In a progressive move to strengthen labour protections, the UAE has now mandated that domestic workers must be paid through the Wage Protection System (WPS). This change aligns with ongoing efforts to improve transparency and uphold fair treatment across all employment sectors.
What is the Wage Protection System (WPS)?
The Wage Protection System is an electronic salary transfer system launched by the UAE Ministry of Human Resources and Emiratisation (MOHRE). It ensures that wages are paid accurately and on time via approved financial institutions. Until now, it mainly applied to private sector companies—but from 2024, domestic workers are also included under its umbrella.
With this mandate, employers are now required to register their domestic workers under the WPS and process their salaries through this system. This initiative is designed to promote transparency, reduce wage-related disputes, and ensure that domestic workers receive their due compensation promptly.
This blog is a part of UAE Mainland labour blogpost.
Why Is This Change Beneficial?
- Timely Salary Payments
The system ensures wages are disbursed on time, avoiding delays that domestic workers often faced with cash payments.
- Increased Transparency
With digital records of every payment, employers and workers both have proof of transactions, reducing disputes and confusion.
- Legal Protection
In case of disagreements or complaints, authorities can now refer to WPS records for verification, speeding up resolution.
- Financial Inclusion
By requiring domestic workers to have bank accounts, the system promotes financial literacy and access to services like savings, remittances, and even credit options. It is also important to note that administrative penalties are enforced against employers who fail to comply with Ministerial Resolution No. (675) of 2022 and Executive Regulation No. (106) of 2022, both of which pertain to Federal Decree-Law No. (9) of 2022 concerning domestic workers.
How to Get Started as an Employer
- Choose a bank or money exchange approved by the Central Bank of the UAE.
- Assist your worker in opening an account, preferably one with low minimum balance requirements.
- Set up monthly transfers through WPS channels.
This move by the UAE government is a game-changer for domestic workers’ rights. It brings much-needed structure, fairness, and dignity to a sector that was previously operating in grey areas. By holding employers accountable and empowering workers with transparency, the UAE is setting a powerful precedent for the region.
If you’re a sponsor or employer of a domestic worker, now’s the time to take action—and do your part in ensuring fair labour practices at home.
Part of ATB Legal’s Employment practice.