• The update was launched in collaboration with the Central Bank of the UAE, Al Etihad Payments, and leading financial institutions.
• The updated system enables employers to manage salary payments using a set of advanced digital platforms.

The Ministry of Human Resources and Emiratisation (MoHRE) has launched an upgraded version of the Wage Protection System WPS, in collaboration with the Central Bank of the UAE and Al Etihad Payments - the national payments service provider owned by the Central Bank - along with a number of MoHRE-accredited financial institutions through their digital platforms.

The update was launched under the Ministry's partnership with e& Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Community Bank. It forms part of the MoHRE's ongoing efforts to protect rights and enhance ease of doing business by leveraging smart technology, strengthening transparency and competitiveness in the labour market, driving digital transformation, and advancing the UAE's Zero Government Bureaucracy Programme.

The Wage Protection System covers more than 99% of private-sector workers, whose wages are transferred by the establishments employing them through the system, with total monthly transfers exceeding AED 35 billion.

In a press statement, the Ministry explained that the updated version of the WPS enables employers to manage salary payments easily and quickly with real-time, direct data integration between MoHRE's systems and financial institutions via the Central Bank. The process is implemented through these institutions' digital platforms, allowing customers to benefit from smart digital solutions, innovative applications, and proactive, best-in-class services.

MoHRE noted that the new version helps accelerate registration and verification procedures and strengthens communication between companies and relevant entities, raising performance efficiency, enhancing data integration, and establishing a secure and reliable digital environment.

The update marks a notable leap in wage management with its direct electronic integration, the Ministry explained, revealing that the enhanced system enables employers to complete all procedures digitally by reading data from MoHRE systems, accurately tracking salary transfer movements, and ensuring workers receive their wages on time, in line with the highest standards of transparency and protection, which, in turn, supports a sustainable work environment and reinforces confidence in the national economy.

The upgraded version also contributes to labour market stability by relying on supervisory bodies to strengthen governance within the WPS, while ensuring employers comply with the provisions of the Federal Decree-Law regarding the Regulation of Employment Relationships and relevant regulatory decisions. It further improves labour market efficiency and agility using integrated digital financial systems.

Moreover, the system provides an accurate database to support planning and strategic decision-making, and protects the rights of all parties through a smart, automated oversight framework. It also enhances integration between government, banking, and financial institutions to ensure transaction governance, reduce labour disputes arising from delayed or unpaid wages, and boost transparency and competitiveness, in line with the targets of the "We the UAE 2031" vision.

The updated WPS reflects the UAE's commitment to strengthening transparency and providing an attractive, fair work environment that ensures balance between workers and employers. It represents comprehensive digital transformation aligned with international best practice in labour administration and financial governance by expanding the pool of participating financial institutions, increasing processing efficiency for transfers, and integrating with financial institutions' digital platforms to enable establishments to manage their financial operations easily and effectively.

UAE labour market legislation requires private-sector establishments to pay workers' wages monthly, in the amount and at the time agreed in the employment contract, through the Wage Protection System, which is an innovative electronic system that facilitates wage transfers via approved banks, financial institutions, and exchange houses.