WPS payroll in the UAE: the basics every employer needs

If you employ staff in the UAE private sector, you pay them through the Wage Protection System (WPS), run by the Ministry of Human Resources and Emiratisation (MOHRE). WPS lets MOHRE see that every employee is paid in full and on time. This guide covers what employers need to get right each month.

Rules as published on the UAE government portal and by MOHRE, checked on 28 October 2026. Payroll rules change; confirm the details for your business with MOHRE or your adviser.

When salaries are due

Under Ministerial Resolution No. 340 of 2026, in force since 1 June 2026, a month’s salary is due on the first day of the following Gregorian month, and every establishment registered with MOHRE must pay it through WPS on that date. The longer grace period of the earlier rules no longer applies.

When a payment is late, MOHRE applies graduated measures that start from the second day after the due date: electronic alerts, notifications and monitoring, escalating if the salary is still unpaid. Plan your payroll so the money reaches your agent before the first of the month, not on it.

How a WPS payment works

You prepare the payroll: each employee’s basic salary, allowances, overtime, deductions and net pay for the month.
You create the Salary Information File (SIF): a file in the WPS format that lists each employee, their identifiers and what they are paid.
You send the SIF and the funds to your WPS agent: a bank or an exchange house approved for WPS.
The agent pays your employees and the payment is recorded against your establishment with MOHRE.

The SIF must match what you actually pay. An employee who is missing from the file, or paid less than recorded, shows up in MOHRE’s records.

End-of-service gratuity

When employment ends, a full-time employee in the private sector is entitled to an end-of-service gratuity if they completed at least one year of continuous service. Under Federal Decree-Law No. 33 of 2021:

21 days of basic wage for each of the first five years of service;
30 days of basic wage for each year after that;
the gratuity is based on the last basic wage, so allowances are not included;
the total cannot exceed two years’ wage;
days of unpaid absence do not count as service, and part-time employees receive a share based on their hours.

UAE and GCC nationals are covered by pension and social security rules instead of this formula. Some employers have also moved staff to the optional alternative end-of-service savings scheme, which replaces the gratuity for those enrolled.

Because gratuity builds up every month, it is good practice to accrue it monthly in your books rather than finding a large bill when someone leaves.

A monthly checklist

New joiners added, leavers’ final settlements prepared.
Leave, overtime and deductions entered for the month.
Payroll checked against contracts.
SIF created and sent with funds before the first of the month.
Payroll posted to your accounts, with the gratuity accrual.

How Sijilna handles payroll

Payroll is part of the Premium plan:

Employees and salary packages: basic salary and allowances per employee.
Monthly pay runs: payslips in English and Arabic.
A WPS SIF file for your agent, plus an Excel copy for your records.
Posting to your books: every pay run lands in your accounts, with gratuity and leave provisions accrued.
When someone leaves: final settlements with leave salary and gratuity.
During employment: loans and salary advances, expense claims, and, with the employee portal add-on (AED 49 a month), a portal where staff see their own payslips, request leave and submit claims.

Payroll rates and rules differ between businesses (contracts, free zones, nationals’ pension), so review your payroll settings with your adviser before your first live run.

See the pricing page for what Premium includes, or start a free 14-day trial: trials include payroll.