Most Private Sector Workers Need a WPS Salary: Here’s What Employers Need to Know

Last updated: April 2025

Today, there’s no way around it—failure to comply with UAE Wage Protection System (WPS) regulations can lead to serious penalties for employers across nearly every industry.

Introduced in 2009 by the Ministry of Human Resources and Emiratisation (MOHRE) and the UAE Central Bank, WPS is the UAE’s official platform for salary transfers. It ensures employees are paid electronically, on time, and in full.

Over the years, MOHRE has updated the regulations via Ministerial Decree No. 739 (2016), Resolution No. 43 (2022), and other relevant directives.

In this article, we’ll cover:

1. Key WPS salary regulations

2. Consequences of non-compliance

3. How to join the WPS

4. How to pay WPS salary efficiently

New to WPS? If you’re just looking for a basic overview of what WPS is and how it works, check out our full explainer here.

Do you need a payroll processing system to help you easily comply with WPS? Sign up for NOW Money’s digital payroll software to comply with WPS and enjoy smart, cost-effective, and flexible payroll management.

1. Key WPS salary regulations

According to Ministerial Resolution No. 43 of 2022, employers under MOHRE must follow these salary regulations:

1. Integrate new employees into WPS within 30 days of joining

2. Wages are due one day after the contractually agreed payday

3. Payments become late if not made within 15 days after the due date

4. Pay at least 90% of staff each month

5. Pay at least 80% of each worker’s wage each month

6. Notify MOHRE if an employee is on unpaid leave or resigned

7. For employees without a stated payday, salary must be paid at least once per month

⚠️ These rules apply only to WPS wages—not to bonuses, commissions, or end-of-service benefits.

WPS Exemptions

Some employees do not need to be included in monthly WPS SIF files:

• Employees with open wage-related court cases

• Employees reported as absconding

• New hires within their first 30 days

• Employees on documented unpaid leave

Employers must document these exemptions through the MOHRE WPS dashboard.

Update for April 2025

As of April 2025, WPS has expanded to cover certain domestic worker professions, including:

• Private teachers

• Home caregivers

• Agricultural engineers

• Private trainers

• Private representatives

Employers of these roles must now register and process wages through WPS.

2. Consequences of non-compliance with WPS salary regulations

MOHRE’s system sends three reminders: on the payday, the third day after, and the tenth. If salary remains unpaid 15+ days after the due date, penalties begin.

For repeat offenders:

• Company downgraded to Category C

• Administrative fines imposed (Cabinet Resolution No. 21 of 2020)

• Labour inspection visits increase

3. How to join the WPS

WPS registration must be done through the MOHRE website. Before registering:

• Open a corporate bank account

• Sign an agreement with a WPS agent (bank, exchange, or payroll provider)

• Submit a valid Salary Information File (SIF) for each pay cycle

After registering, you will need to follow certain procedures to make WPS salary every month, in compliance with the WPS salary regulations we have already identified above. 

Since we have examined these procedures in some depth in another article, we will outline them here only briefly (since the new resolution has not modified them): 

• Preparation and submission of a salary information file (SIF): This is a document that includes relevant payroll data and employee details (including basic salary, allowances, deductions, account number, labour card number). You must prepare and upload these salary files to the WPS. 
• WPS salary check by the MOHRE: The MOHRE will monitor your account and ensure that the details in your SIF are in line with the employment contracts you signed with your workers. It’s important you also learn how to check WPS salary so you can identify any mistakes in your SIF before uploading to the portal.
• Issuance of payment order to your WPS agent: After uploading the SIF, you can issue a payment order to your WPS agent for onward wages or salary disbursement.
• Transfer of money from your WPS agent to your employees: Your WPS agent will transfer wages or salaries to your employees.

4. Paying WPS salary efficiently

Complying with WPS is a matter of legal duty for every UAE employer registered with the MOHRE. However, mere compliance is not enough; employers must seek to comply in the most efficient way that will be advantageous to them and their employees. 

NOW Money, a fintech company that is also a WPS agent, provides such effectiveness with its cost-effective, flexible, and smart digital payroll software. 

[Do you want to adhere to WPS regulations in the most cost-effective, flexible, and smart way possible? Sign up for NOW Money and begin to pay WPS salary efficiently or learn more about how this software can transform your payroll.]

Takeaways

• The MOHRE, in association with the Central Bank, conceived and implemented the WPS as a way to ensure that employers pay employee salaries in accordance with the employment contracts they signed with them. 
• WPS has advanced and new regulations have clarified what the system requires of employers. 
• Non-compliance with WPS regulations comes with various types of penalties. 
• Employers in the UAE (Dubai, Abu Dhabi, and the other emirates) registered with MOHRE must comply with WPS and do so efficiently. 

 

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Legal Disclaimer

This article reflects UAE labour law as of April 2025, including Federal Decree-Law No. 33 of 2021, Ministerial Resolution No. 43 of 2022, and other current directives. It is for informational purposes only and does not constitute legal advice. For personalised advice, consult MOHRE or a qualified legal expert.