Key points
- The Wage Protection System (WPS) is how MOHRE checks that private-sector salaries are paid on time and in full.
- Salaries are paid through an approved WPS agent: a bank, exchange house or other approved financial institution.
- Each month the employer sends a Salary Information File (SIF) with one line per employee.
- Errors in labour card or person ID numbers, IBANs and routing codes are the most common cause of rejections.
- Late or missing salary payments can lead to penalties and restrictions on new work permits.
What is WPS?
The Wage Protection System (WPS) is an electronic salary transfer system run by the Ministry of Human Resources and Emiratisation (MOHRE) with the Central Bank of the UAE. Employers registered with MOHRE pay salaries through WPS so the ministry can confirm that every worker is paid the right amount on time.
Who must use WPS?
Private-sector companies registered with MOHRE must pay their employees through WPS. Many free zones have their own payroll rules, and some use WPS too, so check with your free zone authority.
What is in a SIF file?
The Salary Information File (SIF) is a fixed-format file sent to your WPS agent each month. It has:
- One employee detail record (EDR) per employee: labour card or person ID number, the agent routing code, IBAN or account number, pay period, days in the period, fixed salary, variable pay and days of leave
- One salary control record (SCR) with the employer's MOHRE establishment ID, bank details, total salaries and number of records
Monthly WPS payroll steps
- Close attendance, overtime, leave and deductions for the month.
- Run payroll and have it approved.
- Generate the SIF file and check the totals against the payroll.
- Fund your account with the WPS agent and upload the SIF file.
- Check the agent's confirmation and fix any rejected records.
- Send payslips to employees.
Common mistakes
- Wrong or expired labour card / person ID numbers
- Incorrect IBAN or routing code for the employee's bank
- Totals in the control record that do not match the employee lines
- Paying a different amount from the contract without a recorded reason, such as unpaid leave
- Paying late in the month, which can be flagged by MOHRE
Payroll software with WPS built in
Ledgerline ERP and Khayyat run payroll with allowances, overtime, unpaid leave and advance recoveries, post it to the ledger, and produce the WPS salary file. Bayline does the same for garages and workshops.
Frequently asked questions
What happens if I pay salaries late?
MOHRE monitors WPS payments. Late or unpaid salaries can lead to administrative penalties, a block on new work permits and other action against the company.
Can I pay salaries in cash?
Employers covered by WPS must pay salaries through the system. Cash payments are not recorded by WPS and do not count as paid salaries.
Do I need to include employees on leave?
Yes. Employees on paid or unpaid leave are still included in the SIF file, with the days of leave and the amount paid for the period.
What is an employee's person ID?
It is the unique MOHRE number on the employee's work permit or labour card, used in the SIF file to identify the worker.
This guide is general information, not tax or legal advice. Rules change, so check the latest guidance from the Federal Tax Authority, the Ministry of Finance or MOHRE, or speak to a registered adviser.