2 individuals to collaborate with the third-party partner. 

  •  Access to Expertise

HRO providers are experts in their fields. They stay updated on the latest HR trends, laws, and technologies, ensuring your business benefits from industry best practices

  • Better Compliance

HRO providers are also well-versed in labor and employment laws. Consequently, they not only help you bridge the current gaps in your practices but also point out potential risks and give you solutions for them. This keeps you free of penalties and legal actions. 

  • Scalability and Flexibility

As your company grows, your need for HR efficiency grows with it. HRO provides you with the necessary resources and flexibility to expand as you like.

Conclusion

Outsourcing your HR functions can be a complete game-changer for your company. It can free up essential time, which can be invested into better processes that help your company grow. 

We, at HRSG, can support you to streamline your HR functions and improve their efficiency. Our tech-enabled solutions are built keeping in mind your company’s unique needs. The solution combines a variety of HR functions, relieving you from day-to-day tasks and allowing you to focus on other value-adding initiatives. 

Our Managed Staffing solution, for instance, takes care of everything from onboarding to benefits, payroll processing, and matter monitoring. We also offer verification and screening services with the help of activities such as pre-employment background checks to ensure your workplace is safe with every hire. 

Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, is happy with you. 

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs?

How Do IT Salaries in Dubai Compare to Other Major Tech Hubs?
How Do IT Salaries in Dubai Compare to Other Major Tech Hubs? 800 500 HRSG

Dubai is a thriving hub for IT and tech. This flourishing tech ecosystem aligns with Dubai’s aim to become a premier hub for tech companies by 2030. At present, the city is home to more than 2,300 technology companies. Moreover, initiatives like Sandbox Dubai, a startup accelerator program for ambitious pre-seed to seed stage tech entrepreneurs, are helping founders test and market new products and technologies for greater innovation. 

Consequently, you can expect more role openings and better opportunities. You may ask, “What does the payout look like?” Today, we are going to answer this question for you. This blog will explore what makes Dubai a tech hub and compare the IT salaries here with other major tech hubs. 

What Makes Dubai a Tech Hub?

We will keep it short and crisp. Here are the top reasons Dubai is a leading tech hub to watch out for: 

#1 – Tech Infrastructure & Ecosystem

UAE, specifically Dubai, continuously seeks ways to upgrade its infrastructure to make it one of the best to exist. This has resulted in many tech parks, innovation centers, and research and development hubs. Moreover, the officials are working on improving the state of the internet, connectivity, and digital infrastructure as well, all while keeping in mind the privacy and security of the users. 

Dubai has the most significant data center ecosystem in the UAE, featuring the following:

  • 18 colocation data centers
  • 237 cloud service providers 
  • 18 network fabric providers

This rapid expansion is expected to add $181 billion (AED664.79 billion) to UAE’s economic value over the next 10 years. While tech giants like Microsoft, SAP, and AWS are already operating here, other players like Equinix are also expanding their presence. 

Collaborative platforms and initiatives like the Sandbox Dubai further help balance novelty and experience, allowing new tech entrepreneurs to learn from seasoned tech leaders. This helps them test and refine their products and technologies early on, setting up the stage for global expansion. 

#2 – Booming Tech and ICT Landscape 

Information and Communication Technology (ICT) spending in the UAE has increased considerably, thanks to increased digitalization. Moreover, the adoption of leading technologies like the Internet of Things (IoT) and artificial intelligence (AI), cloud, big data, and more has led to a boom in the industry. As a result, leading companies are investing in research and development to enhance these technologies further. 

#3 – Favorable Environment

Another very important factor contributing to Dubai’s growth as a tech hub is free zones. These include the Dubai World Trade Centre, Dubai Internet City (DIC), and Dubai Silicon Oasis (DSO). These free zones operate with:

  • Tax exemptions
  • Allowance for 100% foreign ownership
  • Ease of business setup

How Do the Salaries in Dubai Compare to Other Major Tech Hubs Globally?

IT Salaries in Dubai

The average IT salary in Dubai, United Arab Emirates, is AED 8,250 monthly. Furthermore, the average salary for an IT engineer is around AED 6,500 – AED 12,000 per month. Similarly, for a software engineer, it ranges from AED 227,997 to AED 440,760. 

IT Salaries in Silicon Valley 

Located in San Francisco Bay, Silicon Valley is unarguably one of the best tech hubs in the world. It houses some of the biggest giants like Google, Meta, Tesla, and Apple. What makes it the best is the presence of excellent funding, the pool of talented employees, and an innovative culture. 

A back-end software worker’s average IT salary in Silicon Valley is around $158,000 annually. For an AI engineer, it is approximately $156,648 and $200,000; for a data scientist, it is $120,931; and for an information system manager, it is $164,070. 

Google Office Silicon Valley

IT Salaries in the Greater Boston Area

The Greater Boston Area is another well-known tech hub and home to prestigious institutes like Harvard and MIT. This area is a major player in biotech and AI research. 

The average IT salary here is $89,749, typically between $78,770 and $98,898 per annum. That for a Software Engineer is $161,700, IT Specialist is $95,005, Senior Software Engineer ranges from $160,400 to $253,750, and Cloud Architect is approximately $160,000 annually on average.

IT Salaries in Beijing 

Home to major tech companies like Baidu, Tencent, and Huawei, the tech scene in Beijing is driven by the Chinese government’s investment as well as research and development centers like the Chinese Academy of Sciences.

Salaries in IT here range from 17,500 CNY to 55,000 CNY monthly. The average salary for an AI/machine learning analyst is 34,100 CNY, a Blockchain developer is 29,200 CNY, an Information Security Engineer is 30,100 CNY, and an SAP Consultant is 33,000 CNY. 

IT Salaries in Berlin

Probably one of the largest tech hubs in Germany, Berlin is one of the leading cities in digital transformation in Europe. The average salary for an IT Support is €44,900 per year. Similarly, the average annual salary for a software engineer is approximately $80,000 to $113,192; for a data scientist it is €43,000 – €76,000; and for an Information Security Engineer, it is $75,000.

IT Salaries in Bangalore

Touted as the Silicon Valley of India, the tech city of Bangalore has a new startup that is mushrooming almost every day. It is a hub for public sector industries like aerospace and telecommunications. In fact, global titans such as Amazon, Uber, Cognizant, Texas Instruments, Wipro, Microsoft, SAP LABS, and more have their headquarters here. 

The average salary for IT roles in Bangalore is approximately ₹5,60,000 annually. Specifically, the average annual salary for an IT specialist is around ₹12,95,000, an Automation Engineer is ₹ 1,250,000, and an IT engineer is approximately INR ₹8,75,000. Entry-level roles start at ₹ 500,000 per year, while the most experienced ones could make up to ₹ 2,500,000 per year.

Microsoft Office Banglore

IT Salaries in Singapore

Over the years, Singapore has become a sought-after destination for tech innovation. Multinational companies find Singapore attractive for their operations, thanks to the excellent government initiatives and access to regional business opportunities. Moreover, the country has a highly skilled workforce with a diverse tech ecosystem. 

The average IT salary here is approximately S$60,000 per year. Entry-level positions start at S$42,000, while those who are significantly experienced can expect to make up to S$92,700 per year on average. The annual average salary for a Project Manager is S$75,000, a technology manager is S$78,000, and a network engineer is S$66,000. 

IT Salaries in New York

New York is another well-known hub in the tech ecosystem. The average IT salary here is $93,512 annually, ranging between $82,073 and $127,500. A well-experienced individual can even make as high as $160,000 per year. An IT Technician can expect to make $63,259 per year, an Information Technology Specialist around $85,498, and an IT Applications Manager about $125,855 per year on average. 

IT Salaries in Tokyo

Japan is constantly adapting to the challenges posed by digital transformation. In fact, Tokyo is ranked #10 in the Global Startup Ecosystem. Some of the best IT companies, such as Sony, Toshiba, Fujitsu, Hitachi, and more, offer exciting IT careers for professionals. 

Some of the highest-paying job roles here include IT manager, security manager, and business analyst. The average salary for Information Technology is JP¥1,08,50,000 per year in Tokyo. For an IT Engineer, the average annual salary is approximately ¥4,800,000. Similarly, the average for an IT specialist is JP¥ 52.5L per year. 

IT Salaries in LA

Los Angeles is another exciting destination for IT professionals. The average salary here is $134,977 per annum. An IT technician can expect $60,537, an IT Specialist is $72,172, a Systems Engineer is $134,997, and a Network Engineer is $125,043 on average annually.

IT Salaries in London

Finally, there is London. The average salary here is around £37,500 per year, ranging between £27,000 and £57,500. An IT Engineer can expect £37,415, an Automation engineer £51,605, an Automation Architect £70,701, and a Systems Engineer £60,239 per year on average. 

Conclusion

Dubai is home to many more IT companies, such as HCL Technologies, Cognizant, KNZ Solutions, Mind Tree Info Tech, and more. The UAE government’s initiative to boost the tech space supports the companies and more. 

Besides the golden opportunity for growth, the salaries offered are attractive and very well compared to wages in other major tech hubs. In the coming years, one can expect the average salaries to increase, given the boom and influx of investments. It is important to note that the salaries mentioned here are averages of the highest and the lowest paying roles. The exact salary could be much higher or lower based on your experience and specialty. 

HRSG offers tech-enabled solutions that are built to deploy the right resources at the right time for you. Our People solutions cater to recruitment, executive search, and organizational development, while our Business Solution addresses Integrated Facilities Management services. On the financial front, we offer accounting and bookkeeping, corporate tax, audit and compliance, and other related solutions. 

Our team of 60,000+ associates across 500+ locations can help you rewire your organization’s workforce administration and compliance practices to meet global benchmarks, ensuring that your most important asset, your employees, is happy with you. 

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Your Guide to Modern Employee Recognition
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What is employee recognition?

Employee recognition refers to the process of acknowledging and rewarding the efforts and accomplishments of employees of a company. It can take numerous forms, including verbal praise, incentives, promotions, prizes, or public acknowledgment. Organizations may benefit from employee recognition in a variety of ways, including greater staff morale and motivation, improved work satisfaction, improved employee engagement and retention, increased productivity, and higher levels of customer satisfaction. It can additionally establish a healthy company atmosphere and encourage employee teamwork and collaboration.

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HR Functions of Up-skilling Workforce: How Investing in Your Employees Pays off
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Up-skilling has turned into a necessity for employees, businesses and become a primary focus of HR functions in today’s fast-paced, and constantly evolving job market. A positive return on investment (ROI) can result from investing in your employees through up skilling initiatives, which have numerous advantages. Here are five ways up skilling employees can potentially help with your business operations.

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Recruitment and Selection Strategies

Recruitment And Selection Strategies For The Modern Workforce You Should Know
Recruitment And Selection Strategies For The Modern Workforce You Should Know 1000 686 HRSG

What is Recruitment?

Recruitment is finding, selecting, employing, and onboarding qualified job candidates. It is the most essential aspect of human resource management (HRM). The entire process must be managed by skilled HR managers. A company’s recruitment and selection strategies increase its attractiveness to prospective employees.

Workforce trends are constantly shifting. Workers’ requirements, that is, their behaviors, wants, and needs, have also evolved. Traditional business practices cannot be applied to today’s workforce.

Companies must understand these changes and effectively adjust their recruitment strategies. Finding the right fit for a job is the most complex and critical part of any selection process.

The following are some hiring strategies that businesses should consider:

Culture Fit

When a company has a job opening, it usually considers the skills a potential employee must have for that position. Identifying the organization’s values, communicating them in job postings, and evaluating them when hiring, on the other hand, are all equally important.

These can be assessed through online personality tests prior to an interview or during the interview process, in which a prospective candidate is asked about his or her work ethic, personality, and characteristics. They can then be matched to the values of the company.

Attractive Job Posting

Regarding the required skill set, many job openings in the labor market are similar to those you need. Because of the accessibility, candidates have a large number of postings to choose from.

The company must therefore make their job posting appealing by mentioning the benefits of working for them and the skills they require. The candidate must understand why working for your company is preferable to working for another.

Businesses today use applicant-tracking systems to organize, collect, and filter job applications. This software is designed to help and improve the recruitment process. Several applications are sorted and filtered following the company’s criteria, saving valuable time and labor with a single click. Those applicants who do not meet the job requirements are sent an automated generic response, and the employer can then focus on those applicants who do.

Interview Procedure

The interview should be thorough and assess the candidate’s capabilities so that the interviewer knows whether the candidate is a good fit for the organization by the end. The questions should be well thought out and capable of assessing the employees’ goals, skills, and behaviors.

The interview can be conducted via video conferencing with a candidate in a different city than the organization. This is a good way to reach a larger pool of prospective employees who may be a better fit but need help to travel for an interview.

The entire process should be a two-way communication in which the employer provides information about the company while questioning the employee. The candidate should know the opportunities available while working for the aforementioned organization.

In addition, they must leave the interview with a clear understanding of the company to know if they will work here.

Digital Platforms

Job postings on digital or social media platforms enable a company to reach a larger audience. Candidates who had not previously applied may be enticed by the perks, higher pay, and other opportunities that the company provides that their previous employer did not.

Online marketing will draw attention to the job opening and bridge the gap between the employer and the employee.

Company Reviews

Prospective employees can look for information and reviews from previous employees of the organization to which they want to apply. The shared experiences will allow the applicant to learn about the company’s culture, working hours, workload, increments, and overtime pay.

Positive feedback from a company will encourage more people to apply, and the company may be able to find the best suitable match during this process

Is Recruitment Easier Now?

There is no simple answer to this question. Although recruiters receive more talented applicants from all over the world, the process has become more competitive.

While selecting the best-suited candidate, companies must also demonstrate their value to the prospective employee, i.e., why the employee would be better off working with the future organization rather than their current one.

As a result, when the right person is hired, he or she becomes an asset to the company, benefiting both the selector and the selected.

Equal Employment Opportunity

What You Should Know About An Equal Employment Opportunity
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What Is Equal Employment Opportunity?

The concept of equal employment opportunity relates to the idea that everyone is treated equally. When hiring, firing, or promoting someone, they should be treated fairly regardless of age, gender, religion, race, ethnicity, or other characteristics.

Any job applicant who advocates his interests throughout all employment-related choices has a right to equal opportunities. Regardless of differences, everyone is subject to the benefits of employment, such as performance-based incentives and awards, as well as the penalties for poor behavior. This comprises:

  • Hiring
  • Recruitment
  • Termination
  • Leaves/ Absences
  • Sense of style/ dress
  • Employment conditions
  • Any perks, promotions or bonuses being offered
  • Demotions and disciplinary measures

Importance and Benefits

  1. Equal Employment Opportunity (EEO)  supports a diverse culture and eliminates any possible hurdles to advancement. Organizations with EEO standards succeed in attracting a diverse pool of employees. These individuals offer the company various cultures, cognitive processes, and skills, promoting a pleasant collaborative work environment. On the other hand, organizations that are inflexible and not particularly inclusive have a difficult time finding the right talent. Due to their restrictive recruiting procedures, businesses frequently lose money and time owing to lousy hiring judgments.
  2. A diverse workforce means the company can access a broader range of ideas, experiences, skills, and talents. This allows for the growth of innovation, especially if you run an IT company that relies on continuous innovation. This also allows teams to make decisions that are more informed and become more focused, solution-oriented, and ultimately more productive.
  3. Purposefully and comprehensively applied EEO policies help enhance employees’ morale. This is essential as it contributes to developing a positive reputation for the company. Creating an inclusive team of individuals paves the way for a tolerant, open, and accepting company culture. Furthermore, a company’s commitment and EEO practice standards earn them a good reputation in their industry, gaining them a competitive advantage.
  4. Commitment from the top of the company’s hierarchy is required for effective EEO implementation. Why is it so crucial? It is critical because upper management has ultimate control and resources to achieve such a significant organizational change. Commitment from them entails the development and adoption of inclusive EEO policies, which will eventually set the foundation for the rest company. If upper management does not back or support this cause, only surface-level actions will be taken, often resulting in failure.
  5. Training programs are critical to ensuring that EEO practices are effectively executed and implemented. Employee education through training and mentorship contributes to the strengthening of EEO policies. This helps them understand that all employees are equally valuable to the company. This assists in confronting unconscious biases and cultivates the seed of a supportive, accepting, and inclusive workplace with a diverse and positive culture. As a result, incorporating EEO standards that cannot be moved is the key to successfully disseminating such a culture.
  6. The clientele and customer base expertise equally each employee contributes to the company’s growth and earnings. It is a positive indicator since it offers the business a competitive edge and eventually helps it become the clients’ top pick. EEO is favorable and advantageous to them since it aids in achieving their ultimate goal, which is for them to be the clients’ first option, making that their primary motive for most businesses.

Final Words

To sum up, it is critical to recognize that everyone has a right to equal opportunity in the workplace. Yes, it is not easy to implement. It is much simpler said than done. However, since the goal is a crucial requirement of the hour, leaders must be able to move in that direction. This is due to the importance of fair employment practices in maintaining our sense of community. Especially since the financial hardship and employment, losses brought on by the pandemic still exist in the post-pandemic era. Humans must learn to be kind and think about one another rather than acting in a thoughtless and insensitive manner.

Many people experience gender, racial, sexual orientation, and nationality stereotypes to some extent. It is frequently essential to actively overlook the past to assess individuals objectively. The emphasis must be on creating a lively and upbeat work environment, seeing past differences, and putting out teamwork and communal efforts to pursue shared accomplishments.

Online Payroll Management

Online Payroll Management For Small Businesses
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Payroll management is the process by which an employer pays wages to its employees. Show commitment to their workers, fulfill their obligations and correctly keep financial records. No matter where your employees or teams are located, payroll is completed accurately and on time. Online payroll management system automates the entire payroll calculation process.

Payroll Management – Traditional Approach  

Many small businesses used to manage their payroll system through traditional ways. Manual processing involves juggling paperwork and scrolling down spreadsheets to keep the records in the correct form. However, this approach requires security concerns, protecting the payroll information. Data misplacement, thefts, and record leaks are involved in this approach.

Daily paperwork leads to data misplacement, making it more challenging to manage the payroll. It leads to the ineffective data management of payroll.

The company goes through piles of papers consuming time and energy; hence, higher expenses are acquired. This happens because many resources are being utilized to process payroll manually. This leads to higher costs along the way, affecting the business’s bottom line gradually.

Payroll Management – Digitalized Approach

Small businesses have started to shift towards the digitalized payroll method. This is an effective payroll management system. Payroll software is much better than the traditional approach as it saves time and money. It has a quick payroll payout since it is 100% accurate, and all necessary calculations are done through a few clicks.

Online payroll management is a user-friendly system as it has 24×7 accessibility; hence it is flexible and customizable at all times. A digitalized payroll approach organizes a large sum of data, maintain accurate calculations, and minimizes errors.

This saves time and manpower, so the payroll system becomes more effective. This system enhances the speed and accuracy of payroll processing. It brings in on-demand reporting, improved data quality, and the ability to track the workforce.

A digitalized payroll involves automated processing and dealing with a large data volume. It has multiple benefits as well. This avoids errors, reduces payroll management time, and increases the team’s efficiency and productivity.

It has an integrated platform that deals with outsourcing which eases large-scale data processes. An online payroll system also protects the company data and keeps the payroll safe and secure.

Continuous changes, such as in labor and taxes, directly impact production. Having a digitalized payroll system automatically makes changes to the data.

Why Should Small Businesses Opt For An Online Payroll Management System?

An owner of a business can pay his/her workforce consistently. But time by time, keeping track of the paperwork and reports gets challenging. This makes it very time-consuming and makes them struggle to stabilize their business.

Small businesses opt for an online payroll management system to grow. This is a tangible and reliable human resource solution that helps them grow and help monitor their workforce.

It helps focus more on the overall impact on the firm’s growth. With effective payroll management, small businesses work towards their goals and aims. This increases HR’s efficiency and capacity. Effective payroll management allows businesses to keep track of their employee’s tax information.

It helps employees with their benefits and retirement information and handles employee information. This software tracks the paid time off and the workforce’s attendance.

Benefits of Payroll Software

Payroll software is a compatible and flexible system that saves time and cost with improved resource efficiency. Many businesses have started to use payslip management software rather than manually working on it. This software provides accurate data and analysis in a secure and easily accessible way. It calculates salaries and simplifies the deduction process, generating payslips and calculating holidays and bonuses.

Effective payroll management helps businesses save money since there is a reduction in data entry errors. This saves a lot of time. It allows the owners to focus on the business’s core competencies rather than investing most of their time doing payroll paperwork.

Having online payslip management, everything is done automatically, reducing the need to train employees to handle payroll records. It allows the HR team to focus on other business-related duties and keep tax information up-to-date.

Linking the attendance management system with payroll software makes it easier for small businesses. It automatically links the payroll HR system with the biometric time and attendance machine.

This helps maintain proper attendance records and makes payroll calculations simple as well. This includes sign-in to sign out as well as early leave, too late coming in and overtime.

All the records are easily maintained. Attendance reporting generates on-time reports using payroll data linked through the time and attendance machine. It calculates working hours data accurately. The report gives the firms an overview of the staff working and analyses their effectiveness and efficiency.

Outsourcing Payroll Management 

It is one of the most effective strategies for achieving successful payslip management and avoiding payroll mistakes. Many business owners outsource payroll activities to use their knowledge, expertise, and technologies.

One of the main advantages of hiring a dependable partner for payroll administration is that it frees the business from handling daily tasks. This helps focus on other corporate concerns while retaining efficient control over the procedure. Payroll outsourcing ensures professionalism, effective time management, and timely technological advancements while improving reporting and compliance.

recruitment and selection strategies

16 Most Effective Recruitment And Selection Strategies
16 Most Effective Recruitment And Selection Strategies 883 511 HRSG

Any type of company recognizes the value of the recruitment and selection processes since they help select the best candidates for open positions. To achieve the strategic goals and objectives of the employees and the company, recruitment and selection are crucial processes in human resource management.  It is a process of identifying, vetting, shortlisting, and sourcing the best candidate for a certain post. The managers implement the tactics that are most useful for achieving the aims and objectives of the company. Understanding the procedures for hiring and selecting candidates, the variables influencing the methods, and how to make them work best are the key goals of the article.

What Is Recruitment

The process of choosing and recruiting a potential employee with the intention of filling a job inside a company is known as recruitment. The process of selecting the appropriate candidate at the appropriate time for the appropriate post.

What Is Selection

The best candidate for the job is chosen after a process of careful consideration. It is a thorough process in which the management conducts interviews with prospective workers and assesses their qualifications and skills considering the job position’s requirements.

What Are Recruitment And Selection Strategies

A company’s human resources are essential to its success. When carried out according to a certain strategy where the overall wellbeing of the corporation is taken into consideration, the occupations, functions, and all duties are completed in a proficient manner. Hence, it is essential to have a recruitment and selection strategy within the firm that ensures all kinds of responsibilities and tasks are given to people who are the greatest in their respective fields, skills, and abilities. The management also plans for the staff’s training.

16 Effective Recruitment And Selection Strategies

  1. Facebook, Twitter, Instagram, and LinkedIn are the social media platforms with the most reach for job postings in the modern era. Businesses can engage with possible applicants and routinely source personnel.
  2. If social media ads have a wider audience, they can reach more candidates. As you have the option to sponsor your job posts on all job sites, you can enhance the number of qualified candidates who view your job vacancies.
  3. The company can use passive hiring, in which they look for people who are already employed and aren’t looking for work right now. By doing this, you’ll demonstrate that you’re aware of their skills and are interested in working with them in the future.
  4. There is no bias present during the employment process because of the manner the interviews are handled. It is a two-way street; in addition to the interviewee, the employer is also scrutinized. So, keep in mind that you are seeking both professional qualifications and values alignment.
  5. The business must spend money on a system for tracking applications. This would enable significant time and cost savings. The posting of adverts and applicant tracking are both automated processes.
  6. The job description should be precise and clear. Also keep the requirements according to the company’s needs.
  7. The company can hold hiring events where they can recruit recent university grads. The best venues to look for new talents are educational institutions. For those looking for work in that profession, the organization can also host formal and informal activities.
  8. Using specialized job sites not only expands the candidate pool, but also makes a company more appealing to potential hires by fostering a secure and pleasant workplace.
  9. Involve the existing employees to help find new talent. Since they are already inside the system, they can tell better what skillset of specific traits are required for a job.
  10. Questions from candidates must be responded to first. To answer all their inquiries, you must first build a space online. On the business’s website, there may be both a list of frequently asked questions and live chat alternatives.
  11. The company must practice diversity to eliminate biases throughout the selection process. Ensuring DE&I gives out a clear message that your organization prioritizes the people most.
  12. There are always former workers who are willing to recommend you as a good workplace and who departed on good terms. Because of their increased experience and skill since leaving, they may also be rehired.
  13. A referral program that rewards and incentivizes employees for recommending qualified candidates will encourage employee referrals. As a result, your local application pool will grow, and team chemistry will generally improve.
  14. To complete the task, the organization may recruit HR professionals. This will provide them with the opportunity to discover the ideal fit from a professional standpoint.
  15. The best places to find potential applicants are at job fairs with plenty of attendees. Casual discussions regarding the subject can help one understand their own talent.
  16. Invest in a thorough data analytics system to determine the number of applicants, the number of interviewees, the origin of the top candidates, etc. The recruitment process will be improved over time by reviewing the procedure after each hire.

After successfully recruiting and selecting qualified people using the aforementioned strategies, it is critical to preserve and keep your company’s human resources. Hence, after selecting them, paying attention to their requirements is essential for keeping them. The company and its employees are a team, and they must collaborate to achieve greater success.

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