UAE Wage Protection System (WPS)
Ensure timely and compliant salary payments through MOHRE's Wage Protection System. Generate SIF files, track filing deadlines, and avoid establishment downgrades.
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WPS Compliance Dashboard
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WPS Salary Components in SIF File
WPS Salary Components in SIF File
| Component | SIF Field | Description | Mandatory |
|---|---|---|---|
| Basic Salary | Fixed Component | Monthly basic salary as per contract | Yes |
| Housing Allowance | Fixed Component | Included in fixed pay | Yes |
| Variable Pay | Variable Component | Commissions, overtime, bonuses | If applicable |
| Deductions | Deductions | Absences, loans, penalties | If applicable |
| Net Salary | Net Amount | Total amount transferred to employee | Yes |
| Leave Salary | Variable Component | Paid leave encashment | If applicable |
WPS Salary Calculation Example
Employee with contract salary of AED 8,000/month, 2 days overtime, AED 500 transport deducted
The SIF file must show fixed, variable, and deduction components separately. Net amount is what gets transferred to the employee's bank account via WPS.
WPS Filing Deadlines & Penalties
WPS Filing Deadlines & Penalties
| Timeline | Status | Consequence | MOHRE Action |
|---|---|---|---|
| Within 15 days of salary due date | Compliant | None | No action |
| 16-30 days late | Warning | Warning issued to establishment | Alert notification |
| 31-60 days late | Non-compliant | Work permit suspension | New permits blocked |
| 60+ days late | Severe violation | Establishment downgrade + fines | AED 5,000+ per worker fine, potential closure referral |
Understanding UAE WPS & SIF File Compliance
What is the Wage Protection System?
The Wage Protection System (WPS) is an electronic salary transfer system introduced by the UAE Central Bank and MOHRE. It requires all private sector employers to pay employee wages through authorized banks, exchange houses, or financial institutions. The system ensures timely and full payment of agreed-upon wages, protecting both employers and employees.
SIF File Format Explained
The Salary Information File (SIF) is a pipe-delimited text file that employers must generate and submit to their bank for WPS processing. Each SIF file contains an Employer Data Record (EDR) header with establishment details, followed by Employee Data Records containing IBAN, salary components, and payment amounts. The file must match the employee count registered with MOHRE.
Common Compliance Pitfalls
The most frequent WPS violations include: paying salaries in cash instead of through authorized channels, filing SIF with incorrect IBANs leading to return transactions, delays beyond the 15-day grace period, and mismatches between SIF employee count and MOHRE records. Each violation can trigger establishment downgrades and work permit suspensions.
WPS for Free Zone Establishments
While mainland establishments fall directly under MOHRE's WPS mandate, most UAE free zones (JAFZA, DAFZA, DMCC, etc.) have adopted similar wage protection requirements. DIFC and ADGM have their own regulatory frameworks but still require transparent salary payment mechanisms. Employers should verify specific WPS requirements with their free zone authority.
WPS Filing Process with Kiework
Payroll Finalization
Run monthly payroll with all salary components, overtime, deductions, and variable pay calculated.
Kiework auto-calculates all components, applies leave deductions, and flags discrepancies before finalization.
SIF File Generation
Generate the pipe-delimited SIF file with EDR (Employer/Employee Data Record) in MOHRE-prescribed format.
One-click SIF generation with automatic IBAN validation, EDR formatting, and bank routing code mapping.
Bank Submission
Upload the SIF file to your authorized bank or exchange house for salary disbursement.
Direct integration with major UAE banks (ENBD, ADCB, Mashreq) for automated SIF submission.
Confirmation & Reconciliation
Process the bank return file, reconcile payments, and handle any rejected transactions.
Automated return file parsing, rejection alerts, and MOHRE compliance status tracking.
WPS FAQ
Related Tools & Resources
WPS Processing: Manual vs Kiework
Average metrics for a 300-employee organization
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Automate WPS Compliance
Stop managing Wage Protection System (WPS) manually. Kiework automates calculations, filing deadlines, and compliance validation — so you never miss a deadline.