If you manage payroll in UAE for your employees, you’ve probably heard of WPS. But if this is your first time, let’s run you through it.
If you are especially looking for information related to WPS in UAE, this guide will provide a comprehensive overview.
What is WPS?
WPS stands for the Wages Protection System. The Wages Protection System is a system of electronic salary transfer that makes sure companies pay their employees through a WPS agent such as a bank, exchange house, financial institution or company like Edenred to guarantee timely and accurate payment of wages to your employees.
Why was it introduced?
The Wages Protection System (WPS) was introduced in 2009 to protect employees’ rights and improve transparency in salary payments across the UAE.
Developed by the Central Bank of the UAE to support the Ministry of Labour—now the Ministry of Human Resources and Emiratisation (MoHRE)—WPS creates an electronic record of wage payments. This enables authorities to monitor payments and identify delayed or unpaid salaries.
Employers registered with MoHRE must pay wages through WPS or other Ministry-approved systems in accordance with the applicable salary payment requirements. By making salary payments traceable, WPS strengthens employer accountability and supports compliance.
Which companies are required to comply with WPS regulations?
All companies in the UAE registered with the Ministry of Human Resources and Emiratization (MOHRE) across all sectors and industries as well as companies in certain free zones such as Jebel Ali Freezone (JAFZA) and Dubai Multi Commodities Centre (DMCC) must comply with the WPS regulations.
All companies registered under the following authorities:
How does it work?
In order to process salaries through WPS, you must have a contract with a WPS agent such as bank, exchange house, financial institution or Edenred that’s registered with the MOHRE. After you have run payroll from your side, your WPS agent will be responsible for the payment of wages to your employees.
Here’s how WPS works:
1. Registration
First you need to register on the MOHRE website and set up your account with your login credentials.
You will need to provide the following:
- Your corporate bank account information.
- An employee list with details of the WPS agent your company processes salaries with. They should be registered with MOHRE.
- The bank or payroll card your employees receive salaries with.
- The date on which salaries need to be paid.
2. Transfer of salaries
After you’ve created your account, you need to create and submit the Salary Information File (SIF). The Salary Information File (SIF) is an excel sheet with the employee list and the details of the WPS agent your company processes salaries with.
When creating a SIF, the information you need are:
- The wages or salaries (basic salary, deductions, allowances, overtime payment, additional bonus, among others) of each employee, i.e., the employee details record (EDR)
- The 14-digit labour card number in the card issued by the MOHRE when the employee visa is secured
- The routing code of the employee’s receiving bank or WPS agent, as confirmed by Edenred.
- Employee bank account number (IBAN)
- Start date of salary
- End date of salary
- Number of days salary paid
- Fixed income, including basic salary and applicable fixed allowances.
- Variable salary
- Number of unpaid leave days during the salary period.
The SIF also includes a Salary Control Record (SCR) containing employer identification details, the employer bank’s routing code, file creation date and time, salary month, employee record count, total salary amount and payment currency. Follow Edenred’s current template and submission instructions.
Every time you want to pay salaries, you must fill out and submit the SIF on the WPS. You need to export the excel file as .CSV and then rename it as .SIF while saving it.
It’s important to ensure there are no errors in your SIF to get quick validation from the Central Bank and MOHRE. With Edenred Payroll you don’t have to worry about this, we’ll ensure your file is correct and follows all the guidelines.
3. Payment of Wages
WPS salary check by the MOHRE and the Central Bank
After submitting the SIF to the WPS, the MOHRE and Central Bank will verify that all the details you submitted in the SIF are accurate and in compliance with the WPS requirements.
These are some mandatory rules to meet the WPS requirements while processing salaries:
- Under Ministerial Resolution No. 340 of 2026, an establishment is considered WPS-compliant if it transfers at least 85% of the total wages due within the specified timeframe, taking lawful deductions into account. This concerns wage amounts, not employee headcount, and does not authorise employers to withhold contractual wages or affect employees’ rights to claim outstanding amounts.
- Under Ministerial Resolution No. 340 of 2026, effective from 1 June 2026, salaries for the previous month are due on the first day of each Gregorian month for MoHRE-regulated private-sector establishments. For example, June salaries are due on 1 July. Employers should complete payroll preparation, funding and submission early enough to meet this deadline.
- Pay employees’ contractual wages by the applicable due date each month. Employers must not treat any enforcement timeline as permission to delay or skip salary payments.
- Make sure that you pay any bank fees, expenses, or provider fees related to the payment.
Authorization by WPS
If the Central Bank approves your salary check, they will issue a payment order to your WPS agent. If there are any mistakes in the SIF, you will receive an email asking you to update the SIF to correct the errors. Avoiding errors would ensure you don’t get fines or penalties for payment delays.
Transferring money to your employees
After your WPS agent receives the payment order, they will transfer the money to your employees. If you are partnered with a company like Edenred UAE, your employees will receive their salaries safely and securely in a WPS payroll card called C3Pay.
Summary
- The Wage Protection System (WPS) was introduced to protect employees’ rights by ensuring secure and timely payment of salaries through an electronic salary transfer system.
- All companies registered with the MOHRE and in certain freezones must follow WPS.
- How does the WPS work:
- Register your company with the MOHRE.
- Create and submit the SIF to WPS through a WPS agent such as Edenred UAE
- Ensure you follow the WPS guidelines, and your SIF does not have any errors, so salaries are transferred easily.
FAQs
WPS stands for the Wages Protection System, an electronic salary transfer system introduced in 2009. It enables employers to pay wages through approved agents, including providers such as Edenred, while helping authorities monitor salary payments. The system was introduced to protect employees’ rights and improve transparency. Learn more from the Central Bank of the UAE.
Employers registered with the Ministry of Human Resources and Emiratisation (MoHRE) must comply with applicable WPS requirements, subject to regulatory exemptions. Companies in free zones should confirm their obligations with their respective authority. Refer to the official UAE salary payment requirements.
Employers arrange payroll services with an approved bank or WPS provider, such as Edenred. After calculating salaries, the employer prepares and submits the Salary Information File (SIF) and provides the required funding. Salary payments are then processed through WPS to employees’ designated accounts or salary cards. Employers should check payment statuses to confirm successful completion.
A SIF is a structured payroll file containing employee salary payment details and employer control information. Employee records include the required identification number, receiving bank or agent routing code, account or salary card details, salary period dates, days in the pay period, fixed and variable income, and unpaid leave days during that period.
Employer control information includes employer identification details, the salary month, employee record count, total payment amount and currency. Use Edenred’s SIF template alongside the latest instructions from the Edenred payroll team.
The standard employee record includes unpaid leave days during the relevant salary period, rather than annual leave entitlement. Fixed income includes basic salary and applicable fixed allowances. Follow your provider’s current SIF specifications.
Under Ministerial Resolution No. 340 of 2026, effective from 1 June 2026, salaries for the previous month are due on the first day of each Gregorian month for MoHRE-regulated private-sector establishments. For example, June salaries are due on 1 July. Employers should prepare, fund and submit payroll early enough to meet this deadline.
An establishment is considered compliant if it transfers at least 85% of the total wages due within the specified timeframe, taking lawful deductions into account. This concerns wage amounts, not employee headcount. It does not authorise employers to withhold contractual wages or affect employees’ rights to claim outstanding amounts. See the current official requirements.
WPS processing includes checks on file structure, identifiers, routing and account details, salary periods, employee record counts and payment totals. The Central Bank operates the payment system, while MoHRE uses wage payment information to monitor employer compliance. The Central Bank’s WPS overview explains the system’s payment and monitoring functions.
If a file or payment is rejected, review the error details provided by your bank or WPS provider, correct the issue and follow the required resubmission process. Check the final processing status to confirm successful salary payment. Submitting or correcting a SIF alone does not confirm that employees have received their wages.
Yes. Employers using Edenred can arrange salary payments to employees through C3Pay salary cards, subject to onboarding requirements. Contact the Edenred Payroll team for guidance on setting up salary payments for your workforce.
