The Ministry of Human Resources and Emiratisation (MoHRE) has unveiled an enhanced version of the Wage Protection System (WPS) to streamline salary management for employers. This improvement is achieved through seamless data integration between MoHRE’s systems and financial institutions via the Central Bank.
This upgrade was developed in partnership with the Central Bank and Al Etihad Payments — the national payments service provider owned by the Central Bank — alongside several MoHRE-approved financial institutions through their digital platforms.
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The Wage Protection System encompasses over 99% of private-sector employees, facilitating the transfer of their wages through the system by their employers, with monthly transfers exceeding Dh35 billion.
The new system allows customers to leverage smart digital solutions, cutting-edge applications, and top-tier proactive services.
MoHRE highlighted that the upgraded version accelerates registration and verification processes, enhances communication between businesses and relevant entities, boosts performance efficiency, and fosters data integration, ensuring a secure and reliable digital environment.
This update represents a significant advancement in wage management, featuring direct electronic integration. According to the Ministry, the upgraded system empowers employers to manage all processes digitally by accessing data from MoHRE systems, precisely monitoring salary transfers, and guaranteeing timely wage payments to workers, adhering to the highest standards of transparency and protection. This initiative supports a sustainable work environment and strengthens trust in the national economy.
The enhanced version also promotes labor market stability by relying on oversight bodies to bolster governance within the WPS, ensuring employer compliance with the Federal Decree-Law on Employment Relationships and related regulations. It further enhances labor market efficiency and flexibility through integrated digital financial systems.
Furthermore, the system offers a precise database to aid strategic planning and decision-making, safeguarding the rights of all parties with a smart, automated oversight framework. It enhances integration between government, banking, and financial institutions to ensure transaction governance, minimize labor disputes from delayed or unpaid wages, and boost transparency and competitiveness, aligning with the ‘We the UAE 2031’ vision.
The updated WPS reflects the UAE’s dedication to enhancing transparency and offering an attractive, equitable work environment, ensuring a balance between workers and employers. It signifies comprehensive digital transformation in line with international best practices in labor administration and financial governance by broadening the range of participating financial institutions, improving transfer processing efficiency, and integrating with financial institutions’ digital platforms to enable businesses to manage their financial operations effortlessly and effectively.
UAE labor market legislation mandates private-sector businesses to pay workers’ wages monthly, in the agreed amount and timeframe as specified in the employment contract, via the Wage Protection System, an innovative electronic system that facilitates wage transfers through approved banks, financial institutions, and exchange houses.
