WPS and Work Permits in the UAE vs Italian Payroll, INPS and Hiring Rules

UAE employers run payroll through the Wage Protection System (WPS) and hire foreign staff through MoHRE work permits. Neither exists in Italy. Italian payroll is a monthly cycle of tax and social security withholding, filings and payslips, and the right to work depends on citizenship and immigration status rather than an employer-issued permit. This guide explains what replaces WPS and work permits, and why there is no shortcut through a social security agreement. Full comparison on Italy vs the UAE .

The UAE: WPS and MoHRE permits  

WPS. Every establishment registered with MoHRE must pay wages through the Wage Protection System, via approved banks, financial institutions or exchange houses. Under Ministerial Resolution No. 340 of 2026, wages for the previous month are due on the first day of each Gregorian month. The portal sets out escalating sanctions for late payment: alerts from day 2, suspension of new work permits from day 5, administrative fines from day 11, automatic labour disputes from day 16 and enforcement measures from day 21. Some employees (for example on documented unpaid leave) and some employers (for example banks) are excluded.

Work permits. MoHRE issues 13 types of work permit, including recruitment from abroad, transfers, part-time, temporary, mission, juvenile, student, UAE/GCC national, Golden visa holder and freelance permits. Most standard permits are valid for two years. The employer applies through an authorised signatory, the trade licence must be valid, and the job must match the licensed activity.

Nationals. UAE nationals must be registered with the GPSSA pension system, within one month of the work permit, according to the portal. Expatriates have no social security registration.

Italy: what replaces WPS  

There is no central wage-payment platform. Instead, an Italian employer must:

1. Register with INPS and INAIL as an employer (an employer without an Italian entity can register through a tax representative or use an EOR).
2. Notify the hire online (UniLav) by the day before work starts, and give written terms under the Transparency Decree (Legislative Decree 104/2022).
3. Run monthly payroll under the CCNL: gross pay, INPS (about 30% employer, 9.19% employee), IRPEF withholding and surcharges, TFR accrual.
4. Issue the payslip (cedolino) and keep the official labour book (LUL).
5. Pay net wages by bank transfer, typically by the date in the CCNL or contract, and pay taxes and contributions by F24 by the 16th of the following month.
6. File monthly INPS returns (UniEmens) and annual returns (Certificazione Unica, form 770).
7. Pay the 13th month in December (and 14th in June where the CCNL provides it).

Late payment of wages gives the employee rights to interest and to resign for just cause; failure to pay withholdings carries administrative and, above thresholds, criminal penalties.

Italy: who can work  

• Italian and EU/EEA citizens can work in Italy without a permit.
• Non-EU nationals need a residence permit that allows work. New hires from abroad usually enter under the annual quota decree (decreto flussi) or special channels such as the EU Blue Card and highly skilled workers, with the employer applying for nulla osta (work authorisation).
• UAE nationals are non-EU nationals for this purpose.

An Italian employer checks the right to work but does not “own” a permit in the way a UAE sponsor does, and the employee is free to change employer.

No Italy–UAE social security agreement  

Italy has bilateral social security agreements with a list of non-EU countries published by INPS, including the United States, Canada, Australia, Brazil, Turkey, Tunisia and others. The United Arab Emirates is not on that list.

What that means in practice:

• Posting a UAE employee to Italy. There is no certificate of coverage that would keep the person on a UAE scheme and exempt them from INPS. Expatriates in the UAE have no social security to keep anyway; a UAE national sent to Italy would face INPS in Italy and possibly continuing GPSSA rules.
• Hiring locally in Italy. INPS applies in full from day one, whatever the employee’s nationality.
• Totalisation. Contribution periods in the UAE and Italy cannot be combined for pension purposes under an agreement.

Italy and the UAE do have a double tax treaty, which deals with income tax, not social security.

Side by side  

Common questions from UAE HR teams  

Can we keep paying through WPS? No. WPS covers employees of UAE establishments. A person working in Italy for an Italian employer is paid through Italian payroll, with Italian withholdings.

Can our UAE company employ someone in Italy directly? In principle yes, by registering as a foreign employer with INPS and running Italian payroll, but this brings tax and permanent-establishment questions. Most companies use an EOR or set up an entity.

Does the employee need a visa? Italian and EU citizens do not. Others need a residence permit allowing work.

What this means if you hire through an EOR  

With an EOR, you do not register with INPS, open an Italian payroll or learn F24. The EOR is the employer: it notifies the hire, runs CCNL payroll, pays wages, taxes and contributions, issues payslips and files returns, and you pay one monthly invoice. For non-EU candidates, check eligibility with us before making an offer. Read the Italian employment contract overview, compare on Italy vs your country , model cost in the cost calculator or contact us .

Related guides for UAE companies  

• Tax-free salary vs IRPEF and INPS: the net-pay shock
• End-of-service gratuity vs Italian TFR
• Annual, sick and maternity leave and working hours

General information, not legal advice.