Last updated: April 2025
The Wage Protection System UAE (WPS) is the official salary transfer platform mandated by the Ministry of Human Resources and Emiratisation (MOHRE). Since its launch in 2009, it has ensured that employees in the private sector are paid safely, transparently, and on time.
In this article, we’ll explain how the wage protection system in the UAE works, why it matters, and what employers and employees need to know in 2025.
Here, we’ll focus on:
- What is Wage Protection System in the UAE: Introduction, origin, and benefits
- How to register for WPS
- How the WPS works
- Fines and penalties for non-compliance
- How to get the best value out of WPS
Looking for details on salary deadlines, late payment fines, and WPS exemptions? Read our WPS salary compliance guide.
1. What is Wage Protection System UAE: Introduction, Origin, and Benefits
The Wage Protection System (WPS) was introduced in July 2009 under Ministerial Decree No. 788, as a joint initiative by the Ministry of Human Resources and Emiratisation (MOHRE) and the Central Bank of the UAE. It is an electronic salary transfer system designed to ensure timely and full payment of wages to employees in the private sector.
The WPS requires employers to process employee salaries through banks, exchange houses, and financial institutions authorized by the Central Bank. This system enhances transparency in salary payments and protects workers’ rights by ensuring that wages are paid in accordance with the terms agreed upon in employment contracts.
By October 2015, approximately 3.5 million of the 4.6 million migrant workers in the UAE were benefiting from the WPS, according to the International Labour Organization (ILO).
Benefits of WPS
- For Employees: Ensures timely payment of agreed wages, reducing labor disputes and enhancing job security.
- For Employers: Streamlines payroll processes, provides legal proof of salary payments, and helps maintain compliance with labor laws.
2. How to Register for Wage Protection System in the UAE
Employers in the UAE and the Jebel Ali Free Zone (JAFZA) are required to register for the WPS. The registration process involves:
- Opening a corporate bank account with a UAE-based bank approved for WPS transactions.
- Entering into an agreement with a WPS agent (bank, exchange house, or financial institution authorized by the Central Bank).
- Submitting a Salary Information File (SIF) containing details of employee salaries, allowances, and deductions.
Employers must pay wages through WPS by the deadlines set out in Ministerial Decree No. 739 of 2016 and newer resolutions.
Now that you are aware of the requirements, you can visit the MOHRE website to set up your account and receive your login ID for the WPS e-portal.
3. How the WPS Works
The WPS operates through the following steps:
A. Preparation and Submission of a SIF
Employers prepare a Salary Information File (SIF) containing details of employee wages, allowances, and deductions. This file is submitted to the WPS through the employer’s WPS agent.
B. WPS Salary Check by MOHRE and the Central Bank
The MOHRE and the Central Bank review the SIF to ensure compliance with WPS regulations. They verify that salaries are paid in accordance with employment contracts and that the required percentage of employees and wages are covered.
C. Issuance of Payment Order to the WPS Agent
Upon successful verification, the MOHRE and the Central Bank issue a payment order to the WPS agent, authorizing the disbursement of salaries.
In the event that there are errors on the SIF, you will receive an email requesting you to update the SIF and correct the identified errors. You need to avoid errors so as to prevent incurring fines and penalties for payment delay.
D. Transfer of Money from the WPS Agent to Employees’ Accounts
The WPS agent transfers the approved salary amounts to the employees’ bank accounts or WPS payroll cards. Employees can then access their wages through ATMs or other banking services.
For maximum efficiency, you should ensure that your employees have a bank account and a normal debit card or a special WPS payroll card they can use to withdraw and transfer money.
4. Fines and Penalties for Non-Compliance
Employers who fail to comply with WPS regulations may face penalties, including:
- Suspension of work permit issuance.
-
Fines ranging from AED 5,000 per affected worker, up to AED 50,000 for multiple violations.
-
Downgrading of the company’s classification in the MOHRE system.
-
Legal action and potential suspension of the company’s operations.
These penalties are defined under Cabinet Resolution No. 21 of 2020 and enforced to uphold employee rights.
5. How to Get the Best Value Out of WPS
To maximize the benefits of the WPS, employers should:
-
Maintain accurate and up-to-date employee records.
-
Ensure timely submission of SIFs and salary payments.
-
Utilize digital payroll solutions that are compliant with WPS regulations, such as NOW Money’s digital payroll system, which offers cost-effective and efficient payroll management.
Contact us to learn more about how we are helping employers and employees get the best out of the WPS.
Looking for details on salary deadlines, late payment fines, and WPS exemptions? Read our WPS salary compliance guide.
Takeaways
- The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) introduced the WPS to protect employees’ rights and prevent labour disputes between employers and employees.
- WPS is compulsory for all private sector companies in the UAE and the Jebel Ali Free Zone (JAFZA).
- To participate, companies must meet certain requirements and follow certain procedures and mechanisms.
- Failure to comply with WPS requirements incurs various fines and penalties.
- Companies must ensure they get the best value out of the WPS by choosing the right agents.
Legal Disclaimer
This article reflects UAE labor law as of April 2025, including Federal Decree-Law No. 33 of 2021 and Ministerial Decree No. 739 of 2016, and other current directives. It is for informational purposes only and does not constitute legal advice. For personalized advice, consult MOHRE or a qualified legal expert.
