How to Set Up UAE Payroll with WPS (Wage Protection System) 2026

How to Set Up UAE Payroll with WPS (Wage Protection System) Guide 2026

UAE’s Wage Protection System (WPS) is a mandatory electronic salary transfer system that ensures employees receive their wages on time and in full. All UAE mainland employers must pay salaries via WPS. Some free zones also require WPS. This guide covers setting up UAE payroll with WPS in 2026.

UAE WPS Overview

• What it is: WPS is managed by the UAE Central Bank (CBUAE) and monitored by MOHRE (Ministry of Human Resources and Emiratisation); employers must transfer salaries via WPS-approved financial institutions (banks or exchange houses) within a defined period each month
• Who must use WPS: all private sector employers in UAE mainland with 1+ employees; penalty for non-compliance is severe (up to AED 50,000 fine; potential licence suspension)
• Free zones: most UAE free zones are not technically subject to WPS (it is a mainland regulation); however, many free zone companies voluntarily use WPS or their employees are on WPS from the mainland entity
• Deadline: WPS payment must be made within 1-30 days after the last day of the wage payment period (typically the end of each calendar month)

Step 1 — Register Your Establishment with MOHRE

• Go to MOHRE portal (mohre.gov.ae) or visit a MOHRE service centre
• Register your establishment (company); get an Establishment ID number
• Link your trade licence and business details to the MOHRE establishment record

Step 2 — Register Employees in the MOHRE System

• For each employee: work permit number from MOHRE; Emirates ID number; bank account IBAN; basic salary and allowances from the employment contract
• Add each employee to your MOHRE establishment profile; MOHRE links each employee’s work permit to your WPS record

Step 3 — Open UAE Business Bank Account with WPS Capability

• All major UAE banks (Emirates NBD, FAB, ADCB, RAKBank, Mashreq) are WPS-approved financial institutions; your business bank account is the WPS payment account
• Confirm with your bank that they support WPS SIF file upload; request access to the payroll/WPS module in your online banking

Step 4 — Generate the WPS SIF File

• SIF (Salary Information File): a specific CSV/text format file; contains: Establishment ID; employee Emirates ID; employee name; basic salary; allowances; payment amount; period
• Generate SIF: use UAE payroll software (Zoho Payroll UAE, OrangeHRM, Bayzat, or your accounting software if it has WPS integration); these generate the correct SIF format automatically
• Alternatively: Emirates NBD and some other banks provide an Excel template that automatically generates the SIF file from your input

Step 5 — Upload SIF to Your Bank and Pay

• Log in to your bank’s business banking portal
• Navigate to WPS/Payroll section; upload the SIF file
• Bank validates the SIF; reports errors (incorrect format, duplicate employee IDs) for correction
• Confirm and authorise payment; funds are transferred to each employee’s account IBAN on the same or next working day

WPS Non-Compliance Penalties

• Salary delay by 15+ days: MOHRE blocks new work permit applications and renewals for your establishment
• Salary delay by 30+ days: AED 50,000 fine; further escalation can result in licence suspension and blacklisting
• Repeated violations: criminal prosecution possible; director of company held personally responsible