Top 3 Payroll Trends Shaping the UAE Workforce

Author:

Kaoutar Makrache - Payroll & Compliance Lead, Cercli

Payroll might not be the most glamorous topic, but it’s a cornerstone of every workplace. Recent trends show how companies in the UAE are rethinking payroll systems to attract top talent, improve team satisfaction, and stay ahead in a very competitive market.

Let’s talk about some of the new trends changing the way we manage and pay salaries!

1. Adapting to changing needs with "on-demand pay"

Imagine accessing your salary whenever you need it instead of waiting for the end of the month. That’s the promise of on-demand pay, also called Earned Wage Access (EWA). This system allows team members to withdraw part of their salary for the days they’ve already worked, before payday.

Most European countries like Spain and France have gone a step further, making it mandatory for companies to offer this benefit. It’s seen as a way to reduce turnover and attract top talent, especially among younger team members who expect faster access to their money.

Here’s how it works:

• Access is based on preset terms, like a maximum number of withdrawals per month or a capped percentage of earned salary.

• On-demand pay platforms are integrated into payroll systems to manage this without disrupting the company’s cash flow.

Businesses are discovering the benefits too. Offering financial flexibility builds trust and promotes financial wellness. However, this approach also introduces complexities. Payroll teams will need to manage multiple payout cycles, such as temporary team members being paid at the start of the month and regular payouts at the end.

The challenge: While it’s a great step forward, financial education often doesn’t keep pace. Without proper guidance, there’s a risk of overspending or mismanaging early withdrawals.

2. UAE's big step into the future with crypto salaries

Cryptocurrency has officially entered the payroll scene in the UAE. In a recent case, the Dubai Court of First Instance ruled that paying salaries in cryptocurrency is valid under employment contracts. This decision reverses a previous ruling in 2023 where such payments were denied due to the lack of a clear valuation.

This means businesses now have the option to pay in digital currencies, as long as the terms are outlined in contracts and valuations are clear. While the concept is exciting, crypto salaries also bring new responsibilities:

• Clear exchange rate definitions to avoid disputes.

• Educating teams on the risks and benefits of receiving payment in cryptocurrency.

For businesses in the UAE, this development positions them as forward-thinking and innovative. Crypto payments might still be niche, but they’re gaining traction as more companies explore their potential.

3. Time for change: payroll for contractors, freelancers, interns, and part-timers

Freelancers, interns, part-timers, and contractors often get left out when it comes to streamlined payroll systems. Most traditional platforms are designed for full-time, salaried team members, leaving others with clunky, manual processes.

However, platforms like Cercli are addressing this gap by creating flexible solutions for all types of workers. Whether it’s a one-time payment for a freelancer or a recurring schedule for part-timers, these tools make life easier for both businesses and team members.

Why does this matter?

• Businesses rely more on flexible workforces, and their payroll systems need to keep up.

• Consistent and timely payments build trust and loyalty, even for short-term roles.

Flexibility is the future.

From on-demand pay to crypto salaries and improved systems for flexible workers, payroll is changing at a fast pace and we need to meet the needs of a modern workforce that values speed, transparency, and choice.

For businesses, the message is clear: staying competitive means rethinking how salaries are handled. By embracing these trends, you can attract top talent and also foster trust and loyalty in your teams.

So, what’s your take on these changes? Are you ready to adapt?