UAE WPS Update: No More Grace Period, Penalties are Automatic

This article describes the initial implementation and mechanism of the Wages Protection System (WPS) in the UAE, primarily based on the Ministerial Resolution No. 788 of 2009.

While the fundamental purpose and mechanism of WPS remain the same—it is still an electronic system to ensure timely payment of wages—the deadlines, consequences, and specific penalties have been significantly updated and made much stricter since 2009, especially under the new Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) and subsequent Ministerial Resolutions.

Here is the updated status, focusing on the current rules for late payment and penalties:

💰 UAE Wages Protection System (WPS): Mandatory Compliance & Strict Penalties

#WPS #WageProtection #MoHRE

The Wages Protection System (WPS) remains the mandatory electronic salary transfer system in the UAE private sector, ensuring workers receive their agreed-upon wages on time. The Ministry of Human Resources and Emiratisation (MoHRE), in coordination with the Central Bank of the UAE (CBUAE), strictly enforces this system.

Key Current Requirements & Deadlines

Requirement	2009 Rule (Article)	Current (2025) Rule (MoHRE/WPS)
Transfer Deadline	Within two weeks of the due date.	Wages must be paid via WPS within a maximum of 15 days from the due date specified in the employment contract.
Defining Late Payment	Delaying payment for more than one month of the due date.	Payment is considered delayed if not transferred within 15 days of the due date.
Compliance Exemption	Exemption periods based on the number of workers (100+, 15-99, etc.).	No general exemptions. WPS coverage is mandatory for all private sector companies registered with MoHRE, regardless of size.

🛑 Current Consequences and Penalties for WPS Violations

The consequences for non-compliance are much faster and more severe today than the 2009 penalty of simply denying new work permits. Penalties are now automated and escalate rapidly:

Delay/Violation Type	Current MoHRE Action/Penalty
17 Days Delay	Automatic Suspension of New Work Permits: The company is immediately blocked from hiring new employees.
30 Days Delay (or More)	Legal Escalation and Further Bans: * The Public Prosecution may be notified for further legal action (for companies with 50+ workers). * The ban on new work permits may extend to all companies owned by the same partners (for repeat violators).
60 Days Delay (Worker Right)	If a worker's salary is delayed for 60 days or more, the employee has the legal right to terminate their contract immediately and join a new employer without being penalized or banned, and is entitled to full end-of-service dues and compensation.
Failing to Register in WPS	Companies not registered in WPS may face fines starting from AED 5,000 per worker.
Fines for Non-Payment/Delay	Administrative fines start from AED 1,000 per employee (up to AED 20,000 maximum fine).
Repeat Violators	Companies that repeatedly violate WPS rules may face downgrade to the lowest classification (Category 3), which impacts their ability to conduct business with government entities.

Note on Expenses

The rule stated in the 2009 article remains absolutely firm: The employer is responsible for all expenses incurred upon joining WPS (bank fees, service charges, etc.). Employers are strictly prohibited from deducting any WPS-related costs from workers' wages.