The Wages Protection System (WPS) is a pioneering initiative by the UAE Central Bank and the Ministry of Human Resources and Emiratisation (MOHRE) to ensure timely and full payment of wages to employees in the private sector.
It’s more than just a digital payroll transfer system — WPS represents the UAE’s commitment to labor rights, financial transparency, and business accountability. Whether you’re an employer, worker, or payroll service provider, understanding WPS is essential for full compliance.
What is WPS?
The Wages Protection System (WPS) is an electronic salary transfer mechanism that enables companies in the private sector to pay employee wages through banks, exchange houses, or approved financial institutions. It creates a transparent database that tracks wage payments and ensures salaries are paid accurately and on time.
Key Objectives of WPS:
- Protect workers’ rights
- Increase transparency in wage payments
- Monitor salary compliance in the private sector
- Reduce salary disputes and complaints
The WPS system is mandatory for all companies registered with MOHRE across all sectors and industries in the UAE.
Who Are the Impacted Parties?
Workers
All employees working in the UAE’s private sector under a valid labor contract and holding a labour card are included in the WPS framework. Workers benefit from timely and complete payment of their agreed wages.
Employers
Any business owner registered with MOHRE and employing one or more workers must register for WPS and ensure compliance by processing salaries through the system.
Banks
Employers must maintain a UAE bank account used exclusively to transfer wages through the WPS network. This salary file is then forwarded to an authorized agent for disbursement to employees.
Agents
These include banks, bureaus de change, and other financial institutions authorized by the UAE Central Bank to offer WPS services. Employers send salary files to these agents for processing and disbursement.
Token Talent, a cloud-based HR and payroll solution, integrates directly with WPS-compatible banking systems to help businesses automate salary file generation, formatting, and secure submission.
WPS Eligibility Criteria
To join the WPS network, companies must meet the following criteria:
- Registration with MOHRE
The company must be registered with the Ministry of Human Resources and Emiratisation. - Active UAE Bank Account
The employer must maintain an account in a bank operating in the UAE. - WPS Service Contract
Employers need to enter a contract with an approved agent (bank or exchange) authorized by the UAE Central Bank. - Timely Salary Transfers
Employers must process wages according to the timelines set in Ministerial Resolution No. 788 of 2009, which requires salary disbursement within 10 calendar days from the due date.
WPS Fees & Charges
Understanding the cost structure is vital for proper budgeting:
| Service | Fee |
|---|---|
| Salary File Upload | AED 200 (per upload) |
| Per Employee Record | AED 0.50 (per entry) |
| Central Bank Charges | May vary per institution |
Example: Uploading a salary file for 50 employees = AED 200 + (50 x 0.50) = AED 225 total.
Agent Code Example
For businesses banking with Dubai Islamic Bank, the Agent ID required in the WPS file is:
➡️ 802420101
This 9-digit agent code is mandatory for WPS file processing.
Required Documents & Guidelines
To ensure full compliance with WPS, employers should maintain and submit:
- WPS Instructions & File Format Guide
- WPS Registration Form
- Debit Authority for Wage Processing
- Sample Salary File
- Guide for Business Online Portal (if applicable)
Token Talent offers pre-validated WPS salary file formats and helps employers avoid formatting errors or rejections from banks and agents.
How Token Talent Simplifies WPS Compliance
While the WPS system itself ensures wage protection, managing the technical file format, employee data, and compliance reports can be overwhelming — especially for small to mid-sized businesses.
That’s where Token Talent comes in.
Token Talent Features That Help With WPS:
- Auto-generate WPS-compliant salary files
- Validate bank details and agent IDs
- Track WPS submission statuses
- Automate salary disbursement workflows
- Comply with UAE labor laws & MOHRE timelines
Token Talent acts as your digital HR assistant, ensuring payroll, compliance, and reporting are always accurate and audit-ready.
Bonus: Token Talent supports multi-bank integration, letting you choose your preferred WPS agent.
Why Complying with WPS is Non-Negotiable
Failing to comply with WPS regulations can result in:
- Fines starting from AED 5,000 per worker
- Suspension of new work permits
- Downgrading of the company’s classification in MOHRE
- Legal action and blacklist by the Ministry
Final Thoughts
The Wages Protection System is a revolutionary step towards labor rights and business transparency in the UAE. Whether you’re a business owner, HR manager, or finance head, ensuring full compliance is essential not only for legal safety but also for employee trust.
By integrating Token Talent, your company can simplify the process, minimize compliance risks, and create a streamlined experience for both HR and finance teams.
