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WPS in the UAE: paying salaries and gratuity

Updated: July 2026 Reading: 4 min Author: PROFIT-A expert
In short

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.

0%personal income tax
21days/year (first 5 years)
30days/year (thereafter)

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

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.

This material is for reference only and is not legal advice. Payroll and gratuity rules depend on the contract type — verify with a PROFIT-A specialist.

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