The UAE Wages Protection System (WPS) is a government-mandated electronic salary transfer system that requires employers to pay all employees’ salaries through UAE banks or approved exchange houses. Here is a complete compliance guide.
What Is the UAE WPS?
WPS was introduced by MOHRE (Ministry of Human Resources and Emiratisation) to ensure timely and accurate wage payment to UAE-based employees. Under WPS: all salaries must be transferred electronically (cash payments are not WPS-compliant), salary must be paid by the last day of the month (or within 10 days for daily/weekly workers), each transfer must include employee ID (MOHRE number) and a SIF (Salary Information File) submitted to MOHRE. WPS covers: all private sector employees working under MOHRE-registered contracts in the UAE mainland. Not covered: DIFC and ADGM employees (separate regulatory framework), domestic workers (separate MOHRE domestic workers scheme), and free zone employees (some free zones have their own equivalent system).
WPS Compliance Requirements
Employer obligations: register all employees with MOHRE (issue each a MOHRE number), maintain a WPS-registered bank account at an approved bank, submit a Salary Information File (SIF) to the bank before each payroll run, and transfer all salaries by the agreed pay date. Banks that process WPS: all major UAE banks (ENBD, FAB, ADCB, Mashreq, etc.) and approved exchange houses (Al Ansari, Al Fardan). The bank submits the SIF data to MOHRE after processing. MOHRE monitors the SIF data in real time.
WPS Non-Compliance Penalties
Employers who violate WPS face MOHRE penalties: up to 30 days late: warning and fines starting AED 1,000 per employee. 60+ days late or repeated violations: suspension of new work permit applications, blacklisting, and in serious cases: company shutdown. Late salary payment is one of the most common MOHRE complaints in the UAE.