In the UAE, paying staff through the Wage Protection System (WPS) is mandatory for most companies. The right payroll software produces a SIF file your bank will accept, calculates salaries, end-of-service gratuity and leave accurately, and keeps you in line with Ministry of Human Resources and Emiratisation (MOHRE) rules — without spreadsheets.
What is the Wage Protection System (WPS) in the UAE?
The Wage Protection System (WPS) is a MOHRE initiative that requires employers to pay wages electronically through approved banks and exchange houses. Payroll software generates the Salary Information File (SIF) in the required format, which is uploaded to the bank to process the payroll.
What WPS payroll software has to do
Look for native SIF file generation that works with every UAE bank, automatic calculation of end-of-service gratuity and leave, Emirates ID capture and validation, and employee records that meet MOHRE requirements. It is a further plus if payroll is built into your accounting so payroll journal entries post automatically, and if the software supports payslips in Arabic.
How Xrero handles WPS payroll
Xrero has been WPS-ready from day one. It generates SIF files for every UAE bank, handles Emirates ID, end-of-service gratuity, leave and MOHRE compliance automatically, and issues bilingual payslips. Because payroll runs on the same platform as your accounting and your HR, payroll posts straight to your books — no re-keying and no reconciliation gaps. A payroll run for 142 employees can be set up and made SIF-ready in minutes.
Frequently asked questions
What is a SIF file?
A SIF file (Salary Information File) is the standard file UAE employers upload to their bank to pay staff salaries through the Wage Protection System. WPS-ready payroll software generates it automatically in the correct format.
Is WPS mandatory in the UAE?
Yes, the Wage Protection System (WPS) is mandatory for most UAE companies registered with MOHRE. Salaries must be paid electronically through approved channels, and non-compliance may lead to fines and the suspension of work permits.
Does Xrero generate SIF files for every UAE bank?
Yes. Xrero generates SIF files that follow the WPS format and work with UAE banks, along with Emirates ID validation, end-of-service gratuity, leave and records that meet MOHRE requirements.
Does the payroll software calculate end-of-service gratuity and leave?
Yes. Xrero calculates end-of-service gratuity and leave automatically on the basis of UAE labour law, so your monthly runs and final settlements are accurate.
Is Xrero payroll integrated with accounting?
Yes. Payroll runs on the same platform as accounting and HR, so payroll entries post straight to your books with no manual reconciliation.