Tuesday, 02 January 2024 12:17 GMT

Faster, Safer Salary Payments To Employees As UAE Upgrades Wage Protection System


Date:

(MENAFN- Khaleej Times) The Ministry of Human Resources and Emiratisation (MoHRE) has announced an upgrade to the UAE's Wage Protection System (WPS), introducing a more integrated digital process designed to simplify employer registration, strengthen data security and speed up payroll processing.

Following its December 2025 upgrade, the Wage Protection System (WPS) has undergone significant transformations, going beyond ensuring compliance to focusing on building an all-inclusive experience that makes adherence to the system a seamless part of the customer journey.

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The system is underpinned by an integrated digital infrastructure centred on secure Application Programming Interfaces (APIs) to enable the real-time and secure exchange of data between various parties, enhance accuracy and reliability, and shorten wage payment processing time.

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Launched by the Ministry of Human Resources and Emiratisation (MoHRE) in collaboration with the Central Bank of the UAE (CBUAE) and Al Etihad Payments, the upgraded system marks a transformative shift in the employer journey.

Under the new model, employers no longer need to submit documents or visit financial institutions in person to register for the system. The process is now completed digitally through institutions directly linked to MoHRE's systems, allowing the service to be provided instantly.

Al Etihad Payments, the national payments entity owned by the CBUAE, develops and operates the enhanced central platform for the WPS, enabling the establishment of a direct and instant link between MoHRE's systems and participating financial institutions.

The platform is intended to reduce friction in payroll administration while improving the accuracy, traceability and security of salary-transfer data. For workers, the intended outcome is more reliable wage processing and stronger transparency around payments.

The upgraded version of the system is undergoing a gradual expansion in available services, driven by strategic partnerships with seven new establishments, namely First Abu Dhabi Bank (FAB), Emirates NBD, Dubai Islamic Bank (DIB), Mashreq Bank, Ajman Bank, Lari Exchange, and First Gulf Exchange Centre.

This brings the total number of partners to 17. The Wage Protection System covers more than 99 per cent of private-sector workers, reporting average monthly transfers of Dh37 billion, which reflects the system's reliability and role in enhancing stability and transparency in the labour market.

Dalal Alshehhi, MoHRE's Assistant Undersecretary for Labour Protection, said the upgraded WPS has evolved from a wage-compliance mechanism into a comprehensive digital financial ecosystem supporting the UAE's labour market.

The ministry said the initiative contributes to Zero Government Bureaucracy in its operations and supports the 'We the UAE 2031' vision, including wider financial inclusion and stronger digital financial governance.

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Khaleej Times

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