The Wage Protection System (WPS) is a system implemented by the UAE government to ensure that employees are paid their wages on time. It mandates that employers pay their workers’ wages through approved channels, such as banks or exchange houses, ensuring transparency and preventing wage disputes.

The WPS was introduced to ensure that employees in the UAE receive their salaries promptly and in full. It aims to protect workers from exploitation, enhance the business environment, and improve transparency in salary payments.

All companies in the UAE with employees on work visas are required to use the WPS. This includes both private sector companies and government entities.

Employers must pay their employees through the WPS by depositing salaries into employees' bank accounts or through a recognized financial institution. The system ensures that payments are made electronically and the records are available for verification by the Ministry of Human Resources and Emiratisation (MOHRE).

If an employer fails to comply with the WPS regulations, they may face penalties, including fines, labor card restrictions, or even suspension of their business activities. The Ministry of Human Resources and Emiratisation may investigate and take action against non-compliant employers.

Employers are not allowed to deduct wages for reasons other than what is stated in the employee’s contract or based on specific agreements. Any wage deductions must comply with UAE labor laws and require the consent of the employee.

Employees can track their wages by checking their bank statements or by using the WPS online portal. The portal allows workers to verify if they have received their wages as per the agreed schedule.

Certain exceptions apply, such as for domestic workers or employees working under specific free zones. However, most employees in the private and public sectors must be included in the WPS system.

Employers who fail to comply with the WPS regulations may face fines ranging from AED 1,000 to AED 5,000 per worker, restrictions on hiring new workers, and suspension of business activities. Repeated offenses can lead to more severe penalties.

Employees who do not receive their salaries through the WPS should first contact their employer and request clarification. If the issue is not resolved, employees can file a complaint with the Ministry of Human Resources and Emiratisation, which will investigate and take appropriate action.