A common document in the country is the salary slip in UAE, which has different uses for workers. Knowing all the aspects that have to do with this document ensures that you can understand every detail and know if you are receiving the agreed salary. Moreover, employers must include adequate information on the slip to avoid violating the law.
In this article, we will show you the meaning and characteristics of salary slips in the United Arab Emirates. In the same way, we will answer some of the most common concerns among workers regarding this document.
What is salary slip in UAE?
A salary slip in UAE (or payroll slip) is a document that contains details of the salary of a worker and employment. Therefore, the employee can use it to know his/her monthly salary, gross salary, and other relevant details of his work. In addition, you can receive it both in paper and digital format, something that many companies do today.
Why is Pay Slip Dubai important?
This type of slip is important for the employee because in it they can know the details of their income and deductions as part of a company. In addition, the salary slip is an essential document for some procedures, among which we can highlight:
- Personal loan application
- Credit cards
- Home Mortgages
- Receive certain government benefits
Therefore, you should request your pay stub in case your employer has not provided it to you.
Why is salary slip in UAE necessary for a personal loan application?
Loans in the UAE are not tied to salaries, although lenders require proof of income. In addition, both people who work in companies and those who are self-employed can apply for personal loans. Therefore, if you indicate in a loan application that you are salaried, you will surely be asked for a salary slip.
In this case, because there are salary requirements to determine the type of application, the slip serves as verification for the bank. Thus, the slip is a mandatory document for this type of application, based solely on your profession and salary.
Who gets a salary slip in UAE?
In the country, workers, regardless of their work schedule or other aspects, have the right to receive their payslip format UAE. Furthermore, they must receive it at the appropriate time, in the best cases, right after receiving their payment. That is, on the date established in their contracts or 10 days after that date at most.
How to apply for a salary slip in UAE?
Each company has its own salary slip template UAE and the process for its issuance. Some of the factors that can affect this process are those indicated below:
- Size of the company
- Job positions
- Type of employment (permanent or temporary)
- Working time (part-time or full-time)
Furthermore, in the case of small companies, they likely carry out the issuance process manually. On the other hand, larger companies will comply with the process through specialized software, which speeds up the process much more.
How is the pay slip format UAE?
The salary slip format UAE is not unique, as companies can create their formats for this document. However, this type of slip must contain the following components in all cases:
- Gross salary. This is the amount of money you receive initially without considering the corresponding deductions.
- Net salary. In this case, it is the total salary you receive after the different deductions.
- Payroll number. Companies that work with payroll software assign each worker a specific number.
- Fiscal Code. If you must pay any type of tax, you will receive a code that identifies the type of tax.
- License payment. If you are receiving payments for any type of leave, the pay slip format UAE will also indicate the amount separately.
- Pension payment. Local workers receive a 5% deduction as a pension contribution, which does not apply to foreigners.
- Additional benefits. The slip should also include any additional benefits the worker receives (medical insurance, life insurance, overtime, and more).
Salary deductions on the pay slip Dubai
In the UAE there are various deductions from salaries of the workers. In this case, are those related to leaves taken by the employee, infractions, or fines that must be deducted from the salary. Likewise, there are other deductions from the law, such as those related to pensions in the UAE for local workers.
What are the types of salary slips in UAE?
The type of pay slip in the UAE only varies as to whether it is a printed slip or whether it is an electronic format. This depends on the company you work for since smaller ones generate slips manually and larger ones use specialized software. Printed slips are more traditional, although those generated in electronic format are more practical, adequate, and easier to store.
Frequently Asked Questions
Is salary slip mandatory in UAE?
All employees in the country have the right to receive a pay slip format UAE from their employers. Additionally, as we have mentioned, they can receive it in paper or also in digital format if the company does it that way.
Are digital and manual salary slips valid?
In the United Arab Emirates, both paper and digital pays lips have the same legal status. What both the employer and the worker must consider is that any alteration or false information on a slip is considered a crime.
What are the benefits of salary slip in UAE?
Payment slips in the UAE have various benefits, of which the most notable are the following:
- Know the contribution to the pension fund. Local workers can clearly know what their contribution to the pension fund is and what that of their employer.
- Background check. In the same way, the slip can be used to review certain aspects of the employment, as well as the salary.
- Get a loan. In addition to serving as proof of ability to repay a loan, it helps to determine its amount.
What is the difference between In-hand/Gross Salary and Cost to Company (CTC)?
The concept of CTC (Cost to Company) refers to the total annual spending of the company on an employee. On the other hand, the gross salary is the total amount that the worker receives in a given period before deductions. Furthermore, the Cost to Company includes salaries and contributions, as well as reimbursements.
For its part, the gross salary is made up of, among others, the following aspects:
- Basic salary
- Housing rental subsidy
- Municipal subsidy
- Other subsidies
What is the difference between salary slip in UAE and salary certificate?
Salary certificates are a formal document that contains employee salary information, and contains an authorized signature. In this case, it certifies that a person works or worked in a company in the UAE with a set salary. However, the said certificate does not need to contain detailed information on the salary of the worker during the time of service.
On the other hand, the salary slip in UAE provides detailed information on the amount and deductions of the employee in his pay period. Therefore, the difference between the two is that the former demonstrates employment and the latter does so in addition to indicating the detailed salary.
If you require more information about this and other aspects of employment, you can contact us with confidence.