Digital Wage Protection System With Real Time Tracking Launches in UAE
The upgraded system allows high-precision tracking of salary transfers and ensures workers receive wages on time.
The Ministry of Human Resources and Emiratisation has launched an enhanced version of the Wage Protection System in partnership with the Central Bank of the United Arab Emirates and Al Etihad Payments, enabling real-time salary tracking and allowing employers to complete all wage procedures digitally through participating financial platforms. The ministry said the upgrade integrates its systems with financial institutions via the Central Bank, providing advanced services through digital channels. The enhanced version accelerates registration and verification, strengthens communication between companies and relevant authorities, and enables direct electronic integration so employers can retrieve data from the ,inistry’s systems to finalise payroll procedures. Partnerships include e& Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Bank, alongside accredited financial institutions using their digital platforms. The upgraded system allows high-precision tracking of salary transfers and ensures workers receive wages on time. It also improves governance of the Wage Protection System framework through regulatory oversight, reinforces employer compliance with the Labour Relations Regulation Law and related decisions, and provides an accurate database to support planning and decision-making. The update enhances integration between government, banking, and financial entities to ensure transaction governance, reduce wage-related labour disputes, and improve transparency and competitiveness, in alignment with the UAE Vision 2031 objectives. The Wage Protection System covers more than 99% of private-sector employees, with wages exceeding AED 35 billion processed monthly through the system by employers. Launched in July 2009, the system requires private-sector establishments to pay employee wages monthly in the amount and on the date stipulated in employment contracts via accredited banks, financial institutions, and exchange houses. Non-compliance may lead to restrictions on work permits and fines of up to AED 5,000 per employee, with similar penalties for providing false information or issuing fraudulent pay slips.
