Moving to the United Arab Emirates (UAE) can be exciting, but it does come with a lot to learn. When it comes to something like knowing your rights as an employee and understanding the salary system, the rules might be very different to what you’re used to. There’s one acronym you’ll hear a lot when you first start working in the Emirates: WPS. It stands for Wage Protection System, which is a government-led initiative that’s designed to ensure that employees are paid in full and on time—so you can be sure exactly when you’ll have money to send home with Remitly.
In this guide, we’re sharing the basics of WPS, from how salaries are paid to what your employer is responsible for doing under the system, so you’ll know you’re being treated fairly by your employer.
The Wage Protection System in the UAE
The WPS is an electronic salary system that was introduced by the UAE’s Ministry of Human Resources and Emiratisation (MOHRE) in 2009. It’s aimed at protecting the rights of workers across the country and promoting fair labour practices. Under this system, salaries are paid to employees through banks, exchange houses, and financial institutions that have been pre approved by the Central Bank of the UAE. This ensures that every transaction is traceable and secure.
All private sector employers in the UAE must register with MOHRE and use the WPS system to pay workers. Each month, they upload Salary Information Files (SIFs) to their bank or payroll provider, detailing the payment breakdown for each employee. This data is then processed and matched against the company records in the WPS. If an employer fails to pay on time or submits incorrect information, the system flags the inconsistency. This can trigger warnings, fines, and even the suspension of operational permits. So failure to comply is taken very seriously.
The benefits for employees are clear: the WPS helps ensure that you get your full salary on time, which is super-important when you’re trying to balance your budget in a country with a high cost of living like Dubai and the other Emirates. Ultimately, the system helps to build trust on both sides of the employment relationship by setting clear standards for wage practices across the UAE.
The importance of WPS in the UAE’s labour market
Before the WPS was introduced, employers used to manage salary payments manually or informally—using cash, cheques, or direct bank transfers—without much oversight from the government.
This led to a number of problems, especially for lower-wage workers. Salaries often took a while to be processed and there was the risk that payments would be misdirected due to administrative errors. Sometimes, workers only received partial payments or weren’t paid at all. And worse, there wasn’t much they could do about it formally—there was no official channel to report this.
With no consistent tracking system, it was difficult to hold employers accountable. So, the government instituted the WPS to create a reliable, traceable process for salary payments. It helped to bring structure to the labour market by reducing disputes and a way for disputes to be resolved.
The basics of labour law in the UAE
In addition to understanding the WPS, being aware of your rights under UAE labour law can help you to feel more confident and secure in your job. Here are a few key things you should know:
- Employment contracts
Your agreement with your employer must be in writing and clearly state your salary, working hours, job duties, and leave entitlements. - Maximum working hours
You can work a maximum of eight hours a day for six days a week, totalling 48 hours. - Rest days
Your employer must give you at least one rest day per week. This is usually either a Friday or a Sunday. - Annual leave
You’re entitled to 30 calendar days of paid annual leave for each year of service that you provide to your employer. - Minimum wage
Currently, there currently isn’t a minimum wage in the UAE, but UAE Labour Law states that salaries and wages must cover your basic needs. - End-of-service gratuity
If you’ve been with an employer for at least a year, you’ll sometimes be given a bonus with your final salary when you leave the company. - Termination
Your notice period and the end-of-service gratuity due to you when you leave a company will depend on what’s in your contract and why you’re leaving.
When should you get paid?
When you get paid will depend on the structure of your employment contract. Office workers are usually paid once a month and your salary should be in your account on the first day following the end of that month of the cycle. It must be paid to you within 15 days of the end of the pay cycle.
For example, if your employment contract says you’ll be paid on the 1st of every month, payment must be completed by the 15th of that month at the latest. If your employer misses this window, they could face penalties under the WPS. Having your salary land in your bank account on time can help you to manage your money better so you can reach your financial goals and, like many immigrants working in the UAE, wire funds to your family back home.
How does WPS work?
The WPS is designed to make salary payments easier to track, safer to send, and more reliable for employees. Let’s take a look at how the system works from the employer’s side so you can better understand how it protects you as an employee.
Employer registration
The first step employers must take is registering with the MOHRE and opening an account with a WPS agent; for example, an approved UAE bank, exchange house, or other authorised financial services provider. This helps ensure that all future salary payments are properly tracked and compliant with the UAE’s national labour regulations.
Prepare and submit SIFs
Every month, employers must prepare a Salary Information File. This is a digital document that lists every employee’s full name, labour card number, salary amount, and the period they’re being paid for. They then submit this file to their bank or WPS agent for processing.
Salary verification
After the SIF is submitted, the WPS provider automatically processes the document and checks the details against the records that your employer has provided to MOHRE. It verifies that the employee is registered and their salary matches the contract terms.
For example, if your employer transferred an amount to you that was less than the wage agreed in your contract, the system would flag the discrepancy and block the payment until it’s corrected.
Payment order issuance
Once your salary details have been verified, your employer issues a payment order for the total salary amount to their WPS agent. This serves as proof that your employer has made a valid and accurate wage calculation.
Salary transfer instructions
When the payment order has been issued, the WPS agent processes it and prepares the individual salary transfers in line with what’s set out in the SIF.
Transfer of salary to employees
At this stage, your salary is officially scheduled for distribution and will be deposited either into your designated bank account or prepaid payroll card. The transfer is logged and both you and your employer are provided with a record of the payment.
WPS compliance requirements
As an employee, it’s helpful to know what your employer is responsible for under the WPS. To stay compliant, your employer must:
- Register with MOHRE and a WPS agent.
- Submit accurate employee details and contract terms to MOHRE.
- Generate and upload an accurate SIF each month.
- Pay you at least 80% of all employee wages within 15 days of the due date.
- Ensure that the payment made to you matches what’s in your contract.
- Respond to any WPS-related queries timeously.
Penalties for non-compliance
The UAE government has put strict penalties in place to ensure that employers stick to the WPS rules so workers are treated fairly. As we mentioned, this is taken seriously in the UAE and includes punishments up to and including the firm having its operational permits suspended. In more serious cases, legal action may be taken against the business. If you aren’t paid on time or you aren’t paid the correct amount, your first step should be to talk to your employer directly. It might be a simple error that could be resolved quickly without the need to get MOHRE involved.
However, if it keeps happening, you can file a complaint by contacting MOHRE or registering a salary complaint through its website.
Know your rights
Understanding how the UAE’s electronic salary system works can make a big difference to how you navigate your working life in the UAE. Knowing when and how you should be paid, what your employer is responsible for, and what to do if something isn’t right can help you to feel more in control, giving you a sense of security when you’ve just moved countries.
Although it’s not your responsibility to register for WPS or submit salary files, it’s still useful to know what happens behind the scenes. That way, if your salary payment is delayed or doesn’t match your contract, you’ll be better prepared to raise the issue and get it resolved. Staying informed enables you to protect your rights. Plus, it gives you one less thing to worry about when you’ve just moved abroad to an unfamiliar country.
FAQs
What are the new rules for WPS in the UAE?
The WPS rules in the UAE came into force in 2009. These rules were put in place to protect workers by ensuring that their salaries are paid fairly, in full, and on time. The most recent updates include stricter penalties for late payments and the requirement that employers pay at least 80% of registered employees on time.
Who is excluded from WPS salary?
Certain employees, like domestic workers and government employees, are not covered by the WPS salary regulations. Freelancers and people who are working on short-term project visas may also fall outside of the system, depending on the details of their contracts.
How to pay a salary through WPS UAE?
To pay a salary through WPS, employers must register with MOHRE. Then, they must prepare and submit monthly SIFs to their WPS agent. Once these documents are verified, the employer’s bank will process the salary transfer and pay the money over to the employees’ bank accounts or payroll cards.