Who is exempt from WPS?

Only a few categories like fishing boats and domestic workers are exempt, though the scope is constantly expanding.

A Salary Information File is a specific CSV format required by banks to process WPS payments.

What is the deadline for salary payment under WPS?

Salaries must be paid within 15 days of the due date to avoid fines.

What are the fines for late WPS payments?

Fines can range from AED 1,000 per employee to total work permit blocks for the company.

Is there a minimum salary requirement for WPS?

While WPS tracks all salaries, it ensures that at least 90% of the registered salary is paid to the employee.

Can I pay an employee in cash and still be compliant?

No, salaries must be processed through the electronic WPS system to be legally recognized.

What should I do if a WPS SIF file is rejected?

Review the rejection code, fix the IBAN or formatting error, and re-upload the file immediately.

Is WPS mandatory for Freezone companies?

Most major Freezones like DMCC and JAFZA have integrated their own WPS-like systems or use the national system.

How do I register a new employee for WPS?

You need their Emirates ID and a valid bank account or payroll card IBAN.

What if an employee doesn't have a bank account?

Employers can provide 'Payroll Cards' through exchange houses that are WPS-compliant.

Payroll Compliance

WPS (Wages Protection System) - UAE

The Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers' wages via banks, bureau de change, and financial institutions approved and authorized by the Central Bank of the UAE. It is essential for HR in UAE.

Key Takeaways

Mandatory for all companies registered with MOHRE.
Ensures workers are paid on time and in full.
Requires SIF (Salary Information File) generation.
Failure to comply leads to blocks on work permits and fines.

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Ameena Abdurahiman

Subject Matter Expert (HR & Compliance)

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