Image: Gulf Business archive
Financial inclusion is emerging as one of the UAE’s most urgent socio-economic priorities as the country accelerates digital transformation and strengthens worker welfare frameworks. With more than 60 per cent of the UAE workforce earning under Dhs5,000 per month, salary access and usage have become core pillars of sustainable labour reform.
While the Wage Protection System (WPS) has delivered near-universal digital salary coverage, a large segment of the workforce still struggles to access the full benefits of digital finance. Edenred’s 2025 behavioural analysis outlines five major shifts that are expected to define the next phase of progress in 2026.
Read: UAE unveils wage overhaul: New WPS sets benchmark for digital payroll
1. Cash dependency is structurally declining for the first time
Although workers traditionally relied on cash despite receiving salaries digitally, behaviour is now changing at the fastest recorded pace. Cash dependency among low-income workers has dropped 15 points in two years—from 84 per cent to 69 per cent—marking the UAE’s first multi-year structural decline.
Still, almost half of workers continue to withdraw their full salaries within 24 hours of being paid. However, the rise of transparent, multilingual digital remittance tools is accelerating digital adoption and reshaping spending patterns. Edenred predicts that cash withdrawals could fall below 60 per cent in 2026, signalling a genuine transition from “digital salary, cash life” to broad digital usage.
2. Payroll apps are evolving into full-service ‘workforce super-apps’
Salary apps have expanded beyond balance checks and are emerging as all-in-one platforms for remittances, bill payments, micro-savings and daily services. HR teams using integrated payroll ecosystems report employee satisfaction increases of up to 25 per cent.
In 2026, the most significant gains are expected from non-financial services layered onto payroll apps—tools that make daily tasks easier for workers with limited digital experience. Payroll platforms are shifting from transactional utilities to essential everyday tools.
3. Financial literacy becomes a business-critical requirement
Despite the UAE’s reputation for innovation, only 31 per cent of residents demonstrate basic financial literacy. The gap has become more visible as new salary-linked financial products grow.
Low financial literacy leads to higher payroll queries, misunderstandings and workplace disputes, directly affecting productivity. As a result, more employers are partnering with fintech companies to deliver multilingual financial education, often through field-level workshops, which have proven to produce the highest activation and safe-usage rates.
4. Rising compliance standards increase pressure on employers
MoHRE flagged more than 5,400 establishments for labour-law violations in the first half of 2025 alone, following 285,000 inspections. Fines and work-permit restrictions are becoming more common as the ministry intensifies WPS enforcement.
As compliance moves from paperwork to continuous monitoring, companies are expected to adopt more transparent payroll systems that offer real-time visibility into salary flows and prevent procedural lapses.
5. AI and analytics are enabling personalised financial support
AI is emerging as a critical inclusion tool, capable of detecting behavioural risks early—such as unusual spending patterns, potential fraud exposure, or signs of financial distress.
However, Edenred notes that AI’s impact depends on translating analytics into simple, actionable guidance. Workers benefit most when insights are delivered through clear, multilingual alerts and practical financial tips. AI identifies risks; inclusion comes from easy-to-understand interventions that help workers build resilience.
With shifting behaviour, tighter compliance, and rapid adoption of digital financial tools, the UAE is entering a new phase in its workforce financial inclusion journey. As Edenred’s analysis shows, 2026 will be defined by the convergence of technology, regulation, and worker empowerment—moving the workforce closer to a fully digital financial ecosystem grounded in trust, transparency and long-term welfare.
