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Compliance systemsUAEUpdated 2026-10-18

WPS in the UAE: how the Wage Protection System works (2026 rules)

How the UAE Wage Protection System works: the SIF file, wages due on the 1st since June 2026, the 85% threshold and penalties for late pay.

The Wage Protection System (WPS) is how the UAE checks that private-sector employees are paid in full and on time. Every mainland employer registered with the Ministry of Human Resources and Emiratisation (MOHRE) pays salaries through a WPS agent: a bank, an exchange house or another approved financial institution. The agent reports each payment to the ministry.

How a WPS payroll run works

  1. Prepare the payroll. Calculate each employee’s fixed and variable pay for the month.
  2. Create the SIF. The Salary Information File lists each employee’s labour card or personal number, the agent and account (or card) details, fixed and variable pay, and days on leave. Many payroll software tools export it directly.
  3. Fund and upload. Transfer the total to your WPS agent and upload the SIF through its portal.
  4. Agent pays and reports. The agent credits each employee and sends the record to MOHRE, which matches it against the work permits on file.

Employees without a bank account can be paid through a payroll card issued by the agent.

The 2026 rules: due on the 1st, 85% threshold

Ministerial Resolution 340/2026 replaced the 2022 rules from 1 June 2026:

  • Wages are due on the 1st of the month after the month worked.
  • An establishment counts as compliant when it pays at least 85% of total wages due through WPS or another MOHRE-approved channel. The previous threshold was 80%.
  • The old 15-day grace period is gone. Enforcement escalates by the number of days after the due date:
Days late Reported MOHRE measure
2 Warnings to the employer
5 New work permits suspended
11 Fines and downgrade to Category 3 for repeat cases
16 Labour disputes opened automatically (25+ workers)
21 Travel bans and referral to the Public Prosecution

DIFC and ADGM are outside the scope of the resolution.

Practical tip: Lock your payroll cut-off around the 20th–25th so the SIF can be funded and uploaded before month-end. A rejected line, usually a wrong IBAN or personal number, can push you below the compliance threshold if you fix it late.

Common WPS problems

  • Mismatch between the SIF and the work permit. The salary in the file differs materially from the contract registered with MOHRE.
  • Employees on leave or exiting. Report them correctly: unpaid leave days go in the leave field, and final settlements in the variable pay field.
  • New joiners whose labour card isn’t issued yet. Agree with your agent how to include them.
  • Multiple entities. Each establishment has its own MOHRE number and needs its own SIF.

Frequently asked questions

What does WPS mean in the UAE?
The Wage Protection System, an electronic salary transfer system run by MOHRE with the Central Bank. Employers pay salaries through approved banks, exchange houses or financial institutions, which report each payment to the ministry.
When is salary considered late in the UAE?
Under Ministerial Resolution 340/2026, in force from 1 June 2026, wages are due on the 1st of the month after the month worked. MOHRE starts alerts within days, and new work permits can be suspended soon after.
Do free-zone companies use WPS?
MOHRE's WPS covers mainland establishments registered with the ministry. Free zones follow their own regulations; some run their own salary-reporting requirements, and DIFC and ADGM have separate employment laws.