Wage Protection System (WPS)
Intervention Mechanism
An electronic wage payment system designed to pay wages directly into the bank accounts of workers, ensuring construction workers are paid fully and on time, and with no manipulation and abuse, particularly in contexts with high numbers of migrant and low-income workers.
Initiative Summary
Developed in the Gulf Cooperation Council (GCC) countries, the Wage Protection System (WPS) was designed to address systemic late payment issues driven by long subcontracting chains, outsourcing, and “pay when paid” practices, where payments to subcontractors and workers often occur with limited transparency. By introducing greater visibility over payment flows, the system identifies when wages to workers and subcontractors are delayed and make it more difficult to conceal fraudulent diversion of funds or abusive subcontracting arrangements. WPS enforcement mechanisms are largely centred on the system’s ability to suspend or restrict employers’ access to labour ministry services, including preventing non-compliant employers from hiring new workers.
Practice Lesson
The initiative demonstrates how electronic wage payment systems can strengthen transparency, accountability, and government oversight by enabling authorities, project owners, and principal contractors to monitor salary transfers and detect delayed or unpaid wages, as well as abusive or manipulative practices affecting construction workers and subcontractors. It can help reduce labour exploitation, debt bondage, and other forms of worker abuse, while improving trust between workers, employers, and regulators.
Reference
International Labour Organization. (2025). Wage protection systems in the Gulf Cooperation Council countries: A regional analysis (Report No. R10). Available from: https://www.ilo.org/sites/default/files/2025-11/ILO_Beirut_Wage-Protection_Report_R10.pdf