WPS requires all UAE private sector employers to pay wages via an approved WPS agent within 15 days of the agreed pay date. A Salary Information File (SIF) must be submitted to an approved bank or exchange house. Late payment: AED 5,000 per employee per month (capped at AED 50,000 per employer).
What is WPS and who must comply?
The Wages Protection System (WPS) is a mandatory electronic salary monitoring system introduced by MOHRE and the Central Bank of UAE. It requires all private sector employers — mainland and most free zones — to transfer employee wages via a WPS-approved bank, exchange house, or financial institution.
Compliance covers all employees on UAE residence visas sponsored by the employer. GCC national employees on mainland contracts, domestic workers sponsored by the employer, and employees on free zone work permits are all covered (with free zone-specific WPS administered by the relevant authority).
DIFC employers use the DIFC-administered WPS portal; ADGM employers use ADGM’s system. Both are equivalent to mainland WPS in function — they monitor salary payment timing and method — but registration and reporting is through the respective authority’s portal, not MOHRE directly.
How WPS works — step by step
Register with a WPS agent
Choose a MOHRE-approved WPS agent — most UAE banks (Emirates NBD, FAB, ADCB, Mashreq etc.) and major exchange houses (Al Ansari, Al Fardan) are WPS agents. Register your company’s payroll account with the agent.
Generate the SIF file
The Salary Information File (SIF) is a standardised CSV format specified by MOHRE. It contains one row per employee: employee ID (from labour card), salary amount, currency, payment date, and allowances breakdown. Most payroll software generates SIF files automatically.
Submit SIF to your WPS agent
Upload the SIF file through your bank’s online portal or the exchange house’s WPS portal before the transfer. The agent validates the file against MOHRE’s employee database.
Transfer wages within 15 days
The funds must reach employees’ bank accounts within 15 days of the agreed pay date in the employment contract. The SIF submission date must match the transfer date.
MOHRE confirmation
MOHRE receives real-time confirmation from the WPS agent when salaries are transferred. Your MOHRE portal shows compliance status — green for on-time, red for late.
WPS penalties and enforcement
MOHRE monitors WPS in real time. If a salary is not transferred via WPS within 15 days of the due date, the employer is automatically flagged:
- First month late: AED 5,000 per affected employee. Employer is added to a restricted list — new work permit applications are blocked.
- Continued non-compliance: MOHRE may issue a stop-work order. Business licence renewal may be blocked.
- Maximum penalty per violation: AED 50,000 per employer (regardless of number of employees affected). But the cap applies per violation event — repeat months each attract the cap.
- Repeat violations: Referral to the Public Prosecution for criminal proceedings against the company and responsible officers.
Bank processing times vary — a salary submitted on day 14 may not credit employees until day 16. MOHRE’s system checks the date the funds land in employee accounts, not the submission date. Build a 3-day buffer into your payroll cycle.
Special cases: commission-only, part-time, and end-of-month salaries
- Commission-based employees: WPS applies to the fixed base salary portion. Variable commissions are tracked separately but must also be paid via WPS if they form part of the contractual wage.
- Part-time employees: Subject to WPS from the agreed part-time pay date. The 15-day rule applies to the fraction of pay.
- 31st-month salaries: If the pay date is 31 January and February has 28 days, MOHRE applies the 15-day rule from 28 February. Plan for short-month processing.
- New joiners mid-month: Prorated salary for the joining month must be paid via WPS along with regular payroll.
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Frequently asked questions
What is the WPS deadline in UAE?+
15 days from the agreed pay date in the employment contract. If the contract states the 1st of each month, wages must reach employees’ accounts by the 16th. The 15-day clock starts from the contractual pay date — not the date you process payroll.
What is the WPS penalty in UAE 2026?+
AED 5,000 per employee per month for late salary payment via WPS. Capped at AED 50,000 per employer per violation event. Repeat violations lead to work permit restrictions, licence renewal blocks, and potential criminal referral.
What is a SIF file for UAE WPS?+
The Salary Information File (SIF) is a standardised CSV format required by MOHRE for WPS salary submission. It includes one row per employee with their labour card ID, salary amount, currency, and allowances. Most payroll systems generate SIF files automatically.
Does WPS apply to free zone companies?+
Yes, for most free zones. Each free zone administers its own WPS portal but the rules (15-day deadline, SIF format) are equivalent. DIFC uses the DIFC WPS portal; ADGM uses ADGM’s system; other free zones typically use the mainland MOHRE WPS framework.
Can I pay salaries in cash and still comply with WPS?+
No. WPS requires wages to be transferred electronically through a WPS-approved agent (bank or exchange house). Cash payments, cheques, and foreign bank transfers do not satisfy WPS, even if received on time.
What happens if an employee doesn't have a UAE bank account?+
The employer must ensure the employee has a UAE bank account or an exchange house account enrolled in WPS before payroll is due. Some WPS agents offer dedicated employee WPS cards (prepaid cards) that satisfy the electronic transfer requirement.