UAE compliance

    What is WPS?

    WPS stands for Wage Protection System.

    The Wage Protection System (WPS) is the UAE's mandatory electronic salary transfer system, operated by MOHRE and the Central Bank, through which private-sector employers must pay registered workers.

    Sibanee Kar· Founder & CEO, NeuralHR.AI LinkedIn Last updated 1 August 2026

    WPS explained

    WPS was introduced in 2009 to guarantee that private-sector workers are paid in full and on time. Employers submit a Salary Information File (SIF) through an approved bank, exchange house or payroll card provider, and the transfer is reconciled against the employee records MOHRE holds.

    Since 1 June 2026, Ministerial Resolution No. 340 of 2026 governs the system, repealing Ministerial Resolution No. 598 of 2022. Wages for the preceding Gregorian month are now due on the 1st day of the month — the former 15-day grace period has been abolished.

    An establishment is compliant only where at least 85% of total wages due are transferred through WPS by the due date, and each individual worker receives at least 85% of their wages, with any shortfall arising solely from lawful deductions under the UAE Labour Law.

    Cash payment of wages is not WPS-compliant. Non-compliance escalates from electronic monitoring on day 1 through work-permit suspension, administrative fines and, at day 21, precautionary attachment and referral to the Public Prosecutor.

    Official source: UAE Ministry of Human Resources and Emiratisation

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    What is WPS? UAE compliance Definition | NeuralHR.AI