UAE Wages Protection System (WPS)
The Wages Protection System (WPS) is an electronic salary transfer system that ensures employees in the UAE receive their wages in full and on time. It is managed by the Ministry of Human Resources and Emiratisation (MOHRE) and is mandatory for all mainland UAE private sector employers.
How WPS Works
- The employer processes payroll and prepares a Salary Information File (SIF) — a structured data file listing each employee's salary, bank details, and employment details
- The SIF is uploaded to an approved WPS agent (a bank or exchange house)
- The WPS agent processes the payment and notifies MOHRE
- MOHRE records the salary as paid in its monitoring system
Who Must Use WPS?
- All mainland UAE private sector employers
- Companies in certain free zones (check your specific free zone regulations)
- Excluded: companies in ADGM and DIFC (these have their own systems)
WPS Salary Deadline
Salaries must be paid by the last day of each calendar month for monthly-paid employees. A 10-day grace period applies before penalties are triggered, but best practice is to process before the calendar month end.
Consequences of WPS Non-Compliance
- MOHRE blocks the company from issuing new work permits
- The company is added to a MOHRE watchlist
- Administrative fines of AED 5,000 per employee for violations
- Potential blacklisting from government contracts
How Kounted Processes Your Payroll
Kounted prepares the SIF file and handles the WPS submission on your behalf each month. We deliver payroll reports by the 25th of the month to ensure timely processing and give you time to fund the payment account before the deadline.