Complete Guide to WPS Compliance in UAE

What is WPS?

The Wage Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers' wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service.

Why was it implemented?

The system was developed by the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MOHRE) to ensure that workers are paid the right amount and on time.

Key Requirements for 2026

1. Min salary transfer: You must transfer at least 80% of the registered salary.
2. Timely transfer: Salaries must be paid within 15 days of the due date.
3. SIF File: The Salary Information File (SIF) must be generated in a specific format (.sif) and uploaded to the exchange house.

"A single format error in your SIF file can cause the entire payroll batch to be rejected."

Common Pitfalls

• Incorrect EIDA Numbers: Ensure all Emirates ID numbers are updated.
• Currency Mismatch: The file must use the correct currency codes (AED).
• Inactive Employees: Remove terminated employees from the SIF generation immediately.