Al Ansari Exchange: 151% increase in the number of companies using the wage protection system

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Dubai, June 2, 2018 (WAM) – Al Ansari Exchange recorded an increase of more than 151% in the number of companies that processed their employees’ salaries through its Wage Protection System platform on June 1, coinciding with the start of implementing new salary disbursement requirements on private sector establishments in the country.

This increase came in conjunction with the entry into force of Ministerial Resolution No. 340 of 2026, which requires all private sector establishments registered with the Ministry of Human Resources and Emiratisation to transfer workers’ wages through the Wage Protection System on the first day of every month.

The Wages Protection System is supervised by the Ministry of Human Resources and Emiratisation and the Central Bank of the United Arab Emirates, with the aim of ensuring that wages are paid on time, enhancing compliance with applicable regulations, and establishing higher levels of transparency in the labor market.

The Al Ansari Exchange platform for the wage protection system witnessed a noticeable increase in corporate activity during the first day of implementing the new requirements, as the number of companies using the platform more than doubled compared to usual rates, in a step that reflects the speed of response of private sector institutions to the updated regulatory requirements and their keenness to align salary disbursement procedures with the new regulatory framework.

This growth highlights the pivotal role played by the wage protection system in supporting labor market stability, protecting workers’ rights, and enhancing the efficiency of employers’ salary disbursement processes, and reflects the rapid expansion in the adoption of digital solutions for salary management, as institutions seek to simplify wage disbursement procedures and meet evolving regulatory requirements more efficiently.

Ali Al Najjar, CEO of Al Ansari Exchange, said that implementing the ministerial decision constitutes an important step towards strengthening the labor market system in the UAE and consolidating the principles of transparency, accountability and protecting workers’ rights. With the start of implementing the new requirements, the importance of providing reliable and effective solutions for payroll management increases, which helps companies comply with the regulations with ease.

Implementing the updated requirements for the Wage Protection System is part of the UAE’s ongoing efforts to enhance labor market governance, raise compliance levels among employers, and consolidate the protection of workers’ rights.

Unifying the salary disbursement schedule in various private sector establishments contributes to enhancing the regularity of wage disbursement operations and supporting the state’s goals aimed at providing a more competitive and sustainable business environment.