The UAE Wage Protection System (WPS) is a mandatory electronic salary transfer mechanism that ensures private sector employees receive salaries on time. Non-compliance results in fines and potential business suspension.
How WPS Works
Employers must transfer employee salaries through a MOHRE-approved WPS agent — either a bank or exchange house. The agent reports salary payments to MOHRE. If salaries are not paid by the 10th of the following month, the employer is flagged and may face restrictions on new work permit applications.
WPS Agents in the UAE
- All major UAE banks (ENBD, FAB, ADCB, Mashreq, etc.)
- Licensed exchange houses (Al Ansari Exchange, Al Fardan Exchange)
- Payroll service providers integrated with WPS
WPS Compliance Timeline
| Day | Action |
|---|---|
| End of month | Salary due date |
| 1–10 of next month | Grace period for WPS transfer |
| Day 10 (missed) | Employer flagged; new permit applications blocked |
| Day 60 (missed) | Financial penalties apply; possible licence suspension |
Setting Up WPS via Your Bank
Contact your UAE business bank to enrol in WPS. You will need: trade licence, MOHRE establishment card, list of employees with MOHRE labour card numbers, and bank account details for each employee. Most banks activate WPS within 3–5 working days.