WPS Salary Statement: A Guide for UAE Employees & Employers

The United Arab Emirates (UAE) has established a reputation as an international hub for business and a magnet for expatriate talent. With a thriving job market and countless opportunities, both employers and employees are drawn to the UAE. However, while it's essential to focus on landing that dream job, it's equally crucial to understand the nitty-gritty of the UAE's labor and payroll systems. One integral part of this system is the Wage Protection System (WPS) and its associated document, the WPS Salary Statement.

In this article, you will discover all you need to know about WPS UAE. Learn what the WPS is, its goals, and the penalties companies can face from it. 

1. What is the Wage Protection System (WPS)?

2. Why did the UAE authorities create the WPS?

3. How can you perform the WPS Registration Procedure as an employee in the UAE?

4. What should you do to withdraw your salary from WPS UAE?

5. Which WPS penalties can your company face?

6. Frequently Asked Questions

1. What is the Wage Protection System (WPS) in UAE?

The UAE is a nation where performing a job search can show you its terrific economy. It is one of the top reasons why expatriates from more than 200 countries now live and work in the country. Nevertheless, it is also an attractive destination because of how they protect wages.

In the UAE, the WPS is a government-led initiative designed to ensure that workers receive their salaries on time. The cornerstone of this system is the WPS Salary Statement. Essentially, this document details the worker's salary, including basic pay, allowances, bonuses, and deductions. It also outlines information about the employer, employee, and the bank through which the salary is transferred. In essence, it's a comprehensive record of an employee's earnings and deductions.

In this sense, the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MOHRE) launched the Wage Protection System (WPS) in 2019. It is an electronic salary transfer system that allows companies to use financial institutions to pay their employee’s wages.

Just as the Dubai Labour Court gives legal assistance, the MOHRE offers a reliable database of salary files. Companies can use such files to wage distribution to their employees. It is the reason they submit them to their respective banks, allowing MOHRE to ensure every employee gets his income.

In short, the WPS UAE allows companies and authorities to guarantee the payment of all employees’ dues. But, it is not the only reason the WPS exists. The next topic will show you what its goals and objectives are in detail.

2. Why did the UAE authorities create the WPS?

When you built your CV, you used the perfect resume format to catch the attention of companies and recruiters. Nonetheless, you also did this to show your professional skills to colleagues that could need your assistance. In other words, it was an action with several goals.

Similarly, the UAE authorities created the WPS to ensure companies will make their wage payments correctly. But, it also exists to deliver a wide variety of services to the employees in the private sector. Some of such services are the following:

• Provide a payment system that is both transparent and easy to use.

• Protect employees proactively while reducing labor disputes related to salaries.

• Safeguard the employers’ interests using the WPS salary transfer system to save time and effort.

• Provide the Ministry of Labour with a reliable database of wages in the private sector that is constantly updated.

In summary, the main goals of the WPS UAE relate to one objective: Protecting companies and employees regarding salaries. Hence, you will find it helpful to discover how you can register to get your WPS salary as an employee. You will learn how to do so in the following topic.

Features and Benefits of WPS for employers & Employees

The Wage Protection System (WPS) in the United Arab Emirates (UAE) offers several features and benefits for both employers and employees. This system is designed to ensure fair and timely salary payments, promoting transparency and compliance with labor laws. Here are the key features and benefits of the WPS for both parties:

Features of WPS for Employers:

• Compliance with Labor Laws: The WPS mandates that employers adhere to labor laws regarding salary payments, ensuring they meet their legal obligations. This reduces the risk of labor disputes and penalties.

• Streamlined Salary Payments: Employers can make salary transfers directly through the WPS, streamlining the payment process. This saves time and effort, as there's no need for manual cash payments or check issuance.

• Automated Salary Statements: The WPS generates automated salary statements for each employee, detailing their earnings, allowances, and deductions. This feature simplifies record-keeping and transparency in financial transactions.

• Efficient Dispute Resolution: In case of salary disputes, having a transparent and automated record of salary payments helps employers resolve issues efficiently. The WPS Salary Statement serves as a critical piece of evidence during dispute resolution.

• Penalty Avoidance: Employers who comply with the WPS guidelines can avoid penalties, fines, and legal consequences. Ensuring timely and accurate salary payments helps maintain a positive reputation.

• Improved Employee Relations: Timely salary payments enhance the relationship between employers and employees. When workers receive their salaries on time, it promotes job satisfaction and trust in the organization.

Benefits of WPS for Employers:

• Legal Compliance: Employers benefit from the legal protection offered by the WPS. By adhering to labor laws, they reduce the risk of disputes, fines, and legal issues.

• Efficiency: The WPS streamlines salary payments and record-keeping. This results in more efficient and accurate financial transactions.

• Reduced Administrative Burden: Manual salary disbursement and record-keeping can be time-consuming and error-prone. The WPS reduces the administrative burden, allowing employers to focus on other aspects of their business.

• Improved Reputation: Employers who consistently pay salaries on time and adhere to labor laws develop a positive reputation in the job market. This can attract top talent and enhance their standing in the business community.

Features of WPS for Employees:

• Timely Salary Payments: Employees benefit from receiving their salaries on time, ensuring financial stability and peace of mind.

• Transparent Salary Statements: The WPS provides detailed salary statements that offer employees insights into the breakdown of their pay, including allowances and deductions.

• Legal Protection: The system enforces labor laws that protect employees' rights, ensuring they receive fair compensation and treatment.

• Efficient Dispute Resolution: In the event of salary disputes, the WPS Salary Statement serves as crucial evidence, facilitating a quicker resolution process.

Benefits of WPS for Employees:

• Financial Security: Timely salary payments through the WPS provide employees with financial security, enabling them to meet their financial obligations and plan for the future.

• Peace of Mind: Knowing that their employer complies with labor laws and follows the WPS guidelines gives employees peace of mind, reducing stress related to salary delays or disputes.

• Improved Employee-Employer Relations: The system promotes trust between employees and employers. A positive work environment is conducive to job satisfaction and career growth.

• Legal Recourse: In the rare event of salary-related disputes, employees have a clear and legal recourse through the WPS, ensuring their rights are protected.

Overall, the Wage Protection System in the UAE is a win-win for both employers and employees. It fosters a fair and transparent work environment and contributes to the overall prosperity and well-being of the labor force and businesses in the country.

Eligibility and Documents for Employers:

• Employer Eligibility:

  • Any business or organization operating in the UAE, regardless of its size or sector, is eligible to enroll in the WPS.

  • Employers must have valid business licenses and operate in compliance with UAE labor laws.

• Business Documents:

  • A valid commercial license or business registration documents are required to establish the legitimacy of the business.

  • Employers must provide relevant trade licenses issued by the UAE's Ministry of Economy or a respective free zone authority.

• Bank Account:

  • Employers must maintain a UAE bank account to facilitate salary payments through the WPS.

  • Bank account details, including the account number and IBAN (International Bank Account Number), should be provided.

• Valid Employment Contracts:

  • Employers must have valid and legal employment contracts with their employees.

  • Ensure that the contracts comply with UAE labor laws, outlining salary terms, job responsibilities, and other employment details.

Eligibility and Documents for Employees:

• Employee Eligibility:

  • Any individual working in the UAE, whether a UAE national or expatriate, is eligible to receive their salary through the WPS.

  • All employees, including full-time, part-time, and temporary workers, are covered by the system.

• Personal Identification Documents:

  • Employees must provide their personal identification documents, which typically include a valid passport, UAE identity card (Emirates ID), or residence visa.

  • These documents help verify the identity of the employee and their eligibility for salary payments through the WPS.

• Bank Account Details:

  • Employees should have an active UAE bank account where their salaries can be deposited. Employers may require bank account information, including the account number and IBAN.

• Employment Contract:

  • Employees should have a legally binding employment contract with their employer.

  • The contract must comply with UAE labor laws and outline the terms and conditions of employment, including salary details.

Both employers and employees are responsible for ensuring that the required documents are accurate and up-to-date. Employers must establish and maintain salary payment mechanisms through the WPS, while employees must provide the necessary identification and banking details to receive their salaries. Compliance with the WPS is essential to maintain a fair and transparent salary payment system in the UAE.

Payment of salaries (wages) via WPS in UAE

The payment of salaries or wages in the United Arab Emirates (UAE) through the Wage Protection System (WPS) is a vital and legally mandated process. The WPS was established to ensure that employees receive their salaries in a timely and transparent manner while also assisting employers in fulfilling their salary payment obligations. Here's how the payment of salaries via WPS works in the UAE:

1. WPS Registration:

• Employers in the UAE are required to register with the WPS and provide the relevant details of their employees.

• Employers must also furnish information about their own company, including their trade license and bank account details.

2. Employee Registration:

• Employees must have valid UAE bank accounts where their salaries will be deposited through the WPS.

• Employees should also provide their personal identification documents, such as passports, Emirates ID, or residence visas, to verify their identity.

3. Monthly Salary Transfer:

• Employers are responsible for transferring their employees' salaries to the registered bank accounts each month.

• These transfers must be made through the WPS to ensure compliance with UAE labor laws.

4. Salary Protection:

• Once the salaries are transferred, the WPS safeguards employees' salaries in their bank accounts.

• This protection is essential to ensure that employees receive their full salaries on time and without any deductions.

5. Monitoring and Enforcement:

• UAE authorities actively monitor the implementation of the WPS to ensure employers' compliance.

• Failure to pay salaries through the WPS can result in penalties and legal consequences for employers.

6. Salary Slip Issuance:

• Employers are required to provide their employees with detailed salary slips, indicating the salary amount, deductions (if any), and other relevant information.

• Employees can use these salary slips to keep track of their earnings and deductions.

7. Employee Access to Funds:

• Employees can access their salaries as soon as they are deposited in their bank accounts through the WPS.

• This prompt access to funds is crucial for meeting financial obligations and expenses.

8. Salary Disputes:

• If employees have salary disputes with their employers, they can file complaints with the UAE Ministry of Human Resources and Emiratisation (MoHRE).

• The WPS provides a transparent record of salary payments, making it easier to resolve disputes.

9. End-of-Service Benefits:

• The WPS also helps calculate end-of-service benefits accurately by maintaining a transparent record of salary payments.

Compliance with the WPS is mandatory for all employers and employees in the UAE. The system ensures fair and timely salary payments, protects employees' rights, and helps maintain a robust and stable labor market. Failure to adhere to WPS regulations can result in legal consequences and penalties for employers, so it's essential for all parties to fulfill their obligations under the system.

3. How can you perform the WPS Registration Procedure as an employee in the UAE?

You could think that beginning to earn the WPS salary involves a challenging procedure. But, you will discover it is as easy as writing an employment contract non-renewal letter to your employer. Let us show you the steps you need to follow to achieve this.

Essentially, it is the responsibility of the employer to register in WPS Dubai. All they have to do is enter the MOHRE’s official website to register their accounts. It implies entering their companies’ details provided by the Ministry, which are the following:

• Bank account information

• The company’s list of employees with information regarding which bank or agent they use

• The bank or agent of each specific employee when it implies

• The date at which they must pay their WPS salary.

Remember, the MOHRE will demand that you cannot pay your monthly salary on a date that is further than a month away. Moreover, you will have to keep your employees’ list updated. It is just like your CV when you perform a new job search.

4. What should you do to withdraw your salary from WPS UAE?

Once your employer registers his company in WPS UAE, your salary payments are adequately protected. Nevertheless, making purchases with your WPS salary involves specific procedures. Let us discuss how you can perform them during your mandatory breaks according to the UAE Labour Law.

First, you can withdraw your salary by using a WPS payroll card. Your employer can access this money exchange system to comply with his WPS salary payments. Above all, it is an excellent option for employees without a relevant bank account.

On the other hand, you also could use another system for accessing your WPS salary if you have a bank account. For instance, you can withdraw funds from such an account using one of several ATMs in the UAE. This option is quick enough to avoid affecting your punctuality.

In short, getting your WPS salary means more than just earning your income safely. It also means that you will have efficient and safe ways to spend it. As a result, you will find out the emirates are a terrific place to earn and enjoy your salary in numerous ways.

5. Which WPS penalties can your company face?

Unequivocally, every company in the UAE can enjoy the advantages of using the WPS salary transfer format. But, there are cases where some employers inexplicably choose not to register in the system. For such cases, the UAE authorities can impose severe penalties.

One way you can achieve your promotion is by explaining to your employer what penalties he could face. We will allow you that opportunity by showing you those penalties in detail. Here, you will learn that they can vary depending on the number of employees of the company.

Nonetheless, you must also explain to him that the UAE is a country with strict laws he shall follow. It will be an appropriate way to keep your company away from legal issues related to an unlimited contract’s termination. Assuredly, legal problems can be both uncomfortable and expensive.

Let us give you a glance at the WPS penalties your company can face according to its number of employees:

5.1 Penalties for enterprises employing over 100 employees

Imagine you work for a large organization that hired you because you stood out in your work interview. If this organization begins withholding your WPS salary, it could face tremendously hurting penalties. Here, you will discover some of them in detail.

In essence, an enterprise with more than 100 employees that fail to pay salaries in a period of more than one month past the due date can face the following penalties:

• Punitive measures established by judicial authorities

• The employer will not have permission to register other companies in WPS UAE.

• A company’s downgrading to the third category

• UAE authorities will allow employees to apply for new job offers in the labor market.

Moreover, the company also can face financial WPS penalties if its withholding period surpasses 60 days. They will receive an AED5,000 fine per employee to a maximum of AED50,000 for multiple employees. Consequently, it could mean a financial setback for the organization.

In summary, losing employees in your company because you did not perform their WPS salary transfer will not be your only problem. We strongly recommend complying with all the MOHRE guidelines.

5.2 Penalties for companies with a workforce of fewer than 100 employees

Logically, you could think fraudulent employers would skip these fines by reducing their workforce. But, you will find here that employers with a small team can also face WPS penalties. So, professionally reject their job offer if you receive one from them.

In essence, companies with fewer than 100 employees can face the following penalties if they fail to pay the WPS salary within 60 days from the due date:

• The loss of the license to issue work permits

• Fines issued by the Ministry of Human Resources and Emiratisation

• Further procedures according to the Court sentences

Furthermore, companies could also face the same penalties as the ones with more than 100 employees. Indeed, MOHRE will apply them if they fail to perform the WPS salary transfer twice a year. Ergo, it could mean big trouble for small companies with limited resources.

In short, committing WPS faults can mean dark days for bad companies in the UAE, so avoid working in such companies at all costs. You can even follow some tips to build a CV that will attract good companies’ attention.

Why Is WPS Statement Important?

• Transparency: The WPS Salary Statement promotes transparency in salary payments, giving employees a clear breakdown of their earnings and deductions. This transparency helps build trust between employers and employees.

• Compliance: UAE labor law mandates the use of the WPS, ensuring that both employees and employers adhere to the rules and regulations regarding salary payments. Failure to comply can lead to penalties for employers.

• Dispute Resolution: In case of salary disputes, the WPS Salary Statement serves as a crucial piece of evidence. It helps authorities quickly and accurately resolve conflicts.

Key Components of the WPS Salary Statement

• Employee Information: This section includes the employee's name, passport or ID number, and job title.

• Employer Information: It lists the company's name and contact details, as well as its trade license number.

• Bank Details: The document specifies the bank where the employee's salary is deposited.

• Earnings: This part of the statement details the employee's gross salary, including basic pay, allowances, and bonuses.

• Deductions: It outlines all the deductions made from the employee's salary, such as taxes, insurance contributions, and any other withholdings.

• Net Salary: This is the amount the employee receives after all deductions are subtracted from the gross salary.

How to Access Your WPS Salary Statement

Employees usually receive their WPS Salary Statements from their employers. Employers generate and distribute these statements as part of their payroll process. The document can be provided in both printed and electronic formats.

How Does the WPS Work?

• Employee Registration: Employers must register their employees with the WPS, providing details such as their names, passport or ID numbers, job titles, and salary information.

• Salary Transfer: On payday, employers are required to transfer the employees' salaries directly to their bank accounts through the WPS.

• WPS Salary Statement: Simultaneously, the system generates WPS Salary Statements for each employee, documenting their earnings, deductions, and other relevant data.

• Penalty Enforcement: Employers who do not adhere to the WPS guidelines may face penalties, including fines and even imprisonment.

WPS and Expatriate Workers

The WPS is of particular importance for the large expatriate workforce in the UAE. Many expatriates send a significant portion of their earnings back to their home countries to support their families. Ensuring timely salary transfers and providing transparent salary statements through the WPS is vital for them.

Categories excluded from WPS compliance

While the Wage Protection System (WPS) is a crucial mechanism for ensuring timely salary payments and protecting the rights of employees in the United Arab Emirates (UAE), there are specific categories of workers and companies that are exempt from WPS compliance. These exclusions are generally made to accommodate specific situations or industries where traditional salary payment methods are more suitable. The categories excluded from WPS compliance may include:

• Government Employees: Many government employees in the UAE, such as those in the military or police force, may not fall under WPS compliance. Government institutions often have their own salary payment systems.

• Domestic Workers: Housemaids, nannies, and other domestic workers are typically not covered by the WPS. Their salaries are paid directly by the employer and are not subject to the WPS process.

• Agricultural Workers: Those engaged in agricultural work, such as farm laborers, may not be part of the WPS system. Their payment arrangements are often managed differently.

• Informal Labor: Some informal or part-time laborers who do not have formal employment contracts may not be included in WPS compliance.

• Companies in Designated Free Zones: Companies operating within specific free zones may have different rules and regulations governing salary payments. They may not be required to use the WPS system.

• Workers with Irregular Contracts: Some employees who work on irregular or seasonal contracts may not fall under WPS compliance. These situations are often assessed on a case-by-case basis.

• Special Economic Zones: Certain areas or zones within the UAE may have their own regulations regarding salary payments, and companies operating in these zones may be exempt from WPS compliance.

It's important to note that the exclusions from WPS compliance can vary and may be subject to change based on government regulations and labor laws. Employers and employees should always check with the relevant authorities, such as the UAE Ministry of Human Resources and Emiratisation (MoHRE), to determine whether they fall under WPS regulations. While many employees and companies are required to adhere to WPS guidelines, these exclusions ensure that the system is flexible enough to accommodate various work arrangements and industries across the UAE.

6.3 Which top sites can I visit to search for job offers in the UAE?

Technology and globalization allow job seekers to find employment from anywhere in the world by using job sites. However, not all are good at offering attractive job offers and explaining the WPS UAE. Only a top site will show you where and how you can find a job successfully.

Now, you are probably wondering which top site you must visit to enter the UAE’s labor market. We can tell you that such a site is The Talent Point with absolute certainty. Our job offers and articles will show you how to get your Wage Protection System (WPS) salary card.

6. Frequently asked questions (FAQs) regarding the Wage Protection System (WPS) and salary statements in the United Arab Emirates (UAE):

After seeing how the WPS UAE works, you most probably want to work in the UAE. By all odds, it is a process that does not have a linear path or a specific procedure. But, we want you to succeed in your goal and start enjoying your WPS salary.

Luckily, we prepared detailed answers to some frequently asked questions job seekers often do. Reviewing them will allow you to find a job in the already booming private sector. As a result, you could receive your own WPS payroll card.

However, feel free to search for answers to other additional questions you may have about this topic. You also can use this knowledge to search for a new job in other places like Saudi Arabia. After all, we live in a globalized job market nowadays.

Let us show you the answers to the following frequently asked questions about the job market in the UAE:

1. What is the Wage Protection System (WPS) in the UAE?

• The WPS is a system introduced by the UAE government to ensure that employees receive their salaries on time and as per the terms of their employment contracts.

2. Who does the WPS apply to?

• The WPS applies to all private sector companies and their employees in the UAE.

3. What are the benefits of the WPS for employees?

• Employees can be confident of receiving their salaries on time and as agreed upon in their contracts. The system safeguards their financial rights.

4. What are the benefits of the WPS for employers?

• Employers can efficiently and transparently pay their employees through the WPS. It also helps in maintaining good relations with employees and avoids penalties for delayed payments.

5. How does the WPS work?

• Employers deposit their employees' salaries into an approved financial institution, which then disburses the salaries to the employees. This process ensures transparency and timeliness.

6. What information is included in a WPS salary statement?

• A WPS salary statement typically includes details such as the employee's name, job title, basic salary, allowances, deductions, and the net amount to be disbursed.

7. Can employees access their salary statements online?

• Yes, many banks and financial institutions provide online access to salary statements. Employees can check their statements through the respective bank's online portal.

8. Is there a specific format for the WPS salary statement?

• Yes, the UAE government has defined a standard format for the WPS salary statement, which must be followed by employers and financial institutions.

9. How often should employees receive their salary statements?

• Employees should receive salary statements with each salary payment, which is typically on a monthly basis.

10. Can employees request copies of previous salary statements? 

- Yes, employees can request copies of their previous salary statements from their employers or the financial institution where their salaries are deposited.

11. What happens if an employer fails to pay salaries through the WPS or delays salary payments?

 - Employers who do not comply with the WPS regulations may face penalties, including fines and restrictions on hiring new employees.

12. Are there any exceptions or exemptions from the WPS? 

- Some categories of employees, such as government workers, domestic workers, and certain free zone companies, may be exempt from WPS compliance. The specific exemptions can vary.

It's essential for both employers and employees to understand the WPS requirements and how the system works to ensure the timely and accurate disbursement of salaries in accordance with UAE labor laws.

6.1 How can I get a job in the UAE?

The fast-growing economy of the UAE could make you think that getting a job there is difficult. Nevertheless, you will feel surprised knowing that it is not different from getting it in any other place. Just ensure to write the right things your CV needs.

On the other hand, many of your chances of getting a job in the UAE pass through visiting top job sites. Stick around to discover which one will allow you to receive your WPS salary faster.

6.2 What jobs are available in the UAE today?

As a land where several businesses are tremendously successful, the UAE offers a wide variety of jobs to potential candidates worldwide. Moreover, authorities also implemented a new classification system to create more job opportunities in the private sector. As a result, such a variety grows more every day.

Therefore, it will not matter if you want to work in the healthcare sector or the manufacturing business. Undoubtedly, the UAE is the place to go to boost your career. Systems like the WPS Dubai prove what the country can offer professionals worldwide.

Find a job in a company registered in WPS Dubai through our services.

It will only take a moment to sign in to thetalentpoint.com and review our job offers.

In Conclusion

The WPS Salary Statement plays a pivotal role in the UAE's labor landscape, promoting transparency, ensuring compliance with labor laws, and aiding in dispute resolution. Both employers and employees should familiarize themselves with this essential document, as it underpins the fair and efficient payment of salaries in the UAE.

Understanding the UAE's labor and payroll systems, including the WPS Salary Statement, empowers both employees and employers to navigate the job market with confidence, knowing their rights and responsibilities.

Whether you're already working in the UAE or planning to start your professional journey here, comprehending the nuances of the UAE's labor landscape is a valuable asset that will contribute to a successful and fulfilling career.

Disclaimer: This article provides general information and should not be considered as legal or financial advice. For specific details and concerns regarding your employment and salary, it's advisable to consult with a legal or financial professional.