WPS in the UAE: paying salaries and gratuity
WPS (Wages Protection System) is a government salary-payment system via banks, overseen by the labour ministry (MOHRE). It guarantees timely, full payment. On termination an employee is due end-of-service gratuity. There is no personal income tax on salaries in the UAE.
What WPS is
WPS is an electronic system through which an employer pays salaries. The company uploads the payroll file via a bank or authorised operator, and the state checks that payments arrive on time and in full. Violations (delays, underpayment) can lead to fines and a freeze on new work visas.
Employer duties
- register the company in WPS;
- pay salaries by the deadline;
- track leave, sick days and allowances;
- calculate end-of-service gratuity on termination.
End-of-service gratuity
Gratuity is usually based on basic salary: 21 days for each of the first five years and 30 days for each subsequent year, with at least one year of service. The exact amount depends on the contract type and reason for leaving. We handle payroll, WPS and gratuity for you.
FAQ
What is WPS?
A government salary-payment system via banks overseen by MOHRE, ensuring timely payment.
Is WPS mandatory?
Yes for MOHRE-registered (mainland) companies; many Free Zones apply similar rules.
Is there salary tax?
No — the UAE has no personal income tax.