The Wage Protection System (WPS) is a UAE government initiative requiring all private sector employers to pay employee salaries through approved financial channels — banks, exchange houses, or financial intermediaries — within stipulated deadlines. MOHRE monitors all payments to ensure workers are paid on time.
All private sector employers registered with MOHRE employing staff on UAE employment contracts. Most free zone companies align with WPS requirements though specific free zone rules may apply.
Salaries must be paid within the date in the employment contract — and always within 10 days of the due date at the latest. Non-compliance results in: immediate fines, a ban on new work permits, and placement on a "red list" preventing licence renewal.
All WPS salary payments must be recorded in the general ledger as payroll expenses. Under corporate tax rules, salary expenses are fully deductible — but only if supported by WPS records, bank statements, and employment contracts.
Finanshels manages payroll processing, WPS salary file preparation, and bank integration for timely employee payments. Our compliance services and bookkeeping services keep your payroll records audit-ready.
