ArcHR

ArcHR

HR and Payroll Software for Professional Services Firms in UAE.

WPS Salary Information File (SIF) export. End of service gratuity (EOSB) — Federal Decree-Law No. 33 of 2021. EOSB visible for every senior employee. Performance goals built in. Air ticket benefits managed.

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ArcHR HR dashboard overview
UAE professional services firms face high end-of-service gratuity liability for long-tenured consultants — accrued on basic salary only, excluding annual performance bonuses. Bonuses included in WPS when paid monthly must still be separated from EOSB calculations. Expatriate advisors often receive air ticket and home-leave benefits requiring tenure-based tracking. DIFC and mainland consultancies need running gratuity accrual visible to partners before senior exits. Experienced hires on six-month probation require tracked end dates and automatic confirmation to permanent status with full leave accrual. Client-site consultants need team-level leave blackout periods to prevent staffing gaps during critical client engagements. Profit share and equity distributions remain excluded from gratuity calculations under standard MOHRE employment contracts for partners and senior advisors on payroll records and audit files.

· by ArcHR Compliance Team

🇦🇪 UAEWPS — Wage Protection System

WPS Salary Information File (SIF) export. End of service gratuity (EOSB) — Federal Decree-Law No. 33 of 2021. EOSB visible for every senior employee. Performance goals built in. Air ticket benefits managed.

ArcHR is built for UAE professional services firms with 5 to 200 employees — Small, highly skilled teams — consultants, lawyers, accountants, designers — with higher salaries, performance bonuses, and travel benefits.

app.archr.com
ArcHR HR dashboard overview

EOSB liability is high — long-tenured senior employees with large basic salaries

Air ticket and annual leave benefits are standard — loan management for senior staff

Performance goals and annual appraisals are HR expectations at this company type

WPS for bonus-inclusive payroll structures (bonuses are not included in EOSB calculation)

Compliance scenarios

High EOSB liability for long-tenured consultants and partners

A Dubai management consultancy employs senior advisors with 8–15 years tenure and basic salaries exceeding AED 35,000 monthly. End-of-service gratuity accrues on basic salary only but reaches six-figure amounts for long-serving partners approaching retirement or exit. Firm administrators who calculate EOSB in spreadsheets at departure routinely dispute amounts with departing consultants. ArcHR displays running gratuity accrual per employee monthly, projects liability at any future exit date, and generates board-ready EOSB reports for partnership planning and audit reserves.

Annual performance bonuses excluded from gratuity but included in WPS

Professional services firms in DIFC and mainland Dubai pay annual performance bonuses separate from monthly basic salary. Federal Decree-Law No. 33 excludes bonuses from EOSB calculation, but bonuses paid monthly must appear in WPS transfers when contractually obligated. Finance teams conflating bonus and basic in gratuity calculations overpay significantly on senior exits. ArcHR separates bonus from basic in payroll configuration, accrues EOSB on the correct base, and includes declared bonuses in WPS when paid through approved channels.

Air ticket and annual leave benefit tracking for expatriate professionals

Consultancies and law firms routinely offer annual air ticket allowances and home-leave entitlements as part of expatriate compensation packages. Tracking ticket eligibility, accrual cycles, and cash-versus-ticket election per employee in email threads causes disputes at year-end. ArcHR manages air ticket benefit schedules, tracks eligibility based on tenure and contract terms, and records whether the employee received a ticket or cash equivalent — linked to the employee profile alongside leave balances and payroll.

SME example

Vertex Advisory, a 28-person Dubai consultancy, discovered a departing senior manager was owed AED 145,000 in EOSB — nearly double what the partner estimated. ArcHR had been accruing gratuity correctly for three years, giving the firm time to reserve the liability. Performance bonuses are now excluded from EOSB automatically, annual air ticket benefits track per consultant, and the firm uses built-in performance goals instead of a separate subscription tool.

Workforce profile

Small, highly skilled teams — consultants, lawyers, accountants, designers — with higher salaries, performance bonuses, and travel benefits.

EOSB visible for every senior employee. Performance goals built in. Air ticket benefits managed.

5+ years

average tenure

in professional services — EOSB liability compounds significantly

360°

performance review

built into ArcHR — not a separate Lattice subscription

Frequently asked questions

Are annual performance bonuses included in UAE gratuity calculation?

No. UAE gratuity is calculated on basic salary only — performance bonuses, commission, and allowances are excluded. ArcHR separates these components in payroll configuration and calculates EOSB on the correct base.

Are equity or profit-share payments included in UAE gratuity for partners?

Profit share and equity distributions are generally excluded from EOSB calculation, which applies to basic salary under employment contracts. Partners on different contractual arrangements may have varied treatment. ArcHR calculates gratuity based on the declared basic salary in the MOHRE employment contract, excluding profit share and discretionary distributions.

How do professional services firms manage probation for experienced hires in UAE?

Experienced consultants are often hired on six-month probation with negotiated notice periods. ArcHR tracks probation end dates, applies 14-day termination notice rules during probation, and automatically transitions employees to confirmed status with full leave accrual — preventing accidental probation extensions that affect EOSB entitlement.

Can ArcHR replace a separate performance management tool for consultancies?

Yes. ArcHR includes performance goals, OKR tracking, and 360-degree feedback alongside payroll and EOSB management. Professional services firms eliminate the cost and data silos of separate tools like Lattice while keeping performance review data linked to the employee HR record.

What leave policies should UAE consultancies configure for client-site consultants?

Consultants on client-site assignments accrue standard annual leave but may face restrictions on concurrent leave during project delivery. ArcHR supports team-level leave blackout periods, approval chains by practice area, and pro-rata accrual for part-time advisors — preventing staffing gaps during critical client engagements.

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