WPS (Wage Protection System) is an electronic salary transfer system implemented by the United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation (MOHRE) to ensure that employees receive their salaries on time and as per their employment contracts.
Under the WPS system, all employers in the UAE needs to transfer their employees’ salaries through a registered bank or financial institution approved by the central bank of UAE to issue services. This system applies to all companies operating in the UAE, whether they are private sector companies or government entities.
The WPS UAE was introduced to protect employees from salary delays, enhance transparency in worker’s wages, and ensure that they get their dues as per their employment contracts. Further, system also allows the MOHRE to monitor the payment of salaries to employees and to ensure that employers comply with WPS UAE labor laws and regulations.
If you are an employer in the UAE, it is mandatory for you to be on the WPS UAE. The registration process for WPS is quite simple. These are the list of documents required for registering in the Wage protection system through the MOHRE website.
Once the employer has successfully created a WPS account and listed all the required details, the next step is to process the payment through WPS UAE. These are the following steps in the WPS payment process.
Step 1- The company needs to open a UAE-based bank account or financial institution to process the salaries.
Step 2- The WPS agreement between the company and the bank agent.
Step 3- The company issues the instructions to transfer salaries to banks or financial institutions.
Step 4- The bank notifies about the wages protection system in the UAE and sends employee details through the salaries information file (SFI) to the UAE central bank.
Step 5 – The UAE central bank then sends the final details to the Ministry of Human Resources and Emiratisation (MOHRE) for final verification.
Step 6- Once the verification is done, the MOHRE issues authorization to the employer’s bank or agent to process the employee’s wages.
WPS is an electronic wage transfer system that facilitates timely payment of wages to employees through approved banks/exchanges. It helps in maintaining transparency and adheres to the UAE Labour Law.
WPS UAE stands for Wage Protection System. It is a system introduced by MoHRE to guarantee timely and secure salary payment.
A company has to register itself with MoHRE, open a corporate bank account, and liaise with a WPS UAE -approved financial institution to upload payroll files in the required format. Once approved, salaries can be processed via WPS on a monthly basis.
Status on WPS compliance can be checked through the MoHRE online portal or mobile app using the company’s Labour card or Establishment number. Employees can also request confirmation of their status from either MoHRE or the PRO/HR.
