UAE clarifies that workers’ salaries must be paid without deductions under WPS

Abu Dhabi: The Central Bank of the UAE announced that it has introduced amendments to the Wage Protection System (WPS) to provide greater safeguards for workers’ salaries in the private sector and to protect their rights. Saif Al Dhaheri, Assistant Governor for Banking Operations and Payment Systems at the Central Bank, stated that the Bank has implemented modifications to the WPS to ensure that workers receive their full wages, in collaboration with the Ministry of Human Resources and Emiratisation (MoHRE).

Al Dhaheri explained, during a panel discussion held as part of the Middle East and North Africa Financial Inclusion Leaders Summit 2025, organiSed by the Central Bank in its inaugural edition over the past two days, that the Central Bank redesigned the WPS so that once a worker’s salary is processed through the system, a notification is automatically sent to the Ministry of Human Resources and Emiratisation to verify that the salary has been paid as required. In cases of deductions or non-payment, the Ministry takes appropriate action.

He added: “We found at the Central Bank that 80% of workers’ salaries are transferred directly as remittances to their families. Therefore, we are working to reduce remittance costs as much as possible to enable workers to save a portion of their income. This is the first benefit they receive. The second is the Jayoon card, which is the best local payment solution for conducting transactions within the UAE.”

Al Dhaheri continued: “Workers—often referred to as the ‘blue-collar’ segment—and other individuals were central to all the studies we conducted at the Central Bank. In designing the UAE’s financial platforms, we ensured that no distinction is made between blue-collar workers and other individuals. We made a fundamental decision that whether someone earns Dh1,000 or Dh1 million, they must have equal access and benefit from all financial services.”

He further noted: “The UAE has a highly mature financial system, and banks offer a wide range of banking services and financing solutions that meet the needs of individuals and businesses.” He also highlighted that 72% of blue-collar workers have bank accounts through which they receive their wages via the WPS, and many of them also use digital wallets or other financial-benefit tools.

Salary payments

Under the UAE’s Wage Protection System—implemented since 2009 to support the objectives of the Ministry of Human Resources and Emiratisation—every worker and employee in the UAE is entitled to receive their full salary on the due date. Private-sector employers are responsible for paying salaries in full and on time through the WPS to avoid any violations or penalties.