Definition

The Wage Protection System (WPS) is a UAE government initiative introduced by the Central Bank and the Ministry of Human Resources and Emiratisation (MOHRE). It ensures that employees working in the private sector receive their salaries on time and in full through registered banks and financial institutions.

Key points

• Mandatory for all registered companies with MOHRE.
• Salaries must be paid via the WPS through UAE banks, exchange houses, or approved agents.
• Non-compliance can lead to fines, frozen work permits, and suspension of new visa applications.
• Employers must upload a Salary Information File (SIF) each month for processing.
• Ensures transparency and reduces disputes between employers and employees.

Practical example

A contracting company in Dubai must submit its staff salary details through WPS every month. If it fails to do so within the due date, MOHRE may block new work permits until compliance is restored.

Why it matters

WPS compliance is crucial for maintaining smooth operations, avoiding penalties, and ensuring trust with both employees and regulators.