Non-Compliant
Total Employees
3
Compliant
2
Non-Compliant
1
Compliance Rate: 66.7%
Employee 3
Not paid on time
AEDÂ 3,500
What is WPS?
WPS (Wages Protection System) is an electronic salary transfer system mandated by MOHRE (Ministry of Human Resources and Emiratisation). It ensures employers pay wages through approved financial institutions, providing transparency and protecting employee rights.
Is WPS mandatory?
Yes, WPS is mandatory for all private sector employers in the UAE. All wages must be paid through banks, exchange houses, or approved financial institutions. Cash payments are not compliant with WPS requirements.
What are the penalties for non-compliance?
Non-compliance can result in suspension of new work permits, company classification downgrade, administrative fines of AED 250-1,000 per employee, and potential legal action. Repeated violations may lead to business license suspension or revocation.
Note: This is a self-assessment tool. Official WPS compliance is determined by MOHRE based on actual payment records from financial institutions.
How the Wage Protection System works and what employers must do to stay compliant
What is the WPS?
The WPS (Wage Protection System) is an electronic system run by MOHRE (Ministry of Human Resources and Emiratisation) that monitors salary payments in the UAE. It ensures that employers pay workers on time and in full. All private-sector employers must transfer salaries through the WPS using approved banks, exchange houses, or financial institutions.
How does the WPS work?
Employers upload a Salary Information File (SIF) to their bank each month. This file contains each employee's name, labour card number, bank account, and salary amount. The bank then transfers the salaries and reports the payment data to MOHRE. If the data does not match what is in the employment contract, the system flags a violation.
When must salaries be paid?
Employers must pay salaries within 15 days of the end of the pay period (usually the end of the month). For example, September wages must be paid by 15 October at the latest. If 16 days pass without payment, MOHRE receives an automatic alert. After 30 days without payment, the company can face a work permit ban.
What happens if an employer does not comply?
Non-compliant employers face serious penalties including suspension of new work permits, fines of up to AED 50,000 per violation, and referral to the public prosecution for repeated offences. The company may be added to the MOHRE blacklist, which prevents it from hiring new employees or renewing existing visas.
Are all employees covered by the WPS?
The WPS covers all employees registered under MOHRE, including full-time, part-time, and temporary workers. Domestic workers (maids, drivers, nannies) are now also covered under a separate system. Free zone employees may have different requirements depending on the free zone authority, though many now use similar systems.
Can I pay employees in cash?
No. All salaries must be paid through approved WPS channels, which means bank transfers or payments through approved exchange houses. Cash payments are not allowed and will result in WPS violations. Each employee must have a bank account or prepaid salary card linked to the WPS system.
What records must employers keep for WPS?
Keep all SIF files, bank transfer confirmations, payslips, and employment contracts for at least 2 years. MOHRE can audit your records at any time. You should also keep copies of any salary changes, overtime payments, and deductions. Using payroll software that integrates with WPS can save time and reduce errors.
Does the WPS cover allowances and overtime?
The WPS tracks the total salary paid to each employee. The amount must match or exceed the salary stated in the MOHRE labour contract. Allowances (housing, transport, etc.) and overtime pay are included in the total. If you pay less than the contract amount, even by a small margin, it will trigger a WPS violation.
FTA-Aligned: Based on 2025 FTA rates and regulations. For personal advice, speak to a qualified tax consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms
Related Calculators
Salary Calculator
Calculate your take-home pay after tax, National Insurance, and pension deductions.
Employer Cost Calculator
See the true cost of employing someone including NI, pension, and benefits.
Payroll Calculator
Run batch payroll estimates for your team — PAYE, NI, pension auto-enrolment, and net pay in one go.