MoHRE Strengthens Wage Protection System as 90 Financial Institutions Process AED 37 Billion in Monthly Salaries for 99% of Private-Sector Workers
Dubai: The Ministry of Human Resources and Emiratisation (MoHRE) has announced that over 90 financial institutions, including banks and exchange houses, are actively engaged in the Wage Protection System (WPS), which facilitates salary transfers exceeding AED 37 billion each month. This initiative plays a crucial role in ensuring timely wage payments for approximately 99% of private-sector employees.
The ministry reported a significant increase in compliance with wage payments in the private sector last month. Many companies opted to disburse salaries ahead of the Eid Al Adha holiday, demonstrating a commitment to timely payments and reflecting a robust culture of compliance within the labor market.
The implementation of the new Wage Protection System decision is set to commence on July 1, covering salaries for June. This decision aims to provide companies with a gradual approach, allowing them time to rectify any non-compliance issues before regulatory measures are enforced. The ministry anticipates that this strategy will mitigate labor disputes and work stoppages, thereby enhancing labor market stability and making the UAE more appealing to skilled professionals.
Key Pillar of Labour Market Stability
Khalil Ibrahim Al Khoury, Undersecretary for Labour Market Operations and Emiratisation at MoHRE, emphasized that the Wage Protection System is a fundamental component supporting labor market stability in the UAE. He noted that the system promotes transparency, safeguards workers’ rights, and enhances compliance within the business environment. By ensuring timely wage payments, it fosters confidence in the workplace and helps prevent disruptions that could jeopardize employment relationships or business continuity.
Al Khoury stated that the recent decision is part of the ministry’s ongoing efforts to refine the regulatory and procedural framework of the Wage Protection System. This includes improving monitoring efficiency and governance while reinforcing stable labor relations. He clarified that the changes do not introduce significant new obligations for employers but rather enhance existing procedures and governance mechanisms.
Early Intervention and Risk-Based Approach
The Undersecretary explained that the new decision standardizes monitoring procedures related to wage payments, clarifying obligations and enabling quicker responses to delayed payments. The ministry employs a risk-based and phased approach, beginning with electronic monitoring of delayed payments, followed by notifications and direct communication with companies to allow them to rectify their status.
Only after these initial steps will precautionary measures, such as suspending certain services, be considered. Further escalation will occur only in cases of persistent non-compliance. This method is designed to encourage preventive compliance, giving companies ample time to address issues before penalties are imposed.
Al Khoury highlighted that enforcement efforts will focus more on labor-intensive sectors, such as construction and maintenance, where salary delays can significantly impact labor relations and business continuity.
85% Salary Transfer Threshold
Al Khoury indicated that a company is deemed compliant if it transfers at least 85% of the total wages due. This threshold allows for operational flexibility, accommodating circumstances such as annual leave, sick leave, and legally permitted deductions due to employee absences, while still protecting workers’ rights and financial stability.
More than 60 Million Interactions with Companies
The Undersecretary noted that MoHRE oversees over 600,000 companies, with the vast majority adhering to wage payment requirements. He emphasized the ministry’s commitment to direct communication with employers prior to taking regulatory action. In 2025, MoHRE recorded over 60 million interactions with businesses through various communication channels, including text messages, emails, and phone calls.
Some compliance-monitoring measures are based on risk assessments, economic activity, and workforce size, ensuring that attention is directed toward sectors most vulnerable to the impacts of salary payment delays while maintaining the stability of critical industries.
July 1 Implementation
The ministry reiterated that the new decision will take effect on July 1, 2026, for salaries due for June. The Wage Protection System aims to ensure timely wage payments, strengthen trust in the workplace, reduce labor disputes and work stoppages, and support stable employment relationships and business continuity.
MoHRE also highlighted that the Wage Protection System is one of the UAE’s largest financial programs, managing monthly transfers exceeding AED 37 billion. This underscores the system’s vital role in supporting labor market stability, enhancing business confidence, and aligning with economic growth and expansion across various sectors.
As reported by www.emirates247.com.
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Published on 2026-06-05 17:20:00 • By FAME Delivered News Desk