Why WPS Compliance Is Non-Negotiable
The Wage Protection System (WPS) is a mandatory UAE government system requiring all private sector employers to transfer salaries electronically through CBUAE-approved banks or exchange houses within 10 days of the salary due date.
WPS non-compliance consequences are severe and immediate:
| Violation | Consequence |
|---|---|
| Salary delayed by 10+ days | WPS warning issued |
| 50%+ of employees unpaid | New work permit suspension |
| Repeat non-compliance | Administrative fines up to AED 50,000 |
| Persistent violations | Business activity suspension |
| Severe cases | Court referral and criminal prosecution |
We ensure 100% WPS compliance for every client, every month.
Our Payroll Services
Monthly Salary Calculation
Accurate, transparent payroll calculation every cycle:
- Basic salary, housing allowance, transport allowance, and other contractual components
- Overtime calculation (125% rate / 150% for holidays and night shifts)
- Commission and variable pay components
- Deductions — loan repayments, salary advances, absence deductions
- New hire proration for mid-month joiners
- Final settlement calculation for departing employees
WPS File Generation & Submission
We prepare and submit the MOHRE-standard WPS Salary Information File (SIF) every month:
- SIF file generation in the CBUAE-approved format
- Submission via your WPS-approved bank or exchange house channel
- Confirmation receipt and WPS portal verification
- Immediate resolution if a file is rejected by the bank
End of Service Benefit (EOSB) Calculations
UAE Labor Law entitles employees to gratuity at end of employment (after 1 full year of service):
| Years of Service | Gratuity Rate |
|---|---|
| 1–5 years | 21 days' basic salary per year |
| After 5 years | 30 days' basic salary per year |
| Less than 1 year | No entitlement |
We calculate EOSB accurately for every departing employee — errors result in MOHRE disputes and labor court claims. We also advise on accrual provisioning for active employees.
Annual Leave Management
- Leave balance tracking (statutory 30 days/year under UAE Labor Law)
- Leave encashment calculation (for outstanding leave at termination)
- Carry-forward policy management
- Leave salary during annual leave (based on basic salary)
- Sick leave and maternity/paternity leave tracking
Payslip Generation
Monthly payslips issued in English and Arabic — formatted for employee distribution and MOHRE inspection:
- Salary breakdown (basic, allowances, OT, deductions)
- YTD running totals
- Leave balance summary
- Digital and physical payslip options
New Hire & Termination Processing
- New employee payroll setup (effective from offer letter date or start date)
- Termination payroll: final salary, EOSB, outstanding leave encashment, unpaid expenses
- Gratuity and full final settlement letter for MOHRE submission
- WPS notification of terminations
Monthly Payroll Reports
Comprehensive monthly reporting for management and finance:
- Payroll summary by department and cost center
- Headcount reconciliation
- Variance report (month-on-month changes)
- Leave liability summary
- WPS confirmation report
Payroll Process — How It Works
Step 1 — Data Collection
You submit attendance records, leave requests, new hire details, and any changes (promotions, salary adjustments, one-time payments) via our secure portal or WhatsApp by a set date each month.
Step 2 — Payroll Processing
Our team calculates all components, applies deductions and additions, and generates the payroll summary for your review.
Step 3 — Review & Approval
You review and approve the payroll summary before any transfers are made. We are transparent — you see every calculation.
Step 4 — WPS Transfer
Once approved, we generate and submit the WPS file. Salary transfers are executed on time via your approved channel.
Step 5 — Reports & Payslips
Monthly payroll reports and employee payslips are delivered digitally. We archive all payroll records for the required UAE statutory period.
Payroll Pricing
Payroll pricing is based on headcount. Contact us for a customized quote — typical range:
- 1–10 employees: AED 500–1,000/month
- 11–50 employees: AED 800–2,000/month
- 51–100 employees: AED 1,500–3,500/month
- 100+ employees: Custom (per employee rate)
All prices include WPS file submission and monthly reports. EOSB calculations are included.
Emiratisation & WPS Interaction
Emiratisation (Nafis) requirements must be managed alongside WPS — UAE nationals enrolled in Nafis receive their salaries through a separate Nafis-compliant channel with additional reporting obligations. We handle Nafis payroll integration for clients with Emiratisation obligations.
Frequently Asked Questions
What is the WPS deadline for monthly payroll? Salaries must be transferred via WPS within 10 days of the contractual salary date (typically the last day of the month). If salaries are due on the 30th, WPS must be completed by the 9th of the following month.
Do free zone companies need to use WPS? Free zone companies are regulated by their respective free zone authority. Most major free zones (DMCC, JAFZA, DAFZA, DIFC, etc.) have adopted WPS compliance. We advise on your specific free zone's requirements.
What if we have employees paid in foreign currencies? For WPS purposes, salaries must be transferred in UAE Dirhams. We handle multi-currency contracts with AED conversion at agreed exchange rates for WPS compliance.
Can you process payroll for domestic workers? Domestic worker payroll follows different rules under Federal Law No. 10 of 2017 (Domestic Workers Law). We handle domestic worker salary calculations and MOHRE reporting separately from commercial employee payroll.
What records should I keep for MOHRE labor inspections? MOHRE inspectors can request: signed employment contracts, WPS transfer evidence, leave records, payslips, EOSB calculations for departed employees, and attendance records for the last 3 years. We maintain all of these in our archive for every client.
Office 225, Oud Metha Offices, Dubai Healthcare City | Ajman: Amber Gem Tower +971 50 380 7565 | support@hashmibusinessconsultant.com