In line with the UAE government efforts and its development and modernization plans that aim at improving government performance and providing better and faster services to the public, the Ministry of Labor has implemented a Wages Protection System. This system is an important step towards ensuring and protecting the rights of workers, and towards establishing trust between establishments and their employees.
Companies that fail to abide by the decision will be subject to punishments and fines, and will not be able to obtain work permits.
- Save time and effort in payment of wages.
- Enhance employee productivity and loyalty.
- Ensure that companies pay employee wages periodically.
- Avoid having employees and employers carry large amounts of cash in the workplace.
In order to participate in this system, companies must select one or more agent from among the agents licensed by the Central Bank. Once the company’s authorized bank receives the employee salaries, it sends a notification to the Wages Protection System. The system then sends the workers’ details and wages as well as the salary transfer instructions electronically to the Central Bank of the UAE, which will, in turn, forward those details to the Ministry of Labor database in order to ensure that the details received correspond with those registered with the Ministry. The system will then send the approved information to the appointed agent in order to start paying the wages.
Workers that do not receive their salaries, or have any concerns regarding the method of payment can report their concerns in person at any of the Ministry’s offices or via the login page available in the “Helpful Links” column.
- The company shall enter into contract with a WPS agent that is approved and authorized by the Central Bank of the UAE to provide this service, be it a bank, bureau de change , or a financial institution
- The employer shall issue instructions to their bank to transfer wages to workers. Instructions shall be accompanied by a detailed wages list and a copy of the list shall be sent to the agent.
- The WPS will send workers’ details and wages as well as the salary transfer instructions electronically to the Central Bank of the UAE.
- Central bank will then forward those details to the Ministry of Labor database in order to make sure that the details received correspond with those registered with the Ministry
- The WPS will send the approved information to the appointed agent in order to start paying the wages.