What is the UAE’s Wage Protection System (WPS) and how it protects your salary

Dubai: In the UAE, getting your salary on time is your right. The UAE Labour Law - Federal Decree-Law No. 33 of 2021 requires employers to pay wages on the due date through the Wage Protection System (WPS) or another MOHRE-approved method.

According to the law, all establishments registered with the Ministry of Human Resources and Emiratisation (MOHRE) must pay their employees’ wages on the due date.

Depending on the system used, wage payments can be processed WPS or any other MOHRE-approved method.

The WPS was introduced in 2019 as a mandatory electronic salary transfer system in the UAE. It ensures that employers pay wages fully and on time through authorized banks and financial institutions.

The WPS, launched by the UAE Central Bank, provides a transparent record of wage payments. It protects employee rights and allows MOHRE to monitor compliance, helping to reduce labor disputes and ensure fair treatment.

All establishments registered with MOHRE must pay employees’ wages on the due date through the WPS. Employees must receive their wages on the first day of the month following the registered payday specified in the employment contract. If the contract does not specify a payday, wages must be paid at least once per month.

An employer is considered late if wages are not paid within the first 15 days after the due date, unless the employment contract specifies a shorter period.

Under the WPS, private sector salaries are transferred through banks, exchange houses, or other financial institutions authorized by the UAE Central Bank.

The WPS allows MOHRE to maintain a database of wage payments in the private sector and monitor employers’ compliance with timely, full payments. Salaries can be paid in Emirati Dirham or any other currency mutually agreed upon in the employment contract.

Ministerial Resolution No. 598 of 2022 outlines penalties for employers who do not comply with the WPS. These may include:

MOHRE may suspend an employer’s file if wages are not paid within two months of the due date. Employers are considered late if wages are not processed through WPS within one month of the due date. Wages become due on the first day of the month following the period specified in the employment contract.

If your employer has not paid your salary on time despite your efforts to resolve the issue, you can escalate the matter by filing a labour complaint with MOHRE.

Employees can submit a confidential complaint regarding delayed or unpaid wages, and their identity will be kept private to protect them from any repercussions. Complaints can be filed through the MOHRE app or by calling the toll-free number 600590000.