UAE WPS Compliance Guide 2026: Wage Protection System Explained

What is the Wage Protection System (WPS)?

Quick Summary: WPS is the UAE government's mandatory electronic salary transfer system. All private sector employers registered with MoHRE must pay salaries through approved banks or exchange houses. Failure to comply results in fines up to AED 50,000, work permit suspensions, and potential business closure.

The Wage Protection System was launched in July 2009 under Ministerial Decree No. 788 as a joint initiative by the Ministry of Human Resources and Emiratisation (MoHRE) and the Central Bank of the UAE. It ensures employees receive their wages on time and in full.

In 2026, MoHRE has strengthened digital monitoring and real-time enforcement, making compliance more critical than ever.

Who Must Comply with WPS?

Mandatory Compliance

• All private sector companies registered with MoHRE
• Most free zone companies (varies by free zone)
• Companies with 5 or more employees

Exemptions

The following are exempt from WPS requirements:

Employers:

• UAE nationals owning fishing boats or public taxis
• Banks
• Houses of worship
• Government and semi-government entities

Employees:

• Domestic workers
• Those with pending wage-related judicial complaints
• Employees reported for work abandonment
• New employees during their first 30 days
• Employees on documented unpaid leave

Free Zone Considerations

Most free zones follow federal WPS requirements. However:

• DMCC: WPS mandatory as of January 2024
• Meydan Free Zone: WPS optional (direct bank transfers allowed)
• DIFC/ADGM: Separate employment frameworks apply

Check with your specific free zone authority for requirements.

How WPS Works

The system operates in four stages:

1. Submission

Employers prepare a Salary Information File (SIF) containing all wage details and submit it to their WPS agent (bank or exchange house).

2. Review

MoHRE and the Central Bank verify the SIF against employment contracts and compliance requirements.

3. Authorization

Upon successful verification, a payment order is issued to the WPS agent authorizing salary disbursement.

4. Disbursement

Salaries are transferred to employee bank accounts or wage cards. MoHRE monitors these payments in real time.

Payment Deadlines

When Are Salaries Due?

Wages are due from the first day of the month following the pay period specified in the employment contract. If no period is specified, employees must be paid at least once per month.

The 15-Day Rule

An employer is considered late in paying wages if payment is not made within 15 days after the due date.

Example:

• Pay period: January 2026
• Due date: February 1, 2026
• Late after: February 16, 2026

Consequences of Late Payment

Days Delayed	Consequence
1-15 days	Grace period
16+ days	Flagged as late payment
17+ days	Work permit suspension possible
60+ days	Fines and MoHRE inspection

Salary Information File (SIF) Requirements

The SIF is the core document for WPS compliance. It must contain:

Company Details

• Company name and ID
• Payroll period
• Total employee count
• Total salary amount

Employee Information

• Full name
• Labour card number
• Bank account or wage card number
• Basic salary amount
• Days worked
• Overtime hours (if applicable)
• Allowances
• Deductions

SIF Submission Tips

• Gather accurate payroll data before submission
• Format according to WPS specifications
• Review for errors before submitting
• Submit within required timeframes
• Keep records of all submissions

How to Register for WPS

Step 1: Contact MoHRE

Visit the MoHRE website or service center to initiate WPS registration.

Step 2: Select a WPS Agent

Choose an approved financial institution:

• UAE banks
• Exchange houses
• Central Bank-approved financial institutions

Step 3: Open a Corporate Account

Open a business account with your chosen WPS agent.

Step 4: Submit Documentation

Required documents:

• Valid trade license
• Company registration documents
• Employee list with bank account details
• Authorized signatory documents

Step 5: Complete Registration

Submit the WPS registration form and sign the service agreement with your agent.

Step 6: Add Employees

New employees must be added to WPS within 30 days of their start date.

Penalties for Non-Compliance

Financial Penalties

Violation	Penalty
Late salary payment	AED 1,000+ per employee
Inaccurate SIF (intentional)	Up to AED 5,000
Non-registration	Fines + work permit restrictions
Multiple violations	Up to AED 50,000 total

Companies with 100+ Employees

Offense	Consequence
First	Warning + potential work permit restrictions
Second	Complete work permit suspension
Third	AED 5,000 per unpaid worker

Companies with Fewer Than 100 Employees

Offense	Consequence
First	Formal warning
Second	Work permit restrictions
Third	Fines + potential administrative closure

Other Consequences

• Company classification downgrade
• MoHRE inspections
• Business suspension
• Reputational damage

2026 Updates and Enforcement

Stricter Digital Monitoring

MoHRE now monitors payroll submissions in real time via the WPS platform. Late payments are flagged automatically.

Emirati Minimum Wage Enforcement

As of January 1, 2026, Emirati employees must earn minimum AED 6,000 per month. WPS validates this against Emiratization quotas.

Deadline: Employers have until June 30, 2026 to update existing Emirati contracts. After this date:

• Non-compliant Emiratis excluded from quota calculations
• Work permit processing may be blocked

Enhanced Inspections

Digital payroll monitoring triggers automatic inspections for:

• Repeated late payments
• SIF discrepancies
• Salary amounts not matching contracts

Common WPS Mistakes to Avoid

1. Missing the 30-day window for new employees

Add new hires to WPS within 30 days or face compliance issues.

2. SIF data mismatches

Ensure SIF details match employment contracts exactly — including salary amounts and allowances.

3. Paying via cash or cheque

Cash and cheque payments are not compliant. All salaries must go through WPS channels.

4. Ignoring free zone requirements

Don't assume your free zone is exempt. Verify with your authority.

5. Late submissions

Submit SIF files on time every month. Late submissions trigger automatic flags.

6. Incorrect employee bank details

Verify bank account numbers before submission to avoid failed transfers.

WPS Compliance Checklist

Initial Setup:

• Register company with MoHRE
• Select approved WPS agent
• Open corporate account
• Submit required documentation
• Complete WPS registration

Monthly Process:

• Prepare accurate payroll data
• Generate SIF file
• Review for errors
• Submit before deadline
• Verify successful disbursement
• Reconcile any exceptions

Ongoing Compliance:

• Add new employees within 30 days
• Update employee details promptly
• Monitor MoHRE notifications
• Conduct periodic audits
• Keep records of all transactions

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Based on Ministerial Decree No. 788 of 2009, Ministerial Resolution No. 598 of 2022, and MoHRE regulations through 2026. For specific situations, consult MoHRE or a UAE employment lawyer.