WPS Salary Calculator

How is UAE WPS salary calculated?

UAE WPS salary is the total amount an employer pays an employee through the Wage Protection System. The SIF file breaks this into fixed, variable, and allowance components — each validated against the MOHRE employment contract.

WPS salary formula

Gross salary = basic + housing + transport + other allowances + overtime

Net salary = gross − total deductions

WPS eligible amount = basic + housing (core contractual wage for MOHRE cross-reference)

Deductions may include GPSSA contributions (for eligible employees), loan repayments, absence deductions, and other authorised items.

Example:

• Basic: AED 8,000
• Housing: AED 3,000
• Transport: AED 500
• Overtime: AED 480
• Deductions: AED 250
• Gross: AED 12,480 → Net: AED 12,230

SIF file mapping

| Payslip component | SIF field | |---|---| | Basic salary | Income Fixed Component (× 100 fils) | | Overtime / bonus | Income Variable Component | | Housing | Allowance 1 | | Transport | Allowance 2 | | Other allowances | Allowance 3 | | Deductions | Deductions field | | Net pay | Total Salary |

Fils conversion for SIF

SIF value = AED amount × 100

AED 8,000 basic → 800000 in the SIF file (no decimal point).

WPS compliance checks

For a salary to be WPS-compliant:

• Net pay must be positive
• WPS eligible amount (basic + housing) must match MOHRE contract
• Employee IBAN must be valid (AE + 21 digits)
• Total must reconcile: fixed + variable + allowances − deductions = total

GPSSA and pension deductions

Eligible UAE and GCC national employees may have GPSSA pension deductions. These appear on the payslip and in the SIF deductions field. Ensure GPSSA amounts are calculated correctly before SIF generation — incorrect deductions cause reconciliation failures.

Partial month and new starters

New joiners mid-month receive pro-rata salary. The SIF Days in Period field must reflect actual working days paid, and salary components must be pro-rated accordingly. Submitting a full-month salary for a partial-month employee triggers MOHRE mismatch flags.

Common WPS salary mistakes

1. Reporting only basic salary in SIF while paying allowances separately outside WPS
2. Entering AED amounts instead of fils in the SIF file
3. Deductions exceeding gross salary (negative net pay)
4. Overtime not included in the variable income component
5. Payslip breakdown that does not match SIF submission amounts

ArcHR calculates net pay, generates SIF-ready files, and validates IBANs before every payroll run.

WPS salary timing and contract reconciliation

The MOHRE employment contract defines the legal wage floor for WPS submissions. If actual pay including allowances falls below the registered contract amount, or SIF components do not reconcile to net bank transfer, the Central Bank may flag the establishment. Monthly contract wage reviews before SIF generation prevent the mismatches that block work permit processing.