The UAE Wage Protection System (WPS) is a mandatory electronic salary payment system for UAE private sector employers. All companies with 1+ employee must comply. Here is how to set up payroll and WPS correctly.
What Is WPS?
WPS (Wage Protection System) is an electronic system operated by the Ministry of Human Resources and Emiratisation (MOHRE) that monitors salary payments for UAE private sector workers. Employers must transfer employee salaries through WPS-approved channels within the contractual payment date (or by the last day of the month if no specific date is set). WPS monitors: that salaries are paid, that they are paid on time, and that the amount matches the registered contract salary.
Step 1: Register with WPS
For mainland companies: register with MOHRE through the Tasheel platform. For free zone companies: register through your free zone’s WPS registration portal (each free zone has its own registration channel — DMCC uses its client portal, JAFZA has a dedicated WPS desk, etc.). Registration requires: trade licence, establishment card, and bank account details of the company.
Step 2: Register Each Employee
Once the company is WPS-registered, add each employee to the WPS system: employee name, UAE ID (or permit number), job title, and agreed monthly salary. Salary changes require updating the WPS record — failure to update means the system will flag underpayments.
Step 3: Monthly Salary Transfer via WPS
Each month, instruct your UAE bank to process the salary through the WPS channel (not a regular bank transfer). Most UAE banks have a “WPS Salary Transfer” option in their online banking. Banks transmit the salary data to MOHRE alongside the payment. Processing time: 1–3 business days.
WPS Non-Compliance Penalties
Failure to pay salaries on time through WPS: First offence — AED 5,000 fine per employee. Repeated offences — escalating fines, company visa ban (cannot hire new employees), and ultimately licence suspension. The UAE takes WPS compliance very seriously — set up automatic monthly WPS transfers to avoid any risk of late payment.