Expert Perspectives from OPS
As Gulf-based companies prepare for the year ahead, payroll teams across the region are facing increased scrutiny from auditors, WPS systems, banking partners, and labor authorities. Interestingly, OPS payroll specialists agree on one central theme: the biggest risk in 2026 will come from lingering issues carried forward from 2025, not from brand-new regulatory changes.
“Organizations often assume that if payroll ran last year, it should run the same way in the new year,” says Ahmed Magdy, Payroll Specialist at OPS. “But year-end errors rarely disappear, they simply compound, and they tend to surface when the stakes are highest: during audits or employee exits.”
Strengthening WPS Reliability in 2026
While GCC governments continue enhancing wage protection systems, the focus is shifting from compliance at payroll run to continuous validation throughout the year. In the UAE specifically, two new mandatory data elements are set to take effect:
• A justification field for any salary mismatch
• A declaration confirming employee “inside country” status
“These aren’t just checkbox additions,” explains Remya Prasanna. “They require tighter HR and payroll coordination so the data behind the payroll file is clean before submission.”
OPS specialists continue to observe preventable rejections due to incorrect MOL IDs, misalignment between labor contracts and payroll structures, or inconsistent handling of unpaid leave and variable pay.
In 2026, WPS tolerance for errors will likely continue decreasing, and cut-off windows may become stricter, making first-time accuracy more essential than ever.
The Silent Risks Companies Carry Into the New Year
Leave balances, EOS provisions, statutory contributions, nationality quotas, and employee status records must be reconciled before December closes yet many businesses postpone the exercise until issues are escalated externally.
According to Remya, one challenge persists: ensuring offer letters and actual contract structures match, particularly in organizations with frequent salary adjustments. Camille Anchoriz reinforces the point:
“One incorrect daily rate calculation may seem small in isolation, but six months later, that same error becomes a significant financial discrepancy.”
OPS recommends that businesses perform a “payroll health review” early in the new year. Tackling errors proactively ensures any discrepancies are resolved on your own timeline, not during an audit.
Getting Jurisdictional Rules Right
Payroll in the GCC is not uniform. Companies dealing with employees subject to differing labor authorities – MOHRE, various free zones, or even cross-border arrangements must carefully distinguish applicable rules.
Notice-period pay, mid-cycle terminations, unpaid leave handling, and EOS calculations continue to be areas where misinterpretation of labor law triggers avoidable disputes.
“This is where payroll teams must shift from correctly running numbers to correctly applying the law,” notes Camille. “Compliance is as much a legal alignment exercise as it is a technical one.”
Multi-Country Payroll: Local Expertise Becomes Non-Negotiable
As businesses scale across the GCC, they discover quickly that centralizing payroll introduces risks if local dependency is underestimated.
Different banking validations, salary protection frameworks, reporting requirements, and even public holidays require a payroll rhythm that respects the local environment. Payroll cannot be treated as one regional template.
OPS specialists emphasize the need for localized payroll governance paired with scalable, centralized visibility.
Technology Must be Built for Compliance, Not Just Convenience
Automation and ESS capabilities are now basic expectations. However, technology choices must keep pace with regulatory expectations, not just operational needs.
“Efficiency is meaningless if compliance is compromised,” says Safaa Hashem. “The conversation must evolve from ‘Is this faster?’ to ‘Is this defensible during an audit?’”
Systems must:
● Validate data accuracy before payroll runs
● Account for new regulatory requirements
● Maintain a traceable approval and documentation trail
● Protect sensitive data under rising cybersecurity standards
Organizations selecting payroll partners in 2026 will consider compliance readiness a core KPI.
The Year Ahead: A Compliance Mindset, Not a Checklist
If 2025 introduced complexity, 2026 will test whether companies have learned from it.
Success will depend on:
● Early data remediation rather than late corrections
● Proactive planning instead of reactive firefighting
● Documented controls rather than verbal verification
● Strong vendor partnerships rather than internal overextension
OPS specialists believe the advantage lies with organizations that invest in governance, accuracy, and technology before challenges emerge.
Payroll done right is silent.
Payroll done wrong becomes a crisis.
2026 will make the difference clear.
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