Glossary / Compliance
Compliance

WPS

Wage Protection System — the UAE central bank's electronic salary transfer system that all mainland private-sector employers must use.

What is WPS?

The Wage Protection System is a mandatory salary payment scheme run by the UAE Central Bank and MOHRE. Employers must transfer salaries via a licensed WPS agent (bank or exchange) so payments are timestamped and traceable.

Consequences of non-compliance

  • Delayed salaries (>10 days late): MOHRE blocks new work permits.
  • 60+ days late: company is fined AED 1,000 per worker and referred to public prosecution.
  • Repeat offenders: downgraded to the highest MOHRE risk tier, disqualified from bulk permits.

Free-zone status

Most free zones now require WPS-equivalent compliance, though enforcement varies.

Sources

  • · UAE Central Bank WPS regulation
  • · MOHRE Ministerial Resolution No. 43 of 2022

Related terms

MOHRE
The UAE Ministry of Human Resources and Emiratisation — the federal body that regulates private-sector labour, work permits and Emiratisation compliance.
End-of-Service Gratuity
A statutory lump sum paid to employees on termination in the UAE, calculated on basic salary and years of service.

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