Registration with the WPS system in the UAE: setting up the payroll system
If your business activities in the Emirates involve employing staff, registration with the UAE WPS is a legal requirement. The UAE WPS system guarantees that wages are paid on time, thereby safeguarding employees’ wages and rights.
StableGrowz provides assistance with WPS registration: from selecting an agent to setting up the payroll process and managing payroll. Our experts provide comprehensive support for WPS registration, ensuring there are no errors that could lead to fines or account suspensions.
StableGrowz provides assistance with WPS registration: from selecting an agent to setting up the payroll process and managing payroll. Our experts provide comprehensive support for WPS registration, ensuring there are no errors that could lead to fines or account suspensions.
What is WPS and how does the WPS system work in the Emirates?
WPS UAE (Wages Protection System) is an electronic platform developed by MOHRE for the payment of wages. WPS Dubai automatically records all payments: who received what and when.
How do you pay wages via WPS?
The system works as follows: the employer creates a Salary Information File (SIF) – a payroll file containing information about employees and their wages – and then submits it via an accredited bank, exchange office or fintech provider. The agent verifies the file, processes the payments, and sends confirmation back to MOHRE. The entire process requires the payroll to be organised efficiently and for data in the system to be updated in a timely manner, including information on each employee’s work visa and labour card.
How do you pay wages via WPS?
The system works as follows: the employer creates a Salary Information File (SIF) – a payroll file containing information about employees and their wages – and then submits it via an accredited bank, exchange office or fintech provider. The agent verifies the file, processes the payments, and sends confirmation back to MOHRE. The entire process requires the payroll to be organised efficiently and for data in the system to be updated in a timely manner, including information on each employee’s work visa and labour card.
Who needs a WPS connection?
Registration with WPS is mandatory for:
WPS registration for mainland companies and WPS registration for free zone companies is a mandatory requirement for the lawful payment of salaries. It is also a key element of compliance for any organisation operating in the UAE.
- Companies on the mainland – without exception.
- Most companies in free zones – requirements vary.
WPS registration for mainland companies and WPS registration for free zone companies is a mandatory requirement for the lawful payment of salaries. It is also a key element of compliance for any organisation operating in the UAE.
Who is exempt from WPS?
The following organisations are exempt from registering their company with WPS (WPS registration UAE):
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State-owned organisations in which the government holds a stake.
Banks, religious organisations, taxi companies, and businesses where employment relations are governed by other regulations that do not fall within the jurisdiction of the MOHRE.
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Individuals who are self-employed or work as freelancers, provided they do not employ any staff.
Employees who work outside the Emirates under contracts with foreign employers.
What documents are required to register WPS?
To apply for a WPS, you will need:
It is also important to provide details of employees’ bank accounts to ensure funds are credited correctly.
- The company’s licence.
- Incorporation documents.
- Copies of the Emirates IDs and passports of the company’s owners and directors.
- A list of employees with their details.
- The company’s corporate bank account details.
It is also important to provide details of employees’ bank accounts to ensure funds are credited correctly.
How do I register with WPS?
Our ‘turnkey’ WPS registration service will save you the hassle of making changes and undergoing checks. We help you set up your payroll system and establish effective collaboration with your company’s HR department.
WPS employer registration consists of several steps:
WPS employer registration consists of several steps:
Conclusion of a contract for the opening and maintenance of a company account with Emirates Bank.
Choice of agent – a bank, a currency exchange bureau or a financial institution approved by the Central Bank.
Establishing a contractual relationship with an agent for the processing of payroll transactions via WPS.
Registration of the company with the MOHRE, together with the submission of details of employees and current employment contracts.
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Creating a file containing salary data and carrying out the initial salary transaction via WPS.
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How long does it take to register for WPS?
Connecting to the WPS and registering a company for the WPS in the UAE usually takes 5–10 working days, provided that the company is already registered with MOHRE and has a bank account. Delays in WPS registration for businesses are often caused by errors in the documentation.
What are the penalties for not having WPS?
Breaches of the WPS system rules result in serious penalties and operational restrictions:
- Penalties imposed by MOHRE. Wage arrears exceeding six months are subject to a fine of 5,000 dirhams per employee.
- Suspension of the commercial licence. If an employer systematically delays payments or fails to transfer salaries via the WPS, the regulator is entitled to suspend the licence until the breaches have been rectified.
- Hiring ban. The company is prohibited from taking on new staff until all arrears have been fully settled and compliance with the requirements has been restored.
Why do companies encounter problems when setting up WPS?
- an incorrect corporate account has been opened;
- an incorrect agent has been selected;
- errors in employee data;
- an incorrect Salary Information File (SIF);
- discrepancies with MOHRE data;
- errors in payroll.
How do I change the WPS agent?
You can change your agent once you have terminated your contract with your current provider. To do this, you need to:
Enter into a contract with a new bank or agent.
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In MOHRE, update the WPS connection details.
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Make a test payment via the new agent.
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Cost of WPS registration
Registration with the system itself is free of charge, but the cost of WPS registration includes associated expenses: a work permit (MOHRE), bank transaction fees, the administration of staff payroll cards, etc.
Why do people choose StableGrowz?
- Fully remote registration;
- Support until the first salary payment;
- Assistance in choosing a bank;
- Payroll set-up;
- Post-implementation support;
- Assistance with MOHRE inspections.
Employer registration with WPS UAE: a brief guide
All companies registered on the mainland, as well as most companies in the Free Trade Zones. This applies to WPS registration for small businesses, WPS registration for foreign companies and WPS registration for LLCs in the UAE.
The process involves opening a corporate account, selecting an accredited agent and submitting an application to MOHRE. We offer comprehensive assistance with setting up WPS in Dubai.
No, this is prohibited for all organisations subject to the system’s requirements. Paying salaries outside the WPS is considered a breach of UAE labour law and results in fines and account suspensions.
WPS registration support from StableGrowz
Our company offers a fully supported WPS registration service:
Don’t put your business at risk. Submit a request, and we’ll promptly register your company with WPS.
- WPS consultancy;
- WPS set-up;
- WPS registration for new companies;
- collection of documents required for WPS registration on behalf of the employer;
- opening a bank account;
- selection of an agent;
- remote WPS registration.
Don’t put your business at risk. Submit a request, and we’ll promptly register your company with WPS.
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