04:05 GLOBAL PAYROLL
ISSUE 8 I 2025
What Does Our Profile Picture Say About Us?
BEHIND THE PAYSLIP Real Stories from Payroll Heroes
US PRACTITIONER’S PERSPECTIVE On Global Payroll Outsourcing
CONSULTANCY CONTRACTS IN AFRICA The Risks of Engaging Staff
04:05 FOREWORD
Keeping Global Payroll Professionals Busy in 2025
But whatever the trending topic or approaching challenges, the payroll industry will continue to live up to its own standards of excellence, maintaining professionalism to ensure everyone gets paid. Helen Dooley’s brand new series, Behind the Payslip , will be telling some of those payroll stories - some of your stories - in the months ahead! In 2025 we’re looking forward to spending time, sharing knowledge and celebrating achievements with our industry friends, old and new, at the GPA Summit, the annual Global Payroll Awards and forthcoming international events. Exciting things are coming in the first quarter and we can’t wait to share all our plans but, for now, we would like to start by introducing the new look 04:05 . In our cover story, Ayşe Nazmiye Uça asks us to consider the faces we present to the worl d . The GPA is proud to say we are putting our best face forward this year!
P ayroll Professionals were kept on their toes in 2024 with evolutions in technology, tech hiccups, global political change and the ongoing demands of keeping pay timely, accurate and compliant for employees worldwide. The frenetic pace of change hasn’t eased off with the dawn of the New Year. 2025 is another year of political change globally and the domino effects will definitely keep Global Payroll Professionals busy. We expect AI and employee experience to remain hot topics and, with talent retention as an ongoing priority, these subjects should be at the forefront.
Melanie Pizzey Melanie Pizzey CEO Global Payroll Association
04:05 I 03
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 CONTENTS
14 GLOBAL WHAT DOES OUR PROFILE PICTURE SAY ABOUT US? Ensuring that our representation matches who we are in reality 24 MIDDLE EAST PAYROLL COMPLIANCE FOR EXPATRIATES & GCC NATIONALS IN THE UAE Regulations that apply to expatriates 34 AMERICAS U.S. PRACTITIONER’S ENGAGING STAFF ON CONSULTANCY CONTRACTS How consultancy contracts work across Africa 46 GLOBAL MERGERS AND ACQUISITIONS Why Payroll, HR, and Finance Leaders Should Care 52 EMEA OFF-PAYROLL WORKERS IN THE UK Understanding the tax rules PERSPECTIVE On global payroll outsourcing 40 AFRICA THE RISKS OF
BETWEEN THE LINES Nathan North’s mission for payroll
08
04 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
28 GLOBAL PAYROLL TRENDS TO WATCH IN 2025 AI, Skills Development, and Pay Transparency
20 GLOBAL BEHIND THE PAYSLIP Real stories from payroll heroes
64 GLOBAL CROSS-BORDER PAYROLL PROCESSING Payroll providers face a range of challenges
REGULARS
74 GLOBAL GPA TRAINING Join our experts as they take you through the process of running payrolls in different countries 62 GLOBAL DIARY OF AN HR MANAGER
72 APAC ASIA BRIEFING Overview on Asia news 76 GLOBAL FIND A VENDOR A comprehensive list of suppliers to the global payroll industry
07 GLOBAL NEWS Interactive global
payroll news 70 GLOBAL
GPA WEBINARS The latest global and in-country payroll topics and trends
The Global Payroll Association , 49 Greek St, Soho, London W1D 4EG. Tel: +44 (0)203 871 8870 Melanie Pizzey - CEO and 04:05 Executive Editor: melanie@globalpayrollassociation.com Rich Robins - 04:05 Designer: hello@megandmore.co.uk Hayleigh Blinkhorne - events/vendors/advertising: hayleigh@globalpayrollassociation.com General enquiries/mentor scheme/training : - info@globalpayrollassociation.com Michael Baer - US contributor: mike@globalpayrollassociation.com Nilufer Gul - GM APAC/Australia: nilufer@globalpayrollassociation.com Tel: +61 (0)413 749 714 CONTACTS
04:05 I 05
ISSUE 8 GLOBAL PAYROLL MAGAZINE
Payroll as a career: Insights from senior payroll professionals Payroll as a career: Insights from senior payroll professionals
Download the white paper Download the white paper
Global Payroll News Stay updated with global payroll trends, automation, compliance, AI integration, financial wellness, accurate payments, and addressing wage discrepancies.. 04:05 GLOBAL NEWS
UK
Canada
Slovakia
USA
Neonatal Care Leave and Pay Read more...
Government to provide progress Read more...
10% of workers earned less Read more...
Jobs and pay remain ‘secure’ Read more...
Japan
Saudi Arabia
Australia
Syria
Bank executives take pay cuts Read more...
Stricter work visa rules Read more...
‘Early Childhood Education Read more...
Government will raise salaries Read more...
Egypt
VIEW OTHER NEWS FROM AROUND THE WORLD EMEA APAC AFRICA AMERICAS MIDDLE EAST GLOBAL
Global
Liberia
New social protection package Read more...
Klasha launches service Read more...
Lower House mismanagement Read more...
04:05 I 07
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 INTERVIEW
Nathan North is a top-ten global payroll thought leader* and board member of the Global Payroll Research and Development Institute (GPG ), an organization that is pushing for credible payroll standards, called ISO standards , that can be applied worldwide to payroll operations. Between the Lines
H e’s been in global payroll and HR for some 25 years, and is described as an architect of advanced technology solutions that optimize and improve payroll processes, ensure security, and modernize
traditional payroll activities with state-of- the-art dashboards and global reporting. Nathan has processed payroll in approximately 140+ countries and managed teams that processed payroll in 170 countries.
[ Editor’s note: The standards are being developed through the consensus of global subject matter experts and stakeholders by the International Organization for Standardization , or ISO. According to the University of Buffalo’s Center for Industrial Effectiveness, the group provides a broad spectrum of organizations with guidelines to consistently achieve universally recognized standards across numerous practices.] This Between the Lines feature has been edited for clarity.
08 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
GPA: What drives you to work to develop universal standards for payroll operations? Nathan: It would be a big benefit, especially for multinational organizations, to have ISO standards. For example, let’s say you operate in
100 countries. You could be in a situation where you’re getting different types of reports from each of the vendors and even internally, but have nothing to tie them into your system. You have to hire people to do that for you.
Having ISO standards for payroll reports would give you the option, if you want, to hire directly a local vendor, because the reporting will be standardized. You could import those files directly instead of having to manually manipulate reports.
04:05 I 09
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 INTERVIEW
Internally, there will be standardization of how things are communicated with HR, with IT, with the legal team, talent acquisition and others. This will give payroll credibility to show anyone we deal with why they need to provide data in a certain way: because it will be the ISO standard. We’ve had incredible cooperation in doing this from global payroll leaders, from vendors, and also from the payroll associations around the world. If anyone is interested in this effort to standardize payroll processes, email iso@payrollgeeks.world. Also, one of my missions that I really want folks to understand is that as an industry we are good at tactical and operational points, but we suffer and we’re not as good in the compliance and the strategic side of payroll. I’ve written about going from an operational mindset to a true global payroll strategist, and how to make that move.
Also, one of my missions that I really want folks to understand is that as an industry we are good at tactical and operational points, but we suffer and we’re not as good in the compliance and the strategic side of payroll.
GPA: What projects are you involved in? Nathan: After some 25 years of working in global HR and then mostly payroll, it is a new experience helping create an organization whose main focus is to build out an ISO program for the technical disciplines have ISO standards. What this means is internally when folks want to get their ISO certification for HR, for example, you have a line of HR items that you must meet in order to be certified. For IT, you have a list of IT and technology items that you must payroll industry. HR, IT, and other
meet. But there’s nothing yet for payroll. So, I’m pushing for that. I’m also advising on payroll implementations in two countries, one in the Middle East, and one in Asia. GPA: How have you used technology to improve operations? Nathan: I helped develop and implement RPA technology; robotic process automation for global payroll applications. We started out with France because France was the hardest country and I wanted to see if this could really work. I oversaw a project
10 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
that, working with a tech team, created bots using RPA technology, automating the tedious parts of payroll from the entry of data all the way to creating bank files and general ledger files. It was truly an end-to- end RPA program and once we got it to work in France, we implemented the program for 13 countries. Part of the RPA program that I created validated the payroll as well. It would flag if there was
an issue to alert that there was an input that was missing. From a compliance side of things, for example, it would flag if for some reason the overtime rate that was being used was incorrect. One issue is clear: in my consultations, I did a lot of optimization of systems and the reason was because the clients were not utilizing all of the tools that the system had available. The users of payroll programs don’t even
know what exists within their system until someone takes a look at their system and starts asking them questions. Do you utilize tool A, B, and C? I feel it’s one of the big challenges within the payroll industry. This is because, in my experience, I’ve seen a lack of documentation of payroll processes in and out of the system. Without process and data mapping, there is no recognition of where people can effectively use the system that they’ve bought. Going in as a consultant, vendors will supply implementation notes and then you’ll see what you’re not using. Maybe you don’t need it right now, but you could use it down the road. There are a lot of companies that don’t have that. They copy and paste what they originally had instead of taking the opportunity to really optimize their processes by utilizing a new system.
If you can demonstrate that you have a strategic mindset and you’re able to solve problems and create solutions within your own function, then, you will be asked to join meetings that have nothing to do with payroll and be able to provide input on possible solutions that have nothing to do with payroll.
04:05 I 11
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 INTERVIEW
GPA: How did you keep up with developments to ensure your operation was compliant and not exposed to penalties? Nathan: There are a lot of tools in the market today that can really help payroll folks, especially on the global side. There are the government sites. But one of the things that we forget about is that if you want to look at the legal tools we have to look at what would an attorney use to research and track an issue. We in payroll need to have an open- source mindset to share tools and share different things, because we don’t know what exists or we’re looking in the wrong areas. GPA: What have been your most important impactful work relationships with those not in payroll? What were their roles? Nathan: The first one is Human Resources. Then, legal, finance and accounting. Of course, the IT team or global
applications and their tech team are important. I’ve found working with the internal communications team very helpful, not only for communications for external items but also internal communications. I’ve actually used the communications team to work with me on how I can develop a storyline for someone at the C-level to gain a key project sponsor. GPA: How do you see the roles of those in global payroll evolving? Nathan: In payroll, we’re introverts at heart. So, it’s very hard for us to really push ourselves out there. There’s always a talk of the seat at the table, taking the seat. If you can demonstrate that you have a strategic mindset and you’re able to solve problems and create solutions within your own function, then, you will be asked to join meetings that have nothing to do
with payroll and be able to provide input on possible solutions that have nothing to do with payroll. Do you really understand the business that you’re in? So you really need to go beyond payroll. Get involved with the associations around the world versus looking at just one association. Networking is so important within payroll. Getting to know and network with other payroll leaders, regardless of their businesses they support is important. I didn’t look at just big logos. I looked at the market as a whole because you want to lift all the market levels up. It’s not just about the larger organizations. And remember: Payroll Powers the Economy! *Top Payroll Thought Leaders to Follow
12 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
04:05 GLOBAL
What Does Our Profile Picture Say About Us? On social media, it’s common for people to hold onto images that reflect how they wish to be seen, rather than how they currently are. Some might choose photos from years ago, seeing themselves as they once were and believing there’s little difference between their past and present selves. It’s a way of holding onto a version of themselves that feels timeless. H owever, this often creates a gap between how we appear online and how we’re perceived in real life. For others, the moment of recalibration for anyone encountering the disconnect, as we instinctively adjust our expectations to match reality. This duality is reminiscent of the themes explored in Oscar Wilde’s “The Picture of Dorian Gray”. In the novel, Dorian’s portrait becomes a reflection of his true opposite might be true— they frequently update their self-perception but overlook updating their profile picture. When these two identities don’t align, it can lead to a
Ayşe Nazmiye Uça is the Founder and Chairman of the Turkish Payroll Association and established Turkey’s first payroll outsourcing company 26 years ago. Her company, Datassist, leads the market in technology-centered payroll services, catering to Fortune 500 companies and major Turkish corporations. Datassist excels in Regulation Technologies (RegTech) and continues to expand through strategic investments and business partnerships, aiming to offer comprehensive services in an evolving market. In 2024, Ayşe ranked 20th among Turkey’s top 100 female founders by Fast Company magazine, based on company turnover. Her life purpose is to shape organizations, create new opportunities, and guide her employees toward achieving their career goals. 14 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
04:05 I 15
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 GLOBAL
self, showing the toll of age and his moral corruption, while his outward appearance remains youthful and perfect. Similarly, our profile pictures can act as modern-day portraits, showcasing an idealized version of ourselves that may not match who we are today. This gap between appearance and reality raises questions about authenticity, self- perception, and how we choose to present ourselves to the world. The Corporate Shop Window Our profile picture should, of course, represent the best version of ourselves. For instance, LinkedIn, as a professional social media platform, acts as our shop window. Especially with remote work and global networking, this is where people first “see” us. Using a profile picture that doesn’t reflect who we are now fails to represent us. Sure, our younger selves were beautiful, but what about the experience we’ve gained, and the challenges we’ve overcome? These are etched into the lines on our
faces and make us appear more mature and credible. As I write this, I glance at my own LinkedIn profile picture—it looks at least four years old. My Facebook picture, however, still displays a protest message against the noisy minibuses in the Prince’s Islands of Istanbul. There have been times when I’ve met someone in real life after seeing them on LinkedIn and felt utterly surprised. This highlights how important it is for our digital identity to align with our physical one. On professional platforms, ensuring that our representation matches who we are in reality reinforces trust and authenticity. It’s also crucial to distinguish between personal and corporate social media. On
Instagram, sharing hobbies and interests through photos makes sense. On WhatsApp, it’s a different story altogether. A profile picture appropriate for apartment neighbor groups or school parent chats might not work when WhatsApp inadvertently becomes a corporate tool, leaving us exchanging work messages under photos of us with our pets or family. Each platform has its own language and purpose. Choosing profile pictures that align with these purposes helps manage our digital presence effectively and
professionally. Appearance and Perception
Your profile picture is not just an image; it reflects your personality, style, and values. When people
This gap between appearance and reality raises questions about authenticity, self-perception, and how we choose to present ourselves to the world.
16 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
Transform your global payroll experience with the award winning UKG One View™.
Australia’s first Always On Compliance solution.
Supporting some of Australia’s largest employers across multiple industries.
100+ payroll reviews completed in 7 years
300k+ employees reviewed
$70 billion of employee payroll data reviewed
Learn more
100% of reviews have found non- compliance
3. Once a Year
see your profile picture, they form their first impression of you, and these impressions tend to stick. But how much can one photo really convey? For example, a smile can communicate warmth and approachability, while a serious expression signals professionalism and gravity. That’s why it’s important to thoughtfully consider the message your photo conveys and update it periodically for both professional and personal accounts. LinkedIn Profile: Your Personal Brand Your LinkedIn profile picture is a key part of your personal brand, forming the first impression potential employers, collaborators, or clients will have of you. Maintaining and enhancing your personal brand through LinkedIn can open up new career and business opportunities. An outdated photo might suggest you’re no longer active in your field—an impression no one wants to give in 2025.
Gone are the days when not sharing a photo created an air of mystique. Now, it just seems unprofessional. And while avatars might be fun, they often come across as juvenile. When to Update Your Profile Picture There’s no strict rule about how often to update your profile picture, but here are some indicators that it might be time for a refresh: 1. Your Appearance Has Significantly Changed If you’ve changed your hairstyle, lost or gained weight, or undergone other significant physical changes, it’s a good idea Focus or Interests Have Shifted If you’ve changed industries or roles, your photo should reflect the professional image you want to convey. For example, moving from a corporate position to a creative field might call for a more relaxed, expressive photo. to update your profile picture to match your current look. 2. Your Professional
Even if your appearance hasn’t changed much, reviewing your profile picture annually is a good habit. A new photo keeps your profile looking fresh and gives you a chance to reassess how you present yourself professionally. No Longer Represents You Well If your photo feels outdated, too casual, or misaligned with your current career goals, it’s time for a change. Your LinkedIn profile picture should reflect the professional you are today. Like Dorian Gray’s portrait, our profile pictures can tell a story—not just of how we look but of how we want to be perceived. Updating them regularly helps ensure that the story we’re telling aligns with the person we’ve become. 4. Your Current Photo
04:05 I 19
ISSUE 8 GLOBAL PAYROLL MAGAZINE
BEHIND THE PAYSLIP
Real Stories from Payroll Heroes
20 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
Let’s talk about you - yes, you! The person behind the buttons, the machines, the software. Payroll doesn’t just happen; it’s made possible by professionals like you who work tirelessly to make sure everyone gets paid on time, every time. P ayroll isn’t just numbers; it’s people. It’s making sure the work gets done despite tight deadlines, unexpected hurdles, and the inevitable pressure that comes with handling one of the most critical functions in any organisation. We see you, and we’re here to tell your stories - real stories that capture the heart of payroll. Welcome to Behind the Payslip: Real Stories from Payroll Heroes. These are true accounts of payroll
and finding solutions that make a real difference. She considers storytelling an important part of understanding others and delivering the best outcomes. At CR Payroll, Helen works alongside a team of highly skilled senior payroll professionals, united by their commitment to safeguarding clients from payroll disruptions. Together, they focus on establishing robust payroll contingency plans to mitigate risk and ensure that clients are protected from potential payroll curveballs. Helen’s expertise, combined with the team’s dedication, helps clients navigate the complexities of payroll with confidence and peace of mind.
Author : Helen Dooley Helen Dooley is the Chief Commercial Officer at CR Payroll, bringing decades of experience and a genuine passion for client support and problem-solving. Over the course of her career, Helen has developed a strong ability to identify the root causes of challenges and provide tailored solutions that truly meet the needs of her clients. Her dedication to understanding and addressing client concerns has been a constant throughout her professional journey. Helen believes in the power of listening and the value of gaining different perspectives. She has always found joy in working with clients, listening to their stories,
Why We’re Telling These Stories
04:05 I 21
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 GLOBAL
professionals who get the job done - what’s your norm might be someone else’s above and beyond – it’s all about the perspective you’re coming from. Through the giggles, grit, laughs, tears, rants and rages, these stories capture the reality of life behind the production of the payslip. This is the first in a series of articles dedicated to sharing your real stories from the frontline of payroll. While names have been removed and some details have been adjusted for confidentiality, the heart of each story remains true. And here’s the thing: we want to hear from you, too. What’s your standout Whether it’s a festive save, a clever workaround, your standard or a time you overcame impossible odds, share it with us. Let’s celebrate the incredible work payroll professionals do every day. To kick off our series, we’re starting with an oldie but a goodie - a classic tale of payroll moment? Or what’s your norm?
payroll heroics that proves no deadline is too tight and no challenge too big when it comes to getting the job done. The Christmas Overtime Rescue: Payroll to the Rescue You know what December is like in payroll - everything speeds up, deadlines are tighter, and the pressure is through the roof. Now imagine this: 56 employees are set to miss out on their overtime pay in December because their managers didn’t submit the details on time.
work. In this case, a few departments dropped the ball, leaving dozens of employees at risk of not getting paid until January. Can you imagine the fallout? For those 56 people, it wasn’t just a delay in pay - it was potentially no overtime to cover festive expenses, no extra money for gifts or celebrations, and an added layer of stress during what should be a joyful time of year. But payroll didn’t let it happen. When the missed submissions came to light, the team could have stuck to the rules, said it was too late, and moved on. Instead, they saw the human side of the situation - this was about more than just numbers on a (missing!) spreadsheet.
That’s exactly what happened to one payroll team. You
know the scenario - the early deadlines to accommodate Christmas, the endless juggling of last-minute submissions, and the sheer volume of
Send your stories confidentially to helen.dooley@crpayrollsolutions.com, and let’s shout them loud. Together, we can spotlight the dedication, resilience, and ingenuity that define the payroll profession.
22 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
So, what did they do? They came in on a Saturday. Yes, their weekend was sacrificed, but they weren’t going to let those 56 people down. The team rolled up their sleeves, worked tirelessly to process faster payments, and ensured every affected employee got their overtime in December’s pay. Did You Know Payroll Professionals Do This? This isn’t a one-off story. If you’re in payroll, you already know how often these moments come up - times when the rules say no, but your heart says yes. Because payroll isn’t just about accuracy and deadlines (though you consistently nail those too). It’s about problem- solving, caring for employees, and stepping up when it matters most. At the heart of every successful payroll operation is the payroll team. Whether your team consists of peers within your organisation or across your network, it’s the collective effort of you and them that makes the
magic happen. Payroll professionals don’t just work in isolation; they pull together, sharing both achievements and challenges, offering support, and pushing each other to provide their personal best. Think about it: every payslip tells a story. It might be a single parent breathing easier because their overtime came through, or a new employee who feels valued because their pay was perfect on day one. And who’s behind that? You. Payroll professionals are the unsung heroes of every organisation, and this story is just one example of the lengths you go to. Looking Ahead - What’s Next? December isn’t the only time payroll challenges crop up, right? There are always new systems to learn, new legislation to keep up with, and, of course, those inevitable curveballs. As we move into the second month of the New Year, now is the perfect time to start
thinking about how to plan for 2025 and ensure your payroll team has the resources, support, and recognition they need to thrive. What will next Christmas look like for your team? How can January set the tone for a smoother, more supported year? What will 2025 look like for you? Remember - We Want to Hear Your Story Remember to send your stories confidentially to helen.dooley@ crpayrollsolutions.com and you could be featured in the next edition of Behind the Payslip: Real Stories from Payroll Heroes. Let’s shine a light on the people who keep the wheels turning and the payslips rolling. Because payroll is never just numbers - it’s the people behind them who make it work.
04:05 I 23
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 MIDDLE EAST
According to the UAE Population 2024 statistics by Global Media Insight , 88.50% of the UAE’s population comprises expatriates. With its dynamic job market and attractive living standards, UAE stands out as a hub for international business and expatriate employment. Payroll Compliance for Expatriates & GCC Nationals
Author: Priyanka Ganesh Priyanka Ganesh is a seasoned professional specializing in global payroll compliance across various Middle Eastern countries. Currently serving as a Senior Business Analyst at Akrivia Automations Private Limited, she focuses on statutory compliance and payroll regulations across GCC regions. With a deep understanding of statutory compliance
H owever, navigating the complexities of payroll compliance in this unique environment can be challenging, especially for expatriates. This article aims to shed light on the key components of payroll compliance for expats and GCC nationals in the UAE. UAE Key Laws and Regulations Governing Payroll In the UAE, payroll compliance becomes particularly crucial due to its dynamic labour market,
which contains a significant proportion of expatriate workers. The Ministry of Human Resources and Emiratisation (MOHRE) oversees these regulations, ensuring fair treatment and timely payment of wages. MOHRE plays a pivotal role in enforcing labour laws, including those related to payroll. Additionally, the Central Bank of the UAE monitors financial transactions related to salary payments through the Wage Protection System (WPS), which mandates that salaries be paid electronically via approved
requirements, she specializes in identifying process gaps and implementing improvements by adhering to local
laws and regulations, effectively serving the needs of businesses.
24 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
financial institutions to ensure guidelines are followed. The following are the specific considerations and regulations that apply to expatriates: Key Considerations for Expatriates 1. Visa and Work Permits: The employers are responsible for obtaining valid work permits and visas for their hired foreign workers. There are 10 types of work permits that are issued to expatriates based on the need of the employment. For issuing the initial work permit, employers are required to bear the cost and submit various documents, including a valid passport, academic qualifications etc. The UAE allows expatriates two-month-long work permits until their employer finalises the residence permit. Additionally, Expats can’t get a new work permit if they end their contract early, don’t give proper notice, fail to meet termination requirements, or are terminated for poor performance. As per Article 60 of Federal Decree-Law No. 33 of 2021, using work permits for purposes other than those issued will result in a fine between AED 50,000 and AED 200,000. 2. Social Security Contributions and Benefits: Unlike Emiratis who must contribute
to the General Pension and Social Security Authority (GPSSA), expatriates do not have this obligation. Instead, they may be covered by private health insurance, housing allowances etc. provided by their employers. For free zones like Dubai International Financial Centre (DIFC), expatriate employees will contribute to DIFC Employee Workplace Savings (DEWS) scheme, with employers making monthly contributions on basic salary as per DIFC Law No. 4 of 2020. If the expat belongs to GCC nationality, then they will be covered under GCC Insurance Protection Extension Program. Both the employee and employer must share the contributions according to the rates in the employee’s home state. If the employer’s share exceeds the percentage stipulated in UAE, the excess amount gets deducted from the employee’s wage. 3. Taxation: One of the UAE’s attractive features for expats is the absence of personal income tax. However, expats should be aware of their home country’s tax obligations.
4. Gratuity: Foreign workers who have completed a year or more in
continuous service are entitled to end-of-service benefits proportional
04:05 I 25
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 MIDDLE EAST
to their period of service. Unpaid absence days are excluded from the calculation. The gratuity is calculated based on the basic wage as follows: A wage of 21 days for each year of the first 5 years of service. A wage of 30 days for each year exceeding the initial 5 years. MOHRE has also introduced an Alternate End of Service Benefit Scheme as per Cabinet Resolution No. (96) of 2023. 5. Repatriation Expenses: Employers are responsible for bearing the repatriation expenses of the worker to the agreed-upon location, unless the worker has joined another employer, or the contract termination was due to the worker’s actions. In such cases, the worker bears the repatriation costs. Addressing Common Challenges and Effective Solutions Even with the regulatory framework in hand, the application often presents unique challenges. Let us explore some of these common obstacles and discover practical solutions. 1. Cultural and Legal Differences: Expats may face challenges due to cultural and legal differences. Employers should provide cultural sensitivity training and clear communication to help expats adapt. For instance, understanding
local customs and business etiquette can significantly ease the transition for new employees. 2. Awareness of Local Laws & Rights: Miscommunication or lack of awareness about local labour laws can lead to disputes. Employers should provide clear information about payroll processes and employee rights . 3. Compliance Risks: Compliance risks with expats, such as incorrect salary calculations and delayed payments may occur. To mitigate this the employer may opt for payroll software systems. 4. Currency Conversion Issues: The Monthly Contribution Wage of GCC nationals must be accurately converted to their home country’s currency. Employers should use reliable financial tools to ensure accurate deduction and compliance. Best Practices for Employers Having navigated the common challenges, it is crucial for employers to implement best practices that ensure compliance. Here is a list of strategies that can help: Conduct periodic payroll audits to recognise and rectify compliance issues. Invest in training HR and payroll staff on compliance matters. This
26 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
ensures that the staff stay updated on the latest regulations and the team is well-equipped to handle payroll processes accurately. Implement a robust and reliable payroll software to automate the salary calculations, track contributions, and ensure compliance with WPS regulations. Clearly communicate payroll policies to employees. This includes details on salary payment schedules, benefits entitlements, and procedures for addressing grievances. Conclusion As the UAE continues to attract a diverse workforce, payroll compliance
for expats in the country requires careful attention to local laws and regulations and the employer plays a crucial role here to ensure that the expatriates and GCC nationals working in the UAE are adhering to the legalities. The country’s visa requirements and regulations regarding social security contributions must be understood and implemented by the employers. This will not only avoid legal pitfalls but also enhance employee satisfaction and retention, ultimately contributing to the overall success of the business.
04:05 I 27
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 GLOBAL
Payroll Trends to Watch in 2025: AI, Skills Development, and Pay Transparency In today’s ever-changing global business environment, the imperative to be more efficient and agile is reshaping the expectations placed on payroll, HR and finance teams. The scope of their responsibilities is broad, and their role in driving strategic, business, and shareholder value has never been more critical.
Author: Gautam Sukumar
Gautam Sukumar is the Chief Operating Officer at Strada. With over a decade of experience within the payroll and HR technology industry, he is known for his focus on operational excellence and growth. Gautam is passionate about empowering teams and leveraging technology to drive innovation and his approach emphasizes collaboration, continuous improvement, and delivering exceptional value to clients. A s we look ahead to 2025, payroll professionals continue to face a landscape transformed by technological advancements and evolving workforce expectations. Key trends such as artificial
1. Getting data in order While advancements in technology have significantly transformed payroll processes, many departments are still navigating the complexities of legacy systems and manual workflows. In some cases,
intelligence (AI), skills development, and pay transparency will play pivotal roles, empowering payroll teams to drive efficiency, foster trust, and contribute meaningfully to business success in an increasingly interconnected world.
28 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
04:05 I 29
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 GLOBAL
critical knowledge resides with individuals, which can create vulnerabilities when it comes to ensuring continuity and efficiency. It’s not uncommon to find systems and practices that have served well in the past but now require modernization to meet business environment. For instance, our 2024 Company Payroll Complexity Report found that 51% of respondents still use spreadsheets to handle payroll processes while 19% use manual or paper-based methods. This outdated approach breeds inefficiencies, increases the risk of costly errors, limits scalability, exposes businesses to compliance issues, the demands of today’s dynamic
and creates potential employee retention challenges. The risk of getting it wrong is
compliance easier. There are between 500 and 1,000 unique pieces of data related to each employee, so bringing all this information together can reveal potential opportunities to fuel the company’s overall performance – something especially important as we move into a new year of challenges and transition. 2. Harnessing artificial intelligence With centralized data establishing a single source of truth, payroll leaders can leverage artificial intelligence opportunities that extend far beyond current applications. Those who have been using cloud-based solutions for years are in the best position to capitalize on AI developments. If 2024 was the year to discuss AI, 2025 will be the year to put it into action. From streamlining recruitment and onboarding to optimizing payroll management and automating repetitive
significant; for example, just two payroll errors are enough to prompt 49% of employees to start job hunting. With only 37% of business leaders trusting the data and analysis provided by HR departments, it is crucial that leaders regain control of their data to win back C-level trust. Upgrading and globalizing payroll and HR systems can future-proof operations by enhancing accuracy and streamlining processes. By integrating data into a single source of truth, payroll teams can minimize errors, reduce tedious manual data entry, and make regulatory
Those who have been using cloud- based solutions for years are in the best position to capitalize on AI developments. If 2024 was the year to discuss AI, 2025 will be the year to put it into action.
tasks, AI will act as a gateway for future
30 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
“
As we look ahead to the ongoing evolution of the workplace in 2025, ensuring payroll professionals feel comfortable with change will be crucial.
strategic decision-making. AI-driven analytics will also play a key role in identifying skills gaps and training needs, thereby supporting employee growth and productivity – a sure way to boost retention in a challenging labor market. In fact, our Bridging the gap: From good to great in Payroll report found that 95% of respondents recognize the value of AI in freeing up time for innovation, improving reporting, reducing errors, and adapting to change quickly. However, many businesses are still
hesitant to implement AI, so the work to be done in 2025 is to equip payroll leaders with knowledge, frameworks and the right tech stack so they can effectively integrate it within their organizations. 3. Emphasis on skills development The rapid pace of technological change, like the rise of AI as part of day-to-day administrative tasks, along with the influx of a new generation entering the workforce requires continuous skills development. Payroll departments will need to
prioritize upskilling and reskilling initiatives in 2025 to stay ahead of the curve and foster a culture of continuous improvement and innovation. As we look ahead to the ongoing evolution of the workplace in 2025, ensuring payroll professionals feel comfortable with change will be crucial. Their roles may look very different in the future, and as they navigate the need to upskill and reskill, providing support on this journey will be essential. This will help payroll
04:05 I 31
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 GLOBAL
teams remain competitive and adaptable to new responsibilities. For instance, providing training to interpret data for identifying payment trends or anomalies, leveraging AI tools for accurate payroll processing, and automating compliance reporting will not only bring new benefits to the business but also enhance their personal development and value within the organization. 4. Pay transparency and equity As we move into 2025, pay transparency will become a cornerstone of payroll operations. Legislation across the globe, such as the EU Pay Transparency Directive and mandatory gender pay gap reporting, will heighten the need for payroll teams to ensure compliance and maintain accurate, trustworthy data. What’s more, employees will continue to demand greater visibility into compensation structures, driving organizations to adopt transparent and
Payroll professionals will play a pivotal role in implementing these regulatory changes, maintaining data integrity, and supporting efforts to foster trust and fairness within the workforce.
The powerful combination of skilled payroll professionals and integrated technology solutions will be a key differentiator for many businesses in 2025. Payroll leaders should embrace these trends and level up their infrastructure so they can focus on what truly matters – delivering accurate, compliant, and timely payroll while fostering trust within their organizations. By organizing payroll data, integrating AI and automation, upskilling employees, and adapting to new compliance challenges, businesses
equitable pay practices. Payroll professionals will play a pivotal role in implementing these regulatory changes, maintaining data integrity, and supporting efforts to foster trust and fairness within the workforce. Looking to a brighter 2025 Clearly, 2025 is set to be a transformative year for the payroll industry. By modernizing and globalizing outdated systems, organizations can unlock efficiencies, reduce errors, and future-proof their payroll operations. These trends will guide payroll professionals through the complexities of the future workplace, enabling them to shape strategy and ensure their businesses remain competitive.
can look forward to a brighter and more productive 2025.
32 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
THE QUESTIONS ARE: Is your team struggling to efficiently manage Payroll enquiries? ◦ Are you confident in your team's training in Award and Agreement Interpretation? ◦
Kickstart your journey to Mastering Award Interpretations and handling Payroll enquiries with ease!
WWW.PAYROLLSTANDARD.ORG
04:05 AMERICAS
U.S. Practition On Global Payro
In the U.S., like with payrolls in other countries, it is common for payroll professionals to consider whether to either outsource some or most parts of payroll to third-party service providers or to retain the payroll functions internally.
Author: John Lestock John Lestock, CPP, CEBS is a global payroll accountant at The Boeing Company. He has experience working on payroll in many different countries, including Ireland, Belgium, Israel, Japan, Hong Kong, and Turkey. He has over 25 years of experience as an accountant specializing in payroll and pension plans. His diverse experience includes payroll administration, pension plan administration, compliance auditing, sales and use tax preparation, and corporate accounting.
W hen however, the dynamic changes. The decision is less about whether to outsource, but more on which vendor to use and expanding operations overseas,
what approach should the U.S.-based employer take in administering their staff overseas. For global payroll, the service delivery models are far different when compared to outsourcing
34 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
ner’s Perspective: oll Outsourcing
U.S. payroll, but there are some options to consider: The company could follow an outsourcing strategy similar to outsourcing U.S. payroll where each country’s payroll functions are outsourced to a service provider in that specific country. For example, if a company has operations in five countries, then five separate payroll service providers are engaged.
legal employer of the company’s employees in a specific country. A hybrid model that includes a blend of the different outsourcing approaches. Depending on the service model chosen, the level of flexibility and control an employer will have over its payroll processes may be significantly limited. Of course, even if payroll functions are outsourced, the company still retains
Alternatively, a single service provider could be engaged. Payroll aggregators involve a single service contract and single point-of-contact for the company. In the previous example, instead of managing five separate service contracts and providers, the company only manages one. Engaging an Employer of Record (EOR), which is a firm that acts as the
04:05 I 35
ISSUE 8 GLOBAL PAYROLL MAGAZINE
04:05 AMERICAS
ultimate responsibility for the accuracy and timeliness of payroll as well as complying with all the relevant employment and payroll laws. Customization Challenges Most service providers generally assume standardized processes and general forms of compensation (monthly salary, bonuses, certain common benefits-in-kind, paid and unpaid leaves, etc.) when building payroll processes for each country.
specific payroll functions, resulting in customized management of those pieces, either internally or through a third party. Although the service provider is the “payroll expert” for a particular jurisdiction, the employer should have internal staff that are knowledgeable enough to be able to review payroll output (registers, payslips, bank files, etc.) to ensure accuracy and completeness. Sometimes specialized service providers (tax accountants, labor attorneys, consultants, etc.) are needed for unique situations where the payroll administrator may need additional guidance, such as equity compensation, employee assignments in other countries, and dealing with certain forms of executive compensation. Does the employer need further assistance in global mobility administration (assignees in other countries, expats, etc.) and multi-country tax compliance (hypothetical tax, tax equalization, etc.)? Who Administers What? U.S. payroll professionals sometimes expect the payroll
If the employer has non- standardized or highly
customized processes, it will be much more difficult to outsource
Of course, even if payroll functions are outsourced, the company still retains ultimate responsibility for the accuracy and timeliness of payroll as well as complying with all the relevant employment and payroll laws.
36 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 8
service provider to be the “all- knowing” expert on all aspects of payroll in all countries, but this is unrealistic. No single outsourced payroll service provider has deep knowledge and expertise in every country. Having numerous service providers, however, can result in an inconsistent service experience, where some providers are good while others are subpar. If the employer outsources non-U.S. payrolls to a payroll aggregator, the service provider may not have internal staff or offices in each country needed for the service contract. To remedy this, aggregators often subcontract to other local service providers (LSPs), or in-country providers (ICPs). Although the service contract has a single point-of-contact for the company, the payroll aggregator must work with each local service provider to send and receive information, answer questions or resolve issues. Your employees may not have direct access to the local service providers. Technology platform providers that follow a hybrid model require separate contracts
with local service providers in each country as well as a main contract. Costs and Expectations By its nature, global payroll outsourcing is more costly than U.S. payroll outsourcing. In certain situations, the employer may need to separately engage intermediary service providers to “bridge” the processes between the company’s current payroll functions and the local or overseas payroll administrator’s processes. Engaging an Employer of Record (EOR) firm can be beneficial, but, in general, employers should note that costs can rise dramatically with this outsourcing option when administering large employee populations. Delays with communications across different time zones add to the challenges of administering a global pay in general. There will be a need to incorporate additional time for responses to questions and other communications to account for time zone differences (i.e., at least 1-3 business days).
04:05 I 37
ISSUE 8 GLOBAL PAYROLL MAGAZINE
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89Made with FlippingBook - Online magazine maker