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A new cashless payment system has been launched in the UAE to safeguard domestic workers’ salaries. The system, introduced by First Abu Dhabi Bank (FAB) in collaboration with the Ministry of Human Resources and Emiratisation (MOHRE), is designed to make wage payments more secure and transparent.
How the System Works
Employers can now transfer monthly salaries directly to a debit card provided to domestic workers. These cards can be used to:
- Buy mobile phone credit
- Send money locally
- Remit money overseas
This digital wage solution aims to reduce delays and eliminate the risk of unpaid salaries, a concern often reported among domestic staff.
FAB Highlights Benefits for Workers
“We are proud to collaborate with MOHRE in developing a unified digital payment solution that serves a broader segment of society,” said Ramana Kumar, Head of Digital Banking at FAB. “This system ensures that domestic workers receive their salaries in a secure, simple, and consistent way.”
Bridging the Financial Gap
A survey by the Central Bank of the UAE shows that 39% of adults in the UAE do not have a bank account, and 15% lack access to formal financial services. This initiative is seen as a way to close that gap and include more people in the financial system.
WPS Exists, But Many Still Paid in Cash
While many low-income workers are already covered under the Wages Protection System (WPS), which tracks salary payments and penalizes delays, many domestic workers still receive cash. Payment methods are often decided between the employer and the worker, making cash payments harder to monitor.
Recruitment Agencies Support the Move
Recruiters welcomed the system, saying it protects both workers and employers.
“Electronic is better,” said a representative from a Tadbeer recruitment centre in Dubai. “That way, no one can say they didn’t get paid — it’s all recorded.”
Part of Wider Worker Protection Measures
This new system is part of the UAE government’s continued efforts to enhance labor protections, especially for domestic workers, through policy reforms and digital innovation.
