Cash dependency among low-wage workers in the UAE is decreasing for the first time in a sustainable manner, reflecting a shift in the way the country’s workforce interacts with the financial system.
Although the payment of digital wages has been mandatory for years under the Wage Protection Program, according to the latest analysis of Edenred’s behavior, the policy of the investment focus goes beyond access to use, education and compliance.
More than 60 percent of UAE workers earn less than AED5,000 per month. Although wages are now paid digitally almost universally, many workers historically withdrew most or all of their wages in cash immediately after they were paid.
Reliance on cash is declining among UAE workers
That behavior is starting to change. Reliance on income from low-wage workers fell from 84 percent to 69 percent over the past two years, marking the strongest multi-year decline on record.
Analysts say the change reflects a gradual improvement in digital usability, trust and financial awareness rather than regulatory pressure alone.
Despite the decline, cash is still popular. About 45% of workers still withdraw their wages within the first 24 hours of pay and another 30% do so within the next three days.
This shows that while few workers rely solely on cash, many continue to convert digital wages into real money immediately after being paid.
At the same time, digital money transfers have emerged as the fastest growing financial behavior among low-income workers. Easier multilingual communication, clearer pricing and improved fraud control have contributed to increased adoption, especially of remittances.
The adoption of digital payments is deepening in the UAE
Salary platforms are also changing in practice. Payroll applications, which were once primarily used for withdrawals and balance checks are transforming into employee platforms that include debt payments, remittances and savings tools.
Employers using mobile-based payroll systems report higher employee satisfaction and lower payroll-related inquiries, according to industry data.
Financial literacy has emerged as a similar concern. Despite the UAE’s advanced digital infrastructure, less than one-third of citizens demonstrate basic financial literacy.
Employers report that limited understanding of financial products contributes to salary disputes, repeated HR inquiries and high performance conflicts.
As a result, companies are increasingly partnering with financial technology providers to deliver educational programs in multiple languages covering budgeting, digital payments and smart lending.
On-site onboarding and in-person training are still the most effective methods, especially in fields such as construction, transportation and resource management.
In the first half of 2025, authorities flagged more than 5,400 establishments for labor law violations following a comprehensive audit, including failure to properly process wages through the Wage Protection Program. Enforcement details have increased pressure on employers to improve transparency and monitoring of wages.
Looking ahead, data analytics and artificial intelligence are expected to play a bigger role in identifying early signs of financial stress, irregular income inflows and potential fraud.
Industry experts warn that technology alone will not drive adoption unless the data is translated into clear and accessible guidance for employees.
