UAE launches smarter, fully digital Wage Protection System with real-time salary tracking

The Ministry of Human Resources and Emiratisation (MOHRE) has launched the enhanced version of the Wage Protection System (WPS), in collaboration with the Central Bank of the United Arab Emirates, Al Etihad Payments the national payment entity under the Central Bank as well as a group of accredited financial institutions through their digital platforms.

This comes as part of partnerships between the Ministry and e& Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Bank, reflecting ongoing efforts to safeguard rights, facilitate business operations, and capitalize on smart technologies to enhance transparency and competitiveness within the labour market, support digital transformation, and eliminate bureaucracy. The WPS covers more than 99% of private-sector employees, whose wages exceeding AED 35 billion monthly are processed through the system by their respective employers.

In a press statement, the Ministry said that the upgraded smart WPS enables employers to manage wage payments quickly and seamlessly through real-time data integration between MOHRE’s systems and financial institutions via the Central Bank. This is facilitated through the digital platforms of participating financial institutions, offering users advanced, proactive services powered by intelligent digital solutions and innovative electronic applications.

The Ministry added that the enhanced version accelerates registration and verification processes and strengthens communication between companies and relevant authorities, boosting performance efficiency and ensuring integrated data within a secure and trusted digital environment. The update represents a significant leap in wage management through direct electronic integration, enabling employers to complete all procedures digitally by retrieving data directly from MOHRE’s systems.

The upgraded system allows for high-precision tracking of salary transfers and ensures workers receive their wages on time, in line with the highest standards of transparency and protection. This supports a sustainable work environment and reinforces confidence in the national economy.

The enhanced version also strengthens labour-market stability by improving the governance of the WPS framework through regulatory oversight and reinforcing employer compliance with the Labour Relations Regulation Law and related decisions. It further boosts the efficiency and flexibility of the labour market through an integrated digital financial ecosystem. Additionally, the system provides an accurate database that supports planning and strategic decision-making, protects the rights of all parties through an automated, intelligent monitoring framework, and enhances integration between government, banking, and financial entities to ensure transaction governance, reduce wage-related labour disputes, and improve transparency and competitiveness all in alignment with the UAE Vision 2031 objectives.

The new WPS update reflects the UAE’s commitment to strengthening transparency and ensuring a fair, attractive working environment built on balanced relations between employers and workers. It marks a comprehensive digital transformation in labour-market management and financial-operations governance by expanding the base of participating financial institutions, improving the efficiency of wage-transfer processing, and enabling businesses to seamlessly manage their financial operations through integrated digital platforms.

It is worth noting that UAE labour legislation requires private-sector establishments to pay employee wages on a monthly basis, in the amount and on the date agreed upon in employment contracts, through the WPS an innovative electronic system that facilitates wage transfers via accredited banks, financial institutions, and exchange houses.

The UAE Government is committed to implementing various measures to ensure fair labour practices and protect workers’ rights. Among these measures is the Wage Protection System, launched in July 2009. Understanding how salaries are processed under this system is essential for both employers and employees.

MOHRE launched the Wage Protection System as a comprehensive electronic mechanism for transferring employee salaries, ensuring that employers pay wages through a secure and transparent electronic channel.

The WPS requires all private-sector establishments to register their employees in the system to guarantee timely and transparent salary payments.

Under this system, employers must transfer wages directly to employees’ bank accounts, ensuring a secure, accurate, and efficient payroll process. Employers are also required to submit monthly wage data to the WPS database, including the basic salary, allowances, and any deductions.

The WPS ensures that employees are paid on time, enhancing financial stability and security. It also elevates transparency in payroll transactions by digitizing wage payments, ensuring employers are fully accountable for timely salary disbursement and for maintaining accurate reporting.

Compliance with the WPS is a legal requirement. Failure to adhere to the system may result in penalties and fines for employers. Delayed or unpaid salaries may lead to restrictions on work permits and fines of up to AED 5,000 per employee, in addition to other legal consequences.

Providing false information or issuing fraudulent pay slips is subject to similar penalties.

Non-compliance can also damage a company’s reputation, hinder its ability to attract talent, and expose it to potential operational restrictions.