If your company is registered in DMCC in Dubai and has staff on DMCC employment visas, their salaries have to be paid through the Wage Protection System (WPS). Not every UAE Free Zone requires WPS, but DMCC does, and it checks the monthly transfers through its Member Portal.
In practice, you need a bank or exchange house authorised by the Central Bank to process your payroll, each employee registered as soon as their Company Employment Card (CEC) or Permanent Identity Card (PIC) is issued, and a salary transfer in AED every month. Each employee must receive at least 85% of their registered salary. Shareholders do not have to be on WPS.
What is the Wage Protection System (WPS) in the UAE?
WPS is the UAE's electronic salary transfer system. The Central Bank of the UAE developed it together with the Ministry of Human Resources and Emiratisation (MOHRE) to make sure private sector employees are paid on time and in full.
Under WPS, salaries are not paid in cash or by an ordinary bank transfer. A bank or exchange house authorised by the Central Bank creates the salary file and processes the payment, so every transfer is on record.
Is WPS mandatory for DMCC companies?
Yes. WPS is mandatory for all Mainland companies, but not all Free Zones have introduced it. DMCC has, and it is mandatory for DMCC member companies.
DMCC requires its member companies to register for WPS and pay salaries through it. DMCC monitors the monthly transfers and identifies delays, so a late or missing payroll will show up in its reports.
In practice, DMCC does not fine companies that pay salaries outside WPS. Under the rules, though, salaries should still be paid through WPS.
Which employees must be registered for WPS in DMCC?
Every employee who holds one of the following must be registered for salary transfer:
- a DMCC employment visa
- a Permanent Identity Card (PIC)
DMCC accepts both banked and unbanked employees, as long as the salary goes through an approved bank or exchange house.
Do shareholders of a DMCC company have to be on WPS?
No. Shareholders are not obliged to register for WPS. If you want a shareholder included, you can add them on request.
Shareholders who live in the UAE usually hold a DMCC investor or partner visa, which has its own renewal rules. We explain them in our guide on DMCC investor visa renewal in Dubai.
How do you pay unbanked employees through WPS in DMCC?
An employee does not need a UAE bank account to be paid through WPS. You can process their salary through a licensed exchange house using an Agent ID.
This helps, for example, with a new employee who has not opened a UAE bank account yet. The salary still goes through WPS, and DMCC still sees it.
Who prepares the WPS salary file, and how does DMCC check it?
Your bank or exchange house creates the salary file each month. You give them the salary details, and they process the payment through WPS.
DMCC monitors compliance through reports in the DMCC Member Portal. This is how DMCC identifies delays and employees who were not paid.
What are DMCC's WPS compliance rules?
DMCC's compliance standards are:
- register each new employee immediately after their CEC or PIC is issued
- use only banks or exchange houses authorised by the Central Bank
- pay all registered employees every month
- pay salaries in AED
- make sure each employee receives at least 85% of their registered salary
The 85% rule works on the salary registered for each employee. If an employee is registered on AED 10,000 a month, they need to receive at least AED 8,500 that month.
What happens if a DMCC company does not pay salaries through WPS?
If a company does not comply, DMCC may take enforcement action. Because DMCC sees the monthly transfers, a missed month or a late payment shows up in its reports.
In practice, DMCC does not fine companies that pay salaries outside WPS. Under the rules, though, salaries should still be paid through WPS.
To stay in line with DMCC's rules, treat payroll day as a fixed deadline and send every salary through WPS on time.
How do you set up WPS for a DMCC company?
- Check with your bank and your relationship manager there that the bank is authorised for WPS, and ask them to connect your company account to WPS. If you work with an exchange house instead, make sure it is authorised by the Central Bank.
- Register each employee for WPS as soon as their CEC or PIC is issued.
- Pay every registered employee through WPS each month, in AED, and at least 85% of their registered salary.
If you are still opening the company's bank account, our guide on how to open a corporate bank account in Dubai explains the documents and timeline.
How does InBusiness help DMCC companies with WPS?
Many of our DMCC clients are commodity trading, shipping and holding companies, and we already handle their accounting, visas and company admin. If you need support with WPS, we can help you set it up with an authorised bank or exchange house and keep the monthly salary process in line with DMCC's rules.
For clients whose books we keep, salary payments appear in the monthly bank reconciliation, so a missed or short WPS transfer is easy to spot.
If you have employees in DMCC, book a 30 minute call with our English or Russian speaking team, or send us a message on WhatsApp at +971 50 219 8443.
FAQ
Is WPS mandatory for DMCC companies in Dubai?
Yes. DMCC requires all member companies to register for WPS and pay salaries through it. WPS is mandatory for all Mainland companies, but not every Free Zone has introduced it. In practice, DMCC does not fine companies that pay outside WPS, but the rules still require it.
Which DMCC employees must be registered for WPS?
All employees holding a DMCC employment visa or a Permanent Identity Card (PIC). DMCC accepts both banked and unbanked employees, as long as the salary goes through an approved bank or exchange house.
Do DMCC shareholders need to be on WPS?
No. Shareholders are not obliged to register for WPS. They can be added on request if needed.
Can I pay a DMCC employee without a UAE bank account through WPS?
Yes. You can process the salary through a licensed exchange house using an Agent ID. The employee does not need a UAE bank account.
What is the 85% rule for WPS in DMCC?
Each registered employee must receive at least 85% of their registered salary every month, paid in AED. For example, an employee registered on AED 10,000 must receive at least AED 8,500.
When should a new DMCC employee be registered for WPS?
Immediately after their Company Employment Card (CEC) or Permanent Identity Card (PIC) is issued.
How do I connect my DMCC company to WPS?
Check with your bank and your relationship manager there that the bank is authorised for WPS, and ask them to connect your company account to WPS. An exchange house authorised by the Central Bank can also process WPS salaries. Then register each employee and pay salaries through WPS every month.
What happens if a DMCC company does not comply with WPS in Dubai?
DMCC monitors monthly salary transfers through Member Portal reports and identifies delays. If a company does not comply, DMCC may take enforcement action. In practice, DMCC does not fine companies that pay outside WPS, but the rules still require every salary to go through WPS on time.
About InBusiness
InBusiness is a Dubai-based accounting, tax, and corporate services firm, founded in 2021, that acts as the UAE finance and compliance arm for international businesses. The team provides outsourced accounting, tax advisory, company formation, admin services, and immigration across all Free Zones and Mainland. The team speaks English and Russian.
