Salary Protection System (SPS) in the UAE Explained

The Salary Protection System (SPS), commonly referred to as Wage Protection System (WPS), is a crucial initiative implemented by the UAE Ministry of Human Resources and Emiratisation (MOHRE). It is designed to ensure the timely and full payment of salaries to employees across the private sector in a secure, transparent, and efficient manner.

This article offers a complete breakdown of what SPS/WPS is, how it works, and how both employees and employers in the UAE are impacted by it.

What is the Salary Protection System (SPS/WPS)?

The Salary Protection System is an electronic salary transfer system developed by the Central Bank of the UAE in partnership with MOHRE. The system allows companies to pay employee wages via banks, exchange houses, and approved financial institutions regulated by the Central Bank.

Objectives of SPS:

• Protect workers’ rights by ensuring timely salary payments

• Monitor and regulate salary disbursement across private sector companies

• Reduce salary-related disputes between employees and employers

• Support UAE’s commitment to labor transparency and human rights

Who is Covered by the SPS in the UAE?

SPS applies to:

• All employees working under labour contracts in the private sector

• UAE Nationals and expatriates working in registered companies

• Companies registered with MOHRE (excluding some free zones unless opted in)

Free zone companies and domestic workers are generally not automatically included in WPS unless they voluntarily opt into the system.

How Does the SPS Work?

Here’s how the process typically works for companies under the WPS framework:

1. Employer signs up with a WPS-compliant bank or exchange house.

2. Employer prepares a Salary Information File (SIF) with employee salary details (as per contract).

3. File is uploaded to the bank or exchange, which validates and sends it to the Central Bank.

4. Once approved, salaries are transferred directly to employees’ bank accounts or prepaid salary cards.

The entire process is digitally tracked and regulated, ensuring salaries are transferred in full and on time.

Benefits of SPS for Employees

• Guaranteed Timely Payment: Salaries are disbursed monthly through an official channel.

• Transparency: All salary records are stored in the system.

• Ease of Access: Employees receive salaries through their bank or prepaid cards.

• Protection Against Delay or Fraud: Authorities can track employers who fail to pay on time.

• Legal Support: Employees can report non-payment and get support from MOHRE.

Benefits of SPS for Employers

• Compliance with UAE Labor Law

• Improved Reputation and reduced legal risks

• Automated Payroll Management

• Ability to attract better talent through transparent HR policies

• Avoidance of Penalties associated with delayed or missed salary payments

Penalties for Non-Compliance

Failure to comply with the Salary Protection System can lead to serious consequences for companies in the UAE. These include:

• Fines of up to AED 50,000 depending on the number of affected employees

• Suspension of New Work Permits

• Blacklisting of the company

• Legal Action by employees or MOHRE

• Possible downgrading of company classification

Timeline for Penalty Triggers:

• Within 10 days of due date: Company must pay salaries.

• After 10 days: Warnings may be issued.

• After 30 days: Suspension of new work permits.

• After 60 days: MOHRE may refer to public prosecution.

How Employees Can Check Their WPS Status

Employees can:

• Ask their HR department for the WPS Salary Information File or receipt.

• Download the MOHRE mobile app to check their labor contract and salary records.

• Visit TASHEEL service centers for inquiries.

• Contact MOHRE helpline at 80060 for complaints or clarifications.

Common SPS-Related Issues

1. Salary Not Received on Time

• Check with your employer first.

• If unresolved, file a complaint via the MOHRE app or TASHEEL.

2. Salary Received is Less Than Contracted

• Employer must provide a legal justification (e.g., unpaid leave).

• You may raise a case through MOHRE if deductions are unjustified.

3. No WPS Registration by Employer

• This is illegal. Report to MOHRE or lodge a complaint for protection.

What is a WPS Salary Card?

Many employers, especially for laborers or workers without bank accounts, issue salary cards that are linked to a WPS-compliant financial institution. These cards work like debit cards and can be used to:

• Withdraw salary from ATMs

• Pay bills or make purchases

• Receive SMS alerts and salary slips

Popular WPS card providers include Lulu Exchange, Al Ansari Exchange, Al Fardan Exchange, and more.

Recent Developments and Updates (As of 2025)

• Digital salary slip integration via mobile banking apps is being introduced for easier employee tracking.

• Some free zones, like Dubai Multi Commodities Centre (DMCC) and JAFZA, are adopting WPS for better compliance.

• MOHRE is working to integrate AI-driven compliance checks on delayed salary transfers.

Final Thoughts

The Salary Protection System is a game-changer for both workers and employers in the UAE. It promotes fairness, transparency, and accountability in the labor market—aligning with the UAE’s vision for a just and digitally empowered economy.