How to Set Up UAE Free Zone Company Payroll and WPS 2026
UAE free zone companies with employees must comply with UAE Wage Protection System (WPS). Here is the step-by-step 2026 guide on setting up payroll and WPS.
In this guide:
What Is WPS?
- Full name: Wage Protection System
- Authority: Ministry of Human Resources and Emiratisation (MOHRE)
- Scope: All UAE employers with employees on UAE residency visa
- Function: Ensures employees receive salaries on time via a MOHRE-monitored electronic transfer
Step 1: Register with MOHRE
- MOHRE registration: Your free zone company (if issuing UAE work visas for employees) must be registered in MOHRE system
- Note: Some free zones (JAFZA, DAFZA, DIFC) have own WPS systems; check with your free zone
Step 2: Open Company Bank Account
- UAE business bank account required: WPS payroll must be processed through UAE bank account
- WPS bank: Your bank must be a WPS-approved bank (most UAE banks are)
Step 3: Set Up Payroll File
- SIF file: WPS uses a Salary Information File (SIF) format; standard XML file with employee details and salary amounts
- Payroll software: Many UAE payroll software tools (Bayzat, ZenHR, etc.) generate SIF files automatically
Step 4: Submit Payroll Each Month
- Deadline: Salaries must be paid by the last working day of each month (earlier for some free zones)
- SIF submission: Upload SIF file to your bank’s WPS portal; bank processes bulk salary transfer
- Penalty: Late WPS payment incurs MOHRE fine; can affect visa renewals