Wage Protection System (WPS) UAE 2025: Everything You Need to Know

The Wage Protection System (WPS) in the UAE is a digital salary transfer system established to ensure that employees in the private sector are paid accurately and on time. Managed by the Ministry of Human Resources and Emiratisation (MOHRE) in collaboration with the Central Bank of the UAE, WPS has been a cornerstone of labor market regulation since its launch in 2009.

As of 2025, new updates have been implemented to enhance wage transparency, compliance, and employee well-being across the UAE. Here’s everything you need to know about how WPS works, the latest changes, and how companies and employees can stay compliant.

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🏦 What Is the Wage Protection System (WPS)?

The Wage Protection System (WPS) is an electronic salary transfer system that allows employers to pay workers’ wages through approved financial institutions. It ensures that salaries are distributed through official channels, minimizing disputes and improving transparency.

Under the system, all private sector employers registered with MOHRE must transfer salaries through banks, exchange houses, or financial service providers that are approved by the UAE Central Bank.

⚙️ How the WPS Works

Here’s a simplified breakdown of how the system operates:

• Employers open an account with an approved bank or financial service provider.
• They prepare a salary information file (SIF) that contains employee details, wages, and payment dates.
• The file is sent to the bank, which forwards it to MOHRE and the Central Bank for verification.
• Once approved, salaries are transferred to employees’ accounts.

This streamlined process ensures that every transaction is traceable and that workers receive payments on time.

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🧾 WPS Coverage in 2025

As of 2025, the WPS applies to:

• All companies registered with MOHRE.
• Employees working under labor contracts in the private sector.
• Free zone companies that have voluntarily joined the system.

Government entities and domestic workers are not currently required to use WPS, although many domestic worker agencies have begun adopting similar systems for transparency.

🔄 WPS UAE 2025: Latest Updates

In 2025, MOHRE announced several key updates to improve compliance and reduce delays in salary payments. According to a Khaleej Times report, these updates include:

• Stricter penalties for salary delays beyond 15 days.
• Automated suspension of new work permits for non-compliant employers.
• Enhanced digital tracking through MOHRE’s mobile app.
• Integration with the UAE Pass for easier employer registration and verification.

These changes are part of the UAE’s broader labor reform strategy to ensure fairness and transparency in the private sector.

📅 Salary Payment Timeline

Employers must pay salaries at least once a month or on the due date specified in the labor contract.

If wages are delayed:

• A delay of 16 days or more can result in warnings or fines.
• After 30 days, the company may be blocked from obtaining new work permits.
• Continued non-compliance may lead to legal action and public disclosure of violations by MOHRE.

Read more: UAE Labor Law

💸 Penalties for Non-Compliance

The MOHRE guidelines specify strict penalties for companies that fail to pay salaries on time. Depending on the duration of delay and company size, these may include:

• Suspension of new work permits.
• Fines starting from AED 5,000 per employee, up to AED 50,000 for repeated offenses.
• Referral to judicial authorities for serious or repeated violations.

Employers can track their compliance status through the MOHRE WPS dashboard or mobile app.

👷‍♀️ Employee Rights Under WPS

For employees, the WPS ensures:

• Regular and documented salary payments.
• Access to salary history through MOHRE or bank statements.
• The ability to file a wage complaint if payments are delayed or incorrect.

Workers can raise complaints directly via the MOHRE website, the MOHRE call center (800-60), or the UAE MOHRE mobile app.

🧠 Tips for Employers

To stay compliant with WPS in 2025:

• Register with MOHRE and ensure your company is linked to an approved financial institution.
• Submit salary information files before the monthly deadline.
• Keep employee details (IBANs, Emirates IDs, etc.) updated.
• Download the MOHRE app to track status updates.

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📊 Benefits of WPS

For employers and employees alike, the WPS offers several advantages:

For Employers:

• Avoid legal disputes and penalties.
• Build credibility with government authorities.
• Ensure smooth operations and compliance with UAE labor laws.

For Employees:

• Guaranteed salary payment security.
• Transparent documentation for financial services (e.g., loans, visas).
• Reduced workplace conflicts over pay.

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🌍 The Bigger Picture

The Wage Protection System (WPS) plays a crucial role in maintaining the UAE’s reputation as a fair and transparent labor market. By ensuring that employees are paid on time and through legal channels, it promotes a balanced relationship between employers and workers, a key goal in the UAE’s vision for a sustainable and equitable economy.

In summary, the WPS UAE 2025 continues to evolve to meet the growing needs of the modern workforce. Employers who stay compliant not only avoid penalties but also contribute to a stronger, fairer, and more transparent employment ecosystem.

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