Wages Protection System (WPS) in UAE

Wages Protection System (WPS) in UAE

Wages Protection System (WPS) in UAE

What is UAE Wage Protection?

Wages Protection System (WPS) is an electronic salary transfer system that allows companies/institutions to pay workers wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labor to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages.

The WPS covers all institutions registered with the Ministry across all sectors and industries and will benefit different categories of labor.

The WPS reflects the UAE's leading position in the region, and will increasingly project the country as a model worth emulating in the following areas:

  • Ensuring that the UAE Ministry of Labor is regularly and constantly updated on wages data in the private sector in order to guarantee that employers fulfill their salary obligations;

    Taking protective and proactive measures to reduce labor disputes pertaining to wages;


A full user manual is available for download from MOHRE (ministry of human resources).

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How does WPS work in UAE?

Wages Protection System (WPS) in UAE.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labor to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages.


Is WPS mandatory in UAE?

The Wage Protection System (WPS) was approved by the UAE Government in 2009 to ensure that companies pay their staff the correct amount that matches the initial offer letter and local labor contract.

For all companies that have staff in the UAE it is a mandatory legal requirement to register and pay staff through WPS


Is WPS also mandatory for free zone companies?

Free zone companies are excluded from the Wage Protection System (WPS).

Companies setting up business in Free Zones, do not need to register with the Ministry of Labor.

Under the WPS, the company must transfer salaries to the UAE-based employees from its UAE bank account to their UAE bank accounts only in AED currency.

What is WPS ban?

WPS system urges companies to transfer salaries of employees to banks.

Ministry of labor clearly states that the companies that do not adopt WPS system will be banned from undertaking any transaction with the ministry, such as issuing work permits, renewing labor cards of employees, seeking approval to begin new operations, etc.


For more assistance, send your queries to info@sesam-accounts.com or WhatsApp your questions to  Ms Kiran Makhija on + 971 52 8731596


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