UAE invites private sector feedback on updated wage protection system

Abu Dhabi: The Ministry of Human Resources and Emiratisation (MoHRE) has invited private sector professionals and labour market stakeholders to submit feedback on the latest update to the Wage Protection System, in a move aimed at strengthening participation and improving the country’s employment framework.

Through its official website and social media platforms, the ministry announced that it will receive submissions until the end of April 2026. Surveys have also been launched to capture private sector reactions and insights on the system’s update, in a move aimed at strengthening engagement with labour market specialists and stakeholders across the country.

The ministry said proposals and comments can be submitted until 30 April 2026 through the federal digital consultation platform “Sharek. Emirates”, adding that all contributions will be reviewed and considered as part of the final rollout of the upgraded system.

The initiative is part of efforts to support a stable and competitive labour market, enhance the protection of workers’ rights and reinforce sustainable economic growth in the UAE. MoHRE said the updated Wage Protection System is designed to improve salary payment mechanisms, expand approved digital payment channels and increase operational efficiency.

The ministry launched the updated WPS in December 2025 as part of a strategic step to modernise the sytem and enhance efficiency in line with the labour market’s digital transformation.

The update enables employers to manage payroll processes through an expanded range of approved digital platforms and channels integrated with financial institutions licensed by the ministry. This integration ensures faster and more accurate transfers while maintaining regular wage disbursement. The enhanced system also improves transparency and compliance, accelerates registration and verification procedures, reduces wage delays and labour disputes, and supports electronic integration with relevant government and financial systems.

MoHRE reported that it has already received numerous electronic comments and feedback on the updated system, including positive responses from stakeholders.

The WPS currently covers more than 99% of private sector workers, with companies transferring salaries through the system totaling over Dh35 billion per month.

The upgraded smart WPS version allows employers to manage payroll operations more easily and efficiently through real-time data integration between ministry systems and financial institutions, via the Central Bank of the UAE and digital platforms operated by financial entities. This enables the use of advanced digital solutions and innovative applications to deliver proactive services.

The system also accelerates registration and verification processes, enhances communication between companies and relevant authorities, improves performance efficiency, and achieves data integration within a secure and reliable digital environment. It represents a qualitative shift in wage management by enabling fully digital procedures — including data extraction from ministry systems, precise tracking of salary transfers, and ensuring workers receive wages on time according to the highest transparency and protection standards. This, in turn, supports a sustainable work environment and strengthens confidence in the national economy.

Additionally, the enhanced version contributes to labour market stability through stronger governance of the WPS by regulatory authorities, reinforces employer compliance with labour laws and regulations, and improves labour market efficiency and flexibility through integrated digital financial systems.

The updated version aims to strengthen transparency, compliance and data accuracy, while enabling real-time connections between government systems, financial institutions and the Central Bank.

MoHRE said the enhanced digital framework also supports quicker registration and verification procedures, improves communication between companies and regulators and promotes secure data exchange within a trusted digital environment.

In recent weeks, the ministry has received a number of positive responses and technical observations from employers and specialists, reflecting growing confidence in the platform’s effectiveness. The feedback process will help refine the system and ensure it meets the evolving needs of businesses and workers alike.

The ministry emphasised that the reforms are part of the UAE’s ongoing digital transformation agenda and its commitment to aligning labour governance with international best practice. 

UAE labour legislation requires private sector employers to pay workers’ wages monthly according to the amounts and timelines specified in employment contracts through the Wage Protection System — an innovative electronic salary transfer mechanism operated via banks, financial institutions, and approved exchange houses.

The system’s mandatory scope has also been extended to certain domestic worker professions, while remaining optional for others within the category.

WPS ensures private sector employees receive their wages and full financial entitlements on time, as guaranteed under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, its executive regulations, and related ministerial decisions. The legislation also explicitly stipulates equal pay for women and men performing the same work or work of equal value.

1.   Obtain the necessary licensing from the Central Bank of the UAE and comply with its regulatory framework.

2.   Maintain a current account with the Central Bank.

3.   Secure access rights to the Central Bank network and successfully complete onboarding requirements.

4.   Obtain access to Central Bank applications and complete associated compliance procedures.

5.   Adhere to the rules, roles, and responsibilities outlined in the UAE WPS Rulebook.