# 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.

## 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](https://www.mohre.gov.ae)

## How NeuralHR.AI handles WPS

- [WPS payroll software UAE](https://neuralhr.ai/en/wps-payroll-software-uae)
- [Best payroll software UAE](https://neuralhr.ai/en/best-payroll-software-uae)

## Related terms

- [SIF](https://neuralhr.ai/en/hr-glossary/sif): A Salary Information File (SIF) is the fixed-format text file a UAE employer submits to transfer wages through the Wage Protection System.
- [MOHRE](https://neuralhr.ai/en/hr-glossary/mohre): MOHRE is the UAE federal ministry that regulates private-sector employment, issuing work permits and labour cards and enforcing the Wage Protection System and Emiratisation quotas.
- [Ministerial Resolution No. 340 of 2026](https://neuralhr.ai/en/hr-glossary/ministerial-resolution-340-2026): Ministerial Resolution No. 340 of 2026 is the UAE regulation, in force from 1 June 2026, that sets wages due on the 1st of each month and requires 85% of total wages to clear WPS by then.

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Canonical page: https://neuralhr.ai/en/hr-glossary/wps
Last verified: 2026-08-01

Published by NeuralHR.AI — AI-native HR and payroll platform for the UAE, Saudi Arabia and India.