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Compensation Management Software In UAE (Top 7 Picks In 2024)

Find out the 7 best compensation management software in UAE for 2024. Our guide covers essential tips and insights to help you choose the right software.

Compensation management software helps in simplifying payroll processes, saving time, and reducing the workload.

Here’s a quick overview of the top compensation management software in UAE:

  1. Bayzat – Best Compensation Management Software In UAE For Startups

  2. gulfHR – Best Compensation Management Software In UAE For Large Companies

  3. Yomly – Best Feature-Packed Compensation Management Software In UAE

  4. Paylite – Best Software In UAE For Complex Payroll Processing

  5. Keka – Best Compensation Management Software In UAE For Small Companies

  6. factorHR – Best Compensation Management Software In UAE For Customization

  7. Zoho Payroll – Best Affordable Compensation Management Software In UAE

Now, before we dive into the detailed review of each of these softwares, first let’s understand what compensation management actually means, why it’s important, and the key features you should consider to pick the right solution. Let’s get started!

What Is Compensation Management Software?

Compensation management software helps businesses handle employee salaries, bonuses, and benefits. It makes the payroll process easier and less prone to errors. This software is designed to save time and reduce the workload of HR Managers.

With compensation management software, you can:

  • Calculate employee salaries based on hours worked, overtime, and deductions

  • Manage bonuses, commissions, and other incentives

  • Handle tax calculations and compliance

  • Generate payslips and reports

  • Integrate with other HR systems and accounting software

Using this software, HR teams can ensure that employees are paid accurately and on time. It also helps maintain transparency and fairness in the compensation process.

Note: Like compensation management, there’s also another type of software that can significantly improve HR process – the applicant tracking system. Check out our detailed guide on the top applicant tracking systems in UAE to learn more.

Importance Of Compensation Management Software

  1. Saves time and reduces manual effort in payroll processing.

  2. Minimizes errors and ensures accurate salary calculations.

  3. Helps maintain compliance with tax laws and regulations.

  4. Provides insights into compensation trends and budgeting.

  5. Improves employee satisfaction by ensuring timely and correct payments.

  6. Enables better decision-making through data-driven compensation strategies.

  7. Simplifies and organizes the overall HR workflow by integrating with other systems.

Key Features Of A Compensation Management Software In UAE

When choosing a compensation management software in the UAE, consider these key features:

  1. Payroll Processing – This is the core function of any compensation management software. It should accurately calculate salaries, deductions, and taxes based on UAE labor laws. The software should also generate payslips and handle end-of-service benefits.

  2. Leave Management – Look for a system that can track employee leaves, including annual leaves, sick leaves, and other types of time off. It should be able to calculate leave balances and ensure compliance with UAE leave policies.

  3. Benefits Administration – The software should help manage employee benefits such as health insurance, travel allowances, and other perks. It should allow you to easily enroll employees in benefit plans and track costs.

  4. Performance Management – Some compensation management softwares also include features for performance management. This can help you align employee goals with compensation and make data-driven decisions about pay raises and bonuses.

  5. Reporting and Analytics – Choose a software that provides detailed reports on payroll, benefits, and other compensation-related data. It should also offer analytics tools to help you identify trends and make informed decisions.

  6. Integration with Other Systems – The compensation management software should be able to integrate with other HR systems, such as attendance tracking and applicant tracking. This will help streamline your HR processes and reduce manual data entry.

  7. Employee Self-Service – Look for a system that includes an employee self-service portal. This will allow employees to view their payslips, update their personal information, and request time off without burdening the HR team.

​Now, let’s take a look at the top compensation management softwares in UAE that can help you easily manage compensation and payroll processes of employees.

7 Best Compensation Management Software In UAE

1. Bayzat – Best Compensation Management Software In UAE For Startups

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Our Overall Score: 4.9/5

Pricing: Available on request

Bayzat is one of the best compensation management softwares in UAE. Over 3000 UAE-based businesses use it to automate and simplify their HR processes.

Key Features:

  • Payroll processing

  • Payroll management

  • Work expense tracker

  • Accounting software integration

  • Performance management

Limitations:

  • Limited customizations with advanced features.

  • Some functionality could be improved.

Why We Picked It?

Firstly, it’s developed in the UAE and customized specifically keeping in mind the unique requirements of local businesses.

Secondly, it has solid integration with accounting softwares like Quickbooks and Xero so that you can easily manage all your employee compensation data in a hassle-free way.

What specifically stands out is its work expense management. Through Bayzat’s payroll system you can track all the work expenses related to your business. Plus, apart from payroll, you also get other features related to employee benefits and HR management.

Best For: Startups, Growing Small-Medium Businesses (SMBs)

Bayzat is a great choice for businesses in the UAE especially for its solid integration and payroll features.

Although some features related to functionality could be improved (like adding more templates for offer management and improving the report generation), it’s still the best choice for Startups and Growing SMBs.

>> Learn more about Bayzat

2. gulfHR – Best Compensation Management Software For Large Companies In UAE

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Our Overall Score: 4.5/10

Pricing: Available on request

gulfHR is a well-known HR and compensation management software based in Dubai, UAE. It has over 15 years of experience serving various businesses in the Middle East.

Key Features:

  • HR Management

  • Payroll Processing

  • HR Approval Process

  • Time Tracking & Employee Reporting

  • Employee Self-Service Portal

Limitations:

  • User interface could be better.

  • Expensive for companies with limited budgets.

Why We Picked It?

One of GulfHR’s standout features is its powerful data upload facility, which enables quick and easy implementation of the HRMS. This is particularly beneficial for large enterprises with complex HR processes and a significant amount of employee data.

gulfHR’s payroll management capabilities are also noteworthy. The system can handle the intricacies of payroll processing in the Middle East, ensuring compliance with local labor laws and regulations.

It also offers seamless integration with other HR functions, such as leave management and time tracking, providing a comprehensive solution for managing employee compensation.

Best For: Mid-sized Businesses, Growing Startups, Large Companies and Enterprises

If you’re looking for a compensation management system for a large enterprise, and want a well-reputed software that knows the unique needs of local businesses then gulfHR is the best choice.

It can be a bit expensive though for small businesses. So in that case, choose Keka or Zoho Payroll. And if you want more detailed payroll modules then Yomly is a better pick.

But overall, standing the test of time for over 15 years, gulfHR offers all the payroll features you need to streamline your compensation management processes.

>> Learn more about gulfHR

3. Yomly – Best Feature-Packed Compensation Management Software In UAE

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Our Overall Score: 4.5/5

Pricing: Available on request

​Yomly is a popular HR and payroll management software based in Dubai, UAE. With its comprehensive set of features, Yomly has become a go-to choice for businesses looking to organize their HR processes, particularly in the area of compensation management.

Key Features:

  • Payroll Approval Processes

  • Payslip Generation

  • Local TAX Compliance

  • Multi Region/Currency Payroll

  • Reporting Dashboard

Limitations:

  • It can have a learning curve.

  • Too many features for small businesses with simple compensation management requirements.

Why We Picked It?

One of Yomly’s standout aspects is its detailed payroll module. The software can handle payroll processing for multiple regions and currencies, making it ideal for businesses with a presence in different countries.

It also offers a range of features to ensure compliance with local tax laws and pension/social security regulations.

Another notable feature is Yomly’s expense claim management. Employees can easily submit expense claims, which can be approved through a streamlined process.

The software also allows expenses to be assigned to specific cost centers, providing greater visibility and control over business spending.

Moreover, Yomly offers a user-friendly mobile application that enables employees to access their payslips, submit expense claims, and view their benefits on the go.

This level of accessibility and convenience is particularly valuable for businesses with a mobile workforce.

Best For: Medium to Large Enterprises, Global Companies, Growing Startups

Yomly’s extensive feature set can be more than needed for small businesses and startups. In that case, a simpler solution like Bayzat would be a better choice.

However, Yomly is a perfect choice for medium to large enterprises, particularly those operating at global level. Its ability to handle different currencies and features related to compliance with local regulations makes it stand out.

>> Learn more about Yomly

4. Paylite – Best Compensation Management System In UAE For Complex Payroll Processing

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Our Overall Score: 4.2/5

Pricing: Available on request

Paylite is a well-established HR software solution that has gained popularity in the Gulf countries for its strong payroll capabilities.

The software offers a range of features – from main HR features to Payroll and performance management, it covers everything.

Key Features:

  • Integrated leave and loan accounting

  • Salary progression tracking

  • Detailed post-payroll reports

  • Mobile apps for employee self-service

  • End of Service Benefits calculation

Limitation:

  • Expensive for small businesses with tight budgets.

  • Steep learning curve compared to other Payroll solutions.

Why We Picked It?

Best For: Medium to Large Enterprises, Big Startups, Companies with Complex Payroll Requirements

Paylite can be complex for small companies. So for them the best options are Keka or Zoho Payroll.

However, for larger companies in the UAE with complex payroll processing needs, Paylite is the best option to consider.

>> Learn more about Paylite

5. Keka – Best Compensation Management Software For Small Companies In UAE

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Our Overall Score: 4.8/5

Pricing: Starting at $90/month (for up to 100 employees)

Keka is a popular HR and payroll software that has been simplifying compensation management for businesses in the UAE.

With over 16,540 HR leaders using Keka globally, it has emerged as a reliable solution for automating payroll processes and ensuring compliance with regulations.

Key Features:

  • WPS (Wage Protection System) Report in one click

  • User-friendly interface for salary revisions

  • Integration with accounting software like QuickBooks

  • Seamless expense management

  • Payroll and time tracking automation

Limitations:

  • Limited integrations with other apps.

  • Not flexible enough for complex customizations.

Why We Picked It?

What sets Keka apart is its focus on simplifying complex payroll processes for businesses in the UAE.

The one-click WPS report download ensures effortless compliance with labor regulations, saving HR teams valuable time and effort.

Moreover, Keka’s user-friendly interface allows you to revise salaries without requiring in-depth payroll knowledge.

Best For: Growing Small Businesses, Mid-sized enterprises, Startups

Keka is great for small companies, and startups offering simple payroll solutions. It is also good for ensuring compliance. However, it does lack some solid integrations with other apps.

Plus, customizations for advanced features could be a bit challenging. For that case, softwares like factorHR or a better fit.

For simple payroll requirements, though, Keka offers all the features you need.

The biggest advantage – you get budget-friendly pricing options with Keka starting at just $90/month (for up to 100 employees).

>> Learn more about Keka

6. factoHR – Best Compensation Management Software For Customization

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Our Overall Score: 4.1/5

Pricing: Available on request

factoHR is a comprehensive HR and payroll software that has been serving businesses in the UAE for over 18 years.

With more than 3,500 customers, factoHR has established itself as a trusted solution for streamlining compensation management processes, especially for large enterprises.

Key Features:

  • Single-click and off-cycle payroll processing

  • Built-in integration with accounting apps

  • Multiple payroll groups and unlimited salary components

  • Customizable payslip formats

  • Mobile app and self-service portal for employees

Limitations:

  • Expensive for smaller companies on a budget.

  • It can have a learning curve and the setup process can take some time.

Why We Picked It?

factoHR stands out for its ability to handle complex payroll requirements of large enterprises.

The wizard-driven salary process ensures accuracy and compliance, while the formula-driven rule engine allows for flexible configuration of salary structures based on industry or business type.

The seamless integration with internal modules and external systems like accounting apps saves time and effort for HR teams.

Additionally, the mobile app and self-service portal allows employees to access their compensation information anytime, anywhere.

Best For: Large Enterprises, Multinational Companies, Organizations with Complex Payroll Needs

factoHR is an ideal choice for large enterprises in the UAE that require a strong and customizable compensation management system.

Its ability to handle multiple payroll groups, unlimited salary components, and complex salary structures makes it a valuable tool for streamlining payroll processes.

However, smaller businesses with simpler payroll needs may find factoHR too complex and expensive. Alternatives like Keka or Zoho Payroll would be more suitable for such companies.

>> Learn more about factoHR

7. Zoho Payroll – Best Affordable Compensation Management Software In UAE

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Our Overall Score: 4.9/5

Pricing: Starts at $1.50 per employee per month (Free plan for up to 10 employees)

While software like FactoHR is well-known for its enterprise-grade compensation management solutions, Zoho Payroll stands out for its pricing plans.

If you’re looking for a free compensation management software, then Zoho Payroll is a top choice. It provides most of its essential features in its free version like automatic payroll, payslip generation and reports for up to 10 employees.

Its paid plans are also highly affordable starting at just $1.50 per employee per month.

Key Features:

  • Custom payslip deductions

  • Automated loan management

  • Employee self-service portal

  • Compliance and reporting

  • Employee onboarding and benefits administration

Limitations:

  • Limited integrations with other apps.

  • Not suitable for complex payroll processing.

Why We Picked It?

Zoho Payroll stands out for its user-friendly interface and seamless integration with other Zoho applications. Small businesses using Zoho products can easily manage their payroll alongside other HR and accounting tasks, saving time and effort.

The automated compliance feature ensures that businesses stay up-to-date with UAE labor laws and regulations, reducing the risk of penalties and fines.

Additionally, the secure employee self-service portal empowers employees to access their payslips and tax forms, reducing administrative workload for HR teams.

Best For: Startups, Small Companies, Mid-sized Businesses

Zoho Payroll is an excellent choice for small businesses in the UAE, particularly those already using other Zoho applications. Its user-friendly interface, automated compliance, and seamless integration make it a valuable tool for streamlining payroll processes.

However, larger enterprises with more complex payroll requirements may find Zoho Payroll lacking in advanced customization options. For such businesses softwares like factoHR or Paylite would be a better fit. But overall, Zoho Payroll stands out for its value for money features.

>> Learn more about Zoho Payroll

How To Select The Right Compensation Management Software In UAE

Here are our top tips to help you find the best compensation management software:

1. Assess Your Business Needs

Start by evaluating your organization’s specific requirements. Consider factors like company size, payroll complexity, and budget.

For instance, a large enterprise with 1,000+ employees and multiple payroll groups will have different needs compared to a small startup with 50 employees.

2. Look For Features And Compliance

Choose a software that offers all the features tailored to the UAE market such as WPS (Wage Protection System) compliance, gratuity calculations, and support for multiple currencies.

These features will ensure that your payroll processes align with local regulations and avoid penalties.

3. Evaluate Ease Of Use

Select a user-friendly software that your HR team can easily navigate and operate. A complex system may require extensive training and lead to errors.

Look for software that offers intuitive interfaces and guides that simplify payroll processing.

4. Explore Customization Options

Choose a software that offers customization options to adapt to your organization’s unique needs.

This may include configuring pay components, defining salary structures, and generating custom reports.

5. Consider Integration Capabilities

Choose a software that seamlessly integrates with your existing HR and accounting systems. This will save time and reduce manual data entry.

For example, a software that integrates with your attendance management system can automatically calculate overtime and leaves.

6. Compare Pricing Plans

Evaluate the pricing plans of different software providers and choose one that offers the best value for your budget.

Some providers offer per-employee pricing, while others have tier-based plans. Consider both immediate and long-term costs.

Need help selecting the right compensation management software for your company? Our HR experts at hrtech can help you select the exact solutions that will simplify your HR processes in a hassle-free way. Contact us now to learn more.

Implementing Compensation Management Software

Implementing a new compensation management software can be a big change for your organization.

Here are some best practices to ensure a smooth transition:

Plan ahead:

  • Set clear goals for what you want to achieve with the new software.

  • Create a timeline for implementation, including testing and training periods.

  • Communicate the changes to your employees well in advance.

Clean up your data:

  • Make sure your employee data is accurate and up-to-date before migrating to the new system.

  • This includes details like salaries, benefits, and leave balances.

Involve key decision-makers:

  • Get input from HR team members, payroll specialists, and IT staff during the implementation process.

  • Their insights can help you avoid potential pitfalls and ensure a successful rollout.

Conclusion

Choosing the right compensation management software in the UAE is crucial for streamlining payroll processes and ensuring compliance with local regulations.

Our top picks for each company size are:

  • Startups and Small Businesses: Zoho Payroll and Bayzat

  • Mid-sized Companies: Keka and Yomly

  • Large Enterprises: gulfHR, Paylite, and factoHR


When selecting a software, consider your organization’s specific needs, features, evaluate ease of use, explore customization options, and compare pricing plans.

Implementing a new compensation management system can be challenging, but with proper planning, data preparation, and involvement of key decision-makers, you can ensure a smooth transition.

Interested in exploring more HR software? Check out our hrtech’s marketplace to find out a wide variety of tools and start simplifying our HR processes.

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