What is WPS in UAE: A Guide to the Wage Protection System
When salary payments are delayed, incomplete, or inconsistent, it can cause stress for employees and lead to legal problems for companies. To prevent these issues, the UAE government introduced the WPS in UAE. This Wage Protection System ensures that salaries are paid on time, in full, and through secure, trackable channels.
WPS was introduced in 2009 and provided a legal framework for companies to easily process employees’ salaries through government-approved banks or exchange houses. With the recent updates and digital enhancements, understanding how WPS in the UAE works and its importance for both employers and employees.
Importance of the WPS in UAE
The WPS system in the UAE isn’t just about processing salaries — it’s about safeguarding fairness in the workplace. With wage-related complaints historically among the most common labour disputes, WPS serves as a frontline tool to ensure transparency, stability, and accountability in private sector employment.
Protecting Employee Rights
The WPS in UAE makes sure all private workers, like baristas and engineers, get their full salaries on time. We once helped some store workers in Dubai check their WPS payments using the MOHRE website, and it gave them confidence that everything was on track. WPS uses bank transfers to keep workers’ money safe, no matter what job they do.
Preventing Delayed Wage Payments
The WPS helps MoHRE and the UAE Central Bank spot patterns of abuse or negligence early. If a company doesn’t pay salaries on time or changes payroll records to cheat, the system automatically flags it. This has helped reduce salary issues in important sectors like construction, retail, and domestic work.
Aligning with UAE Labour Reforms
The WPS follows UAE Labor Law No. 33 of 2021 and supports the country’s goals to improve jobs and hire more Emiratis. By making salaries clear and fair, it helps more Emiratis feel comfortable working in private companies. Some of the companies we work with have grown by following these rules.
Key Stakeholders of the WPS
Running WPS in UAE smoothly involves a team effort. From regulators to employees, each plays a vital role.
How the UAE WPS Works
The WPS system in the UAE operates as a fully digital pipeline that connects employers, financial institutions, and government regulators. Its purpose is simple: ensure that every employee covered under UAE labour law receives their salary in full, through a legally documented and traceable process.
Every month, employers are required to submit a detailed Salary Information File (SIF) to the system. This file contains employee wage data, contract details, and payment instructions. Once verified, the payment is routed through a licensed WPS agent — usually a bank or exchange house — and then directly deposited into each worker’s registered account or payroll card.
Employer Registration
Before using WPS in UAE, a company must register with MoHRE and link its account to a licensed bank or WPS agent. Registration includes providing a valid trade license, company establishment card, and a corporate bank account that supports WPS transactions.
Preparing Salary Information File (SIF)
Each month, the employer generates a SIF — a formatted digital file listing all employees, their salaries, working hours, contract details, and payment dates. This file must follow strict MoHRE formatting rules and reflect the actual terms in the labour contract.
MOHRE & Central Bank’s Verification
After the submission of the SIF file, MOHRE analyzes it with internal records to confirm that salaries match the official employment contracts. The UAE Central Bank then verifies the transfer process to ensure all transactions pass through secure and compliant channels.
Payment Order Issuance
If the data is correct and funds are available in the employer’s account, the system issues a payment order to the chosen WPS agent — a bank or exchange house approved by the Central Bank. The WPS agent prepares the salaries for disbursement.
Transfer of Wages to Employees
Finally, wages are deposited into each employee’s registered bank account or WPS payroll card. This is usually completed within 1–2 business days of MoHRE approval. Each transaction is recorded and traceable, creating a clear financial trail for audit or dispute purposes.
Registering Your Company for WPS
Setting up your company on the WPS system is not just a legal step — it’s the starting point for payroll compliance in the UAE. Employers must complete registration before hiring staff or issuing salaries. The process involves preparing your financial setup, selecting the right service provider, and understanding ongoing payment requirements.
Prerequisites (Bank Account, Valid License, MOL Access)
Before registration, ensure your business holds a valid trade license and an active establishment card issued by the Ministry of Labour. You’ll also need a corporate bank account with a financial institution licensed by the UAE Central Bank to operate WPS services. Additionally, your company must be registered with MoHRE and have access to its online portal.
Choosing a Licensed WPS Agent
WPS agents are banks or exchange houses authorised to process salary payments. Choose one based on service reliability, integration support for your HR systems, and fee transparency. Many agents offer payroll software that directly syncs with MoHRE’s portal, which simplifies compliance.
Payment Deadlines and Percentage Rules
Once registered, you must process salaries by the due date stated in each employee’s contract. MoHRE generally expects payments to be made within ten days of the due date. Failing to meet this deadline can result in immediate penalties. Companies must also pay the full salary amount; partial payments or discrepancies between the SIF and contract are flagged automatically.
Fees and Compliance Tips
Most WPS agents charge transaction fees per employee or per SIF submission. These vary between banks and exchange houses. To avoid disruptions, always maintain enough balance in your payroll account, and regularly audit your employee records for accuracy. Late filings, outdated contract info, or errors in the SIF are common causes of compliance issues.
Preparing a Salary Information File (SIF)
The Salary Information File (SIF) is an important document that shows how much each employee should be paid based on their job contract. It’s used to send their monthly salary through the WPS system. If there’s even a small mistake in the file—like a wrong number or missing detail—it can stop or delay the payment. That’s why it’s important to prepare it very carefully
WPS SIF Format
The SIF follows a strict format defined by MOHRE. It must include:
- Employer establishment number
- Employee work permit number
- Bank routing code
- IBAN or payroll card number
- Employee name, nationality, and designation
- Basic salary, allowances, and total payable amount
- Payment month and salary period
Each field must follow predefined data standards — even a misplaced digit can cause a rejection.
How to Fill the Employee Detail Record (EDR) Correctly
The Employee Detail Record (EDR) is a mandatory sub-section of the SIF. It includes granular information like passport number, contract type, number of working days, and employee category (e.g., skilled, unskilled, domestic). Make sure this data matches exactly with the employment contract and MoHRE records. Mismatched or outdated information is one of the leading causes of WPS file rejection.
Common Errors and How to Avoid File Rejection
- Incorrect Work Permit Numbers: Always verify with the latest MoHRE database.
- Mismatched Salary Figures: Ensure your HR system reflects contract updates.
- Wrong File Format: Upload only in the MoHRE-approved SIF layout (usually CSV or TXT).
- Missing Employee Data: Even a single blank field can block the entire batch.
- No Available Funds: Make sure your company account has enough balance before submitting.
To reduce errors, many companies use automated payroll software that syncs directly with MoHRE’s portal and validates data in real time before submission.
Salary Withdrawal Methods for Employees
Once salaries are processed through the WPS in UAE, employees have multiple ways to access their wages. Each method is secure, regulated, and tied to the banking or payroll channel used by the employer.
Withdrawing Through WPS Payroll Cards
Employees without a standard bank account often receive their wages on a WPS payroll card issued by the company’s WPS agent. These cards function like debit cards and can be used at ATMs, exchange house kiosks, or point-of-sale machines. Payroll cards are especially common for construction, cleaning, and service workers.
Using ATM or Banking Apps
For employees with personal bank accounts, salaries are transferred directly via the WPS system. Funds typically reflect within 24–48 hours after approval. Salary can be withdrawn from any ATM or by using online banking mobile apps.
What to Do If Salary Is Not Credited
If a salary doesn’t arrive, check the WPS salary check status on MoHRE’s portal or UAE Pass App. We once helped an employee resolve a delay by contacting the WPS agent directly. MoHRE’s helpline (800-60) is also a lifesaver.
Penalties for Non-Compliance
The Wage Protection System is enforceable by law, and if companies fail to comply with it, then they have to face fines, administrative restrictions, and even labour bans. Below are the types of penalties for violation of WPS
Penalty Tiers for Companies
MoHRE applies different timelines and consequences depending on workforce size.
- Companies with over 100 employees must pay salaries within 10 days of the due date. Failing to do so results in a warning, followed by fines, suspension of new work permits, and referral to public prosecution if delays persist.
- Companies with less than 100 employees are also monitored, but penalties may apply slightly later (usually after 15–20 days of delay), though non-compliance still carries serious consequences.
Types of Violations
WPS violations aren’t limited to late payments. Common breaches include:
- Paying less than the agreed contract wage
- Partial or staggered payments without justification
- Incorrect employee data in the SIF
- Failure to submit salary records for all active employees
MOHRE uses automated systems to detect these patterns and issue real-time alerts to the employer.
Who is Exempt from the WPS System?
Not everyone falls under WPS UAE. Here’s what we clarify for clients:
- Domestic Workers: Governed by the Domestic Workers Law UAE, not WPS.
- Free Zone Entities: Some, like JAFZA, follow separate payroll rules, though many adopt WPS voluntarily.
- Legal Grey Areas: Firms with fewer than five employees may face unclear rules, but we advise voluntary compliance to avoid risks.
Employees should confirm exemptions with MOHRE for clarity.
Choosing the Right WPS Agent or Provider
Choosing the right WPS provider is an important element that you should do with caution.
FAQ’s
Final Thoughts
Compliance with new WPS rules in the UAE is non-negotiable in 2025, as MOHRE ramps up enforcement to protect workers and align with labor reforms. Employers should maintain accurate records, choose reliable WPS agents, and leverage HR tech for efficiency. Employees can use MOHRE’s tools to monitor their wages, ensuring peace of mind—and if you’re calculating your end-of-service benefits, our UAE Gratuity Calculator can help you get an accurate estimate based on the latest labor laws.
