WPS Applicability in UAE Free Zones
The Wages Protection System (WPS) is mandatory for all UAE mainland private sector employers. Its applicability in free zones varies.
Free Zones That Use WPS
Most UAE free zones require their registered companies to comply with WPS, including:
- DMCC (Dubai Multi Commodities Centre)
- JAFZA (Jebel Ali Free Zone)
- IFZA (International Free Zone Authority)
- RAK FZ and most RAK free zones
- Dubai South, Meydan, and most Dubai free zones
- Abu Dhabi free zones (except ADGM)
These companies must process payroll through an approved WPS agent and submit the Salary Information File (SIF) each month.
Free Zones Exempt from MOHRE WPS
- ADGM (Abu Dhabi Global Market) — regulated by the ADGM Employment Regulations 2019; uses the DEWS pension scheme instead
- DIFC (Dubai International Financial Centre) — regulated by DIFC Employment Law; uses the DEWS scheme
ADGM and DIFC Payroll (DEWS)
Companies in ADGM and DIFC must enrol employees in the DEWS (Defined Contribution End of Service Benefits) scheme:
- Employer contributes 5.83% of basic salary/month for employees with less than 5 years' service
- Employer contributes 8.33% of basic salary/month for employees with 5+ years' service
- Contributions are paid monthly to an approved DEWS provider (e.g. Zurich International)
- ESOB is accumulated in the fund rather than being a lump sum at termination
How to Confirm Your Free Zone Requirements
Check with your free zone authority or contact Kounted — we process payroll for companies in both WPS-bound and DEWS environments.