Understanding the Wage Protection System (WPS) in the UAE (2025 Guide)

The Wage Protection System (WPS) is an electronic salary transfer system introduced by the UAE Ministry of Human Resources and Emiratisation (MOHRE) and the Central Bank of the UAE. 

 It ensures that private sector employees are paid accurately and on time through authorised UAE banks and financial institutions. 

All mainland companies and most Free Zone businesses are legally required to use WPS to process staff salaries.
Failure to comply can lead to fines, blocked work permits, and even suspension of business operations. 

What Is WPS and Why It’s Important 

WPS was designed to:

✅ Protect employees’ rights by ensuring regular, traceable salary payments.
✅ Improve transparency between employers and employees.
✅ Reduce labour disputes related to delayed or unpaid wages.
✅ Enable the government to monitor and enforce labour law compliance. 

For employers, using WPS builds trust with staff and helps maintain a compliant HR and payroll system. 

Who Must Use WPS 

Mandatory for: 

• All companies registered under MOHRE (mainland businesses). 

• Most Free Zones, including DMCC, RAKEZ, and DAFZA. 

Exemptions: 

Some smaller Free Zones (such as IFZA or SPC Free Zone) may use their own salary verification systems instead of WPS — always confirm with your authority. 

However, if your company hires employees under MOHRE jurisdiction, WPS registration is mandatory regardless of size. 

How the WPS System Works 

WPS links three key parties: 

1. Employer’s Bank – transfers salaries through a Central Bank–approved channel. 

1. Employee’s Bank Account – receives the net salary. 

1. MOHRE Database – automatically verifies payments and records compliance. 

Process Overview: 

1. Employer prepares the monthly payroll file (SIF format). 

1. The file is uploaded through the company’s bank or WPS agent. 

1. The Central Bank validates the data and forwards it to the employee’s bank. 

1. MOHRE receives payment confirmation in real time. 

The system ensures every salary payment matches the details registered in MOHRE’s employment database. 

Setting Up WPS for Your Business 

Before you can pay employees via WPS, ensure the following: 

✅ Active Trade Licence and Establishment Card.
✅ Registered with MOHRE or your Free Zone authority.
✅ Open a corporate bank account in the UAE.
✅ Coordinate with a WPS-approved bank or agent.
✅ Prepare salary information in the Salary Information File (SIF) format. 

Once your first file is uploaded successfully, your WPS registration is complete. 

Salary Information File (SIF) – Key Details 

Each SIF contains: 

• Employee’s full name 

• Labour card number 

• Bank account / IBAN 

• Salary amount and pay period 

• Any deductions (if applicable) 

Tip: Always use the exact employee name and labour card number registered with MOHRE — even a minor mismatch can cause file rejection. 

 

WPS Payment Timeline 

• WPS Submission Deadline: Salaries must be processed and credited within 15 calendar days from the due date. 

• Salary Due Date: The date agreed upon in the employee’s contract (usually the last day of each month). 

• Most companies set the 30th or last day of the month as payday. 

• Late payments automatically trigger MOHRE warnings after the 15-day grace period. 

Updating Employee Salary Information 

Whenever an employee’s salary, position, or employment status changes: 

• Update MOHRE or Free Zone records immediately. 

• Reflect the change in your next SIF file. 

• Maintain written consent and documentation for salary adjustments. 

Failure to update WPS data can cause discrepancies during audits. 

WPS in Free Zones 

While MOHRE governs mainland companies, most major Free Zones now integrate WPS to maintain consistency.
Examples: 

• DMCC: Uses WPS through UAE Central Bank. 

• RAKEZ: Mandatory WPS for all companies. 

• DIFC & ADGM: Have separate employment regulations and payroll systems (not WPS). 

Always confirm your Free Zone’s exact requirements.