MoHRE Unveils Enhanced Wage Protection System To Streamline Salary Management In UAE

The Ministry of Human Resources and Emiratisation (MoHRE) has introduced an enhanced Wage Protection System (WPS). This initiative, in collaboration with the UAE Central Bank and Al Etihad Payments, aims to improve wage management. The system involves several MoHRE-approved financial institutions using digital platforms. This upgrade is part of MoHRE's efforts to protect workers' rights and streamline business operations through smart technology.

The updated WPS covers over 99% of private-sector employees, ensuring their wages are transferred through the system by their employers. Monthly transfers exceed AED35 billion. The Ministry stated that this version allows employers to manage salary payments efficiently with real-time data integration between MoHRE systems and financial institutions via the Central Bank.

This upgraded system facilitates seamless electronic integration, enabling employers to complete procedures digitally. It reads data from MoHRE systems, tracks salary transfers accurately, and ensures timely wage payments. This aligns with high standards of transparency and protection, supporting a sustainable work environment and boosting confidence in the national economy.

The new WPS version accelerates registration and verification processes while improving communication between companies and relevant entities. It enhances performance efficiency, data integration, and establishes a secure digital environment. The system also supports labour market stability by relying on supervisory bodies to strengthen governance within the WPS framework.

The system contributes to labour market efficiency by ensuring compliance with the Federal Decree-Law on Employment Relationships. It uses integrated digital financial systems to enhance agility. Moreover, it provides an accurate database for planning and strategic decision-making, protecting all parties' rights through a smart oversight framework.

Integration between government, banking, and financial institutions is improved to ensure transaction governance. This reduces labour disputes from delayed or unpaid wages while enhancing transparency and competitiveness in line with the 'We the UAE 2031' vision.

Commitment to Transparency

The updated WPS reflects the UAE's dedication to creating a transparent work environment that balances workers' and employers' interests. It represents a comprehensive digital transformation aligned with international best practices in labour administration and financial governance.

By expanding participating financial institutions and increasing processing efficiency for transfers, the system integrates with digital platforms for effective financial management by establishments. UAE legislation mandates private-sector establishments pay wages monthly through this innovative electronic system via approved banks, financial institutions, or exchange houses.

With inputs from WAM