Cash dependence among low-income workers in the UAE is declining for the first time in a sustained way signalling a shift in how the country’s workforce engages with the financial system.
While digital salary payments have been mandatory for years under the Wage Protection System, according to Edenred’s latest behavioural analysis, the focus of financial inclusion policy is moving beyond access toward usage, education and compliance.
More than 60 per cent of the UAE workforce earns less than AED5,000 per month. Although wages are now paid digitally almost universally, many workers historically withdrew most or all of their salaries in cash immediately after being paid.
Cash reliance declines among UAE workers
That behaviour is beginning to change. Cash dependency among low-income workers has fallen from 84 per cent to 69 per cent over the past two years, marking the strongest multi-year decline recorded to date.
Analysts say the shift reflects gradual improvements in digital usability, trust and financial awareness rather than regulatory pressure alone.
Despite the decline, cash remains prevalent. Around 45 per cent of workers still withdraw their salaries within the first 24 hours of payment while another 30 per cent do so within the following three days.
This indicates that while fewer workers rely exclusively on cash, many continue to convert digital wages into physical currency soon after being paid.
At the same time, digital money transfers have emerged as the fastest-growing financial behaviour among low-income workers. Simpler multilingual interfaces, clearer pricing and improved fraud controls have contributed to increased adoption, particularly for remittances.
Digital payroll adoption deepens in UAE
Payroll platforms are also changing in function. Salary applications, once used primarily for withdrawals and balance checks are evolving into broader workforce platforms that integrate bill payments, remittances and savings tools.
Employers using mobile-based payroll systems report higher employee satisfaction and lower payroll-related queries, according to industry data.
Financial literacy has emerged as a parallel concern. Despite the UAE’s advanced digital infrastructure, fewer than one-third of residents demonstrate basic financial literacy.
Employers report that limited understanding of financial products contributes to payroll disputes, repeated HR inquiries and higher operational friction.
In response, companies are increasingly partnering with financial technology providers to deliver multilingual education programmes covering budgeting, digital payments and responsible borrowing.
On-site onboarding and in-person training remain the most effective methods, particularly in sectors such as construction, logistics and facilities management.
In the first half of 2025, authorities flagged more than 5,400 establishments for labour law violations following extensive inspections, including failures to process wages correctly through the Wage Protection System. The enforcement data has increased pressure on employers to improve payroll transparency and monitoring.
Looking ahead, data analytics and artificial intelligence are expected to play a larger role in identifying early signs of financial stress, irregular salary flows and potential fraud.
Industry specialists caution that technology alone will not drive inclusion unless insights are translated into clear and accessible guidance for workers.
