In a landmark move aimed at safeguarding the rights of domestic workers, the United Arab Emirates has officially updated its Wage Protection System (WPS) to include both cash and digital wage payments. This development promises enhanced transparency and timely salary disbursements for millions employed in the domestic sector.
The Ministry of Human Resources and Emiratisation (MOHRE) announced that employers of domestic workers can now pay wages either in cash or through approved digital platforms under the WPS framework, a first for the country’s workforce regulation policies.
Previously, the WPS primarily mandated bank transfers to ensure salary payments were tracked and timely. The new regulations acknowledge the unique employment conditions in the domestic sector, where cash payments have been common but harder to monitor for compliance.
Minister Saqr Ghobash stated, “This enhancement reflects our commitment to protecting all workers’ rights, ensuring domestic workers receive their salaries fairly and on time, whether paid electronically or in cash. It also strengthens oversight mechanisms and reduces payment disputes.”
Employers must register domestic workers’ wages in the WPS portal and maintain accurate records, regardless of the payment method. Digital payments will be processed through secure channels, while cash payments require documented acknowledgment to confirm receipt.
Labor advocates have welcomed the change as a step toward reducing wage exploitation and ensuring greater financial inclusion for domestic workers, many of whom come from vulnerable migrant backgrounds.
The updated system will be monitored closely by labor inspectors, with penalties for violations including fines and possible work permit suspensions.
This move aligns with the UAE’s broader vision to improve labor conditions as part of its commitment to international labor standards and ongoing reforms in worker protection.
