UAE expands Wage Protection System with seven new financial institutions

Dubai: The United Arab Emirates has broadened its Wage Protection System (WPS) by incorporating seven additional financial institutions, providing employers enhanced flexibility in disbursing employees' salaries while streamlining registration and wage transfer processes. The Ministry of Human Resources and Emiratisation (MoHRE) announced the expansion as part of ongoing initiatives to boost the efficiency and reliability of wage payments, thereby safeguarding the rights of both employers and employees.

Under the upgraded system, employers will enjoy simplified procedures that eliminate the requirement for in-person visits, documentation, and a 90% reduction in the amount of data needed. MoHRE highlighted that the inclusion of seven financial institutions would expand the range of payment options for employers, making salary transfers more convenient and adaptable.

The move aims to further simplify the registration and wage transfer process by minimizing administrative burdens and reducing the number of steps involved. MoHRE emphasized that the expansion would bolster the efficiency and dependability of wage payments, promote stable employment relationships, and protect the rights of all parties involved.

The UAE has also outlined measures against employers who fail to pay salaries on time, with worker protection schemes disbursing over Dh832 million. Furthermore, the UAE mandates worker insurance for all newly hired employees.