How to Register for the WPS in the UAE as an Employer
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How to Register for the WPS in the UAE as an Employer
Understanding the WPS registration process is key to smooth business operations in the UAE. This comprehensive guide will streamline your WPS registration process, showcasing the UAE's commitment to efficient business operations. Additonally, we will guide you more about recruitment process In UAE.
Cercli’s global HR system enables your business to meet its WPS obligations efficiently and effectively. This means you can complete the registration process quickly and focus on what matters, helping your business grow and your new employees settle in.
Understanding the WPS in the UAE
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The UAE’s Wage Protection System (WPS) is an electronic salary transfer mechanism established by the Ministry of Human Resources and Emiratisation (MoHRE) to guarantee that the UAE employees receive their salaries accurately and on time. It is a government-backed initiative promoting transparency and fairness in employer-employee financial relations across the private sector.
Purpose of the WPS
The WPS was introduced with several core objectives:
Transparency
By utilising the UAE's advanced financial infrastructure, the WPS ensures complete transparency in all salary transactions, reducing wage manipulation and discrepancies.
Supporting Workers' Rights
It secures workers' earnings by making late or unpaid salaries immediately visible to the authorities, ensuring timely intervention from authorities when needed.
Promoting Employer Accountability
The system discourages unlawful labour by holding employers responsible for compliance and timely salary disbursement.
Reduction of Wage Disputes
With digital proof of payment, the system prevents wage disputes related to non-payment or underpayment, strengthening trust in the employment system.
The WPS represents a significant step forward in strengthening employee rights in the UAE while encouraging ethical business practices. Compliance is not only a legal requirement for employers but a commitment to corporate integrity and social responsibility. Employees are reassured that their salaries are protected under a regulated and enforceable framework.
Who Needs to Register for WPS?
WPS registration is not required for every business or individual in the UAE. The system is specifically designed to cover most private sector employers and their workforce, but there are notable exemptions and eligibility criteria:
Mandatory Registration
- All private sector companies registered with the MoHRE must register for the WPS, regardless of industry or ownership.
- Companies operating within UAE free zones, such as the Jebel Ali Free Zone (JAFZA), are also required to comply with WPS regulations.
- Registration is compulsory for businesses employing five or more staff members.
Exemptions
- Small Companies: Businesses with fewer than five employees are generally exempt from WPS registration, though this exemption may be subject to specific conditions set by MoHRE and can change based on regulatory updates.
- Domestic Workers: Individuals employed as domestic help (e.g., housemaids, drivers, cooks) are not included in the WPS and are governed by separate labor regulations.
- Government and Semi-Government Entities: Public sector organizations and semi-government bodies have their own salary payment systems and are not part of the WPS framework.
- UAE Nationals: The WPS is primarily designed for expatriate employees; UAE citizens working in the private sector are not covered by the system.
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How To Register WPS in the UAE
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Employers should gather key employee and company information before starting the Wage Protection System registration process. This includes opening a corporate bank account with a WPS-approved bank. Next, the employer needs to create a list of employees, including their:
- Names
- Bank account details
- Salary information
- Date of salary disbursement
Facilitating Secure and Lawful Salary Payments
Each employee will also need a bank account with a WPS-participating bank to receive their salary. Once registered, the WPS helps companies streamline payroll and ensure compliance with UAE labour laws. Registering with the WPS makes salary payments more efficient for both employees and employers.
Step-By-Step Guide to WPS Registration
Once a company has gathered the necessary documentation and registered with the WPS, the salary disbursement process can proceed as follows:
1. Open a Bank Account with an Approved Institution
To start the WPS registration process, the business must open a corporate account with a financial institution licensed by the Central Bank of the UAE. The company must be linked with a recognised WPS agent in the UAE if it uses an international bank.
2. Sign a WPS Agreement with the Bank
The employer must enter a WPS agreement with the bank or exchange house. This agreement will enable the electronic transfer of salary data through secure, government-regulated channels.
3. Issue Payment Instructions
The employer prepares a Salary Information File (SIF) that contains:
- Employee salary amounts
- Salary month
- Employee bank account numbers
- Company’s bank details
This file is submitted to the bank or financial institution as a formal instruction to begin the salary payment process.
4. Bank Notifies the WPS System
Upon receiving the SIF, the bank transmits it to the WPS platform, which forwards the data to the Central Bank of the UAE.
5. Central Bank Forwards Details To MoHRE
The Central Bank reviews and validates the data, forwarding it to MoHRE for final cross-verification. This step ensures that all employee and employer details comply with UAE Labour Law.
6. Salary Disbursement Authorisation
Upon successful verification by MoHRE, an authorisation is issued to the employer’s bank or WPS agent, allowing the actual disbursement of salaries to employee accounts.
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Transform your HR operations with Cercli, a platform built specifically for MENA businesses that unifies workforce management needs in one powerful system. Manage your entire team, whether local or distributed across 160+ countries, with our comprehensive solution that handles:
- Multi-currency payroll
- Leave management
- Onboarding
- Compliance documentation tailored to the unique requirements of the MENA region.
HR Complexity Solved
Eliminate the complexity of using multiple fragmented tools and enjoy the efficiency of a single source of truth that keeps your business fully compliant with local regulations while simplifying every aspect of workforce management.
Scalable HR for MENA
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Experience the only HR platform truly designed for how you do business in the Middle East. Book a demo to speak with our team about our global HR system today.
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WPS Rules in the UAE
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WPS compliance is mandatory for all employers registered with:
- MoHRE (Ministry of Human Resources and Emiratisation)
- JAFZA (Jebel Ali Free Zone Authority)
- DMCC (Dubai Multi Commodities Centre)
Employers must ensure that at least 80% of their workforce is paid through the WPS. This benchmark applies each month, guaranteeing consistency in wage practices.
Are There Any Exemptions to WPS Compliance?
Not all employees and employers are subject to the WPS mandate. The system makes allowances for specific exempt categories, either permanently or temporarily.
Exempt Employees
- New Employees: Those within their first 30 days of employment (from the wage due date).
- Employees on Unpaid Leave: As long as this is formally documented and submitted to MoHRE.
- Absconding Employees: Those who have been officially reported as absconding to MoHRE.
- Employees in Wage Disputes: If the employee has filed a wage-related labour complaint or legal case.
- Exempt Employers: Some categories of employers are permanently excluded from WPS requirements due to the nature of their work or legal structure:
- UAE Nationals Owning Fishing Boats
- UAE Nationals Owning Public Taxis
- Banks (as regulated by the Central Bank under a different framework)
- Houses of Worship
These exemptions acknowledge operational particularities while ensuring employee rights are protected under the broader UAE Labour Law.
What Happens If You Don’t Comply with the WPS?
The UAE maintains high standards in employment practices through a structured compliance framework for the WPS, including:
- Suspension of work permits
- To maintain the integrity of the system, regulatory measures include administrative fees ranging from AED 1,000 to AED 5,000 for non-compliance
- A potential downgrade of the company’s MoHRE rating
- Legal proceedings in severe cases
Book a Demo to Speak with Our Team about Our Global HR
Transform your HR operations with Cercli, a platform built specifically for MENA businesses that unifies workforce management needs in one powerful system. Manage your entire team, whether local or distributed across 160+ countries, with our comprehensive solution that handles:
- Multi-currency payroll
- Leave management
- Onboarding
- Compliance documentation tailored to the unique requirements of the MENA region.
Experience the only HR platform truly designed for how you do business in the Middle East. Book a demo to speak with our team about our global HR system today.
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