Abu dhabi: The Ministry of Human Resources and Emiratisation (MoHRE) has introduced an upgraded version of the Wage Protection System (WPS) in collaboration with the Central Bank of the UAE, Al Etihad Payments, and several MoHRE-accredited financial institutions through their digital platforms.
According to Emirates News Agency, the update was launched as part of the Ministry's partnership with e and Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Community Bank. This initiative is part of MoHRE's ongoing efforts to uphold workers' rights and facilitate ease of doing business by utilizing smart technology, enhancing transparency and competitiveness in the labor market, and advancing the UAE's Zero Government Bureaucracy Programme.
The Wage Protection System currently covers over 99 percent of private-sector workers, whose wages are transferred through the system by their employers, with total monthly transfers exceeding AED35 billion. The Ministry explained that the updated version of the WPS allows employers to manage salary payments efficiently with real-time data integration between MoHRE's systems and financial institutions via the Central Bank. This integration is executed through the digital platforms of these institutions, enabling customers to access smart digital solutions and top-tier services.
MoHRE highlighted that the new version expedites registration and verification processes, enhances communication between companies and relevant entities, and establishes a secure digital environment. The update signifies a significant advancement in wage management with its direct electronic integration, allowing employers to complete procedures digitally, accurately track salary transfers, and ensure timely wage distribution, thereby fostering a sustainable work environment and bolstering confidence in the national economy.
The enhanced system also contributes to labor market stability by strengthening governance within the WPS and ensuring employer compliance with the Federal Decree-Law on Employment Relationships. It improves labor market efficiency and agility by leveraging integrated digital financial systems.
Furthermore, the system provides a reliable database to aid in strategic planning and decision-making while protecting the rights of all parties through an automated oversight framework. It enhances collaboration between government, banking, and financial institutions to ensure transaction governance, reduce wage-related disputes, and increase transparency and competitiveness, aligning with the 'We the UAE 2031' vision.
The updated WPS underscores the UAE's dedication to fostering transparency and creating an appealing, equitable work environment that balances the interests of workers and employers. It represents a comprehensive digital transformation in line with international labor administration and financial governance best practices by expanding the number of participating financial institutions, boosting transfer processing efficiency, and integrating with financial institutions' digital platforms to facilitate easy and effective financial management for establishments.
UAE labor market legislation mandates private-sector employers to pay workers' wages monthly, as agreed in the employment contract, through the Wage Protection System, an electronic system that facilitates wage transfers via approved banks, financial institutions, and exchange houses.