Wages
Protection System (WPS) is an electronic salary transfer system that
allows institutions to pay workers’ wages via banks, bureaux de change,
and financial institutions approved and authorized to provide the
service.
The system, developed
by the Central Bank of the UAE, allows the Ministry of Labour to create a
database that records wage payments in the private sector to guarantee
the timely and full payment of agreed-upon wages.
The
WPS covers all institutions registered with the Ministry across all
sectors and industries and will benefit different categories of labour.
Requirements of WPS
1. The company needs to be registered with the Ministry;
2. The company should have a bank account with one of the banks operating in the UAE;
3.
The company should enter into contract with any bank, bureau de change
or financial institution approved and authorized by the Central Bank of
the UAE to provide the service. The two parties shall agree on any
service fees and charges.
4. Workers’ wages will be transferred via WPS by the deadlines specified in the Ministerial Resolution No. 788 of 2009.
5.
The institution will have to transfer workers' wages via WPS within two
weeks of their due date, or on the dates specified in the work contract
if wages are paid more frequently than monthly.
6.
The employer will be responsible for all expenses incurred upon joining
WPS, including bank fees, service provider charges, and all other
costs. Employers are not allowed to share any costs with workers' by any
means, including deducting from their wages, directly or indirectly
Consequences of Failing to Join WPS
Institutions
failing to transfer workers' wages by the deadlines specified above
will be denied the right to have new work permits. This ban will only be
lifted in the month following the transfer of workers' wages in full.
Institutions
that delay wages’ payment more than one month of the due date will be
denied the right to have new work permits, along with all institutions
owned by the owner of the violating institution, and to refer all those
responsible for the violation to the court, in accordance with
Ministerial Resolution No. 788 of 2009.
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