3 Changes WPS Law ⚖️ ( Ab Salary Time Pe Melay Ge ) Follow Procedures If Salary Delay In Dubai UAE
162What is the WPS?
Wages Protection System (WPS) is an electronic salary
transfer system that allows institutions to pay wages via
banks, bureaux de change, and financial institutions
approved and authorised to provide the service.
Could you list the main changes that were made to
the existing WPS?
The resolution highlights several other vital requirements
which must be adhered to by private sector employers:
All employee salaries must be paid on the
due date through the WPS
If salaries are not transferred by the 15th day
of the month, the company may be blocked
from the system from the 17th day of the
following month
Employers will have a 30-day grace period to
transfer new employees' salaries via the WPS
This has meant that companies in the UAE must
How does WPS work?
The employee's labour file number is linked to their work
contract in MOHRE. This is connected to the Central
Bank, and companies must clear all paynments through
their employee bank accounts.
The WPS system will then match the registered salary
level on the employee's work contract to ensure that the
correct amount is paid.
Ifthe amount is less than the registered salary level on the
MOHRE work contract, then the company will get
blocked in the MOHRE network, and the company will
need to resolve the payment issue.
What do these changes mean for UAE employees?
Does it benefit them?
These changes further strengthen the protections for
employees in the UAE, ensuring they are paid correctly
and on time.
The WPS system has been very successful in the UAE in
ensuring the rights of employees are upheld and payroll is
processed each month correctly, said Musa.
The new system also allows more flexibility and time,
through the 30-day grace period for an employer to
onboard a new employee onto the WPS system-further
ensuring that the employee can be correctly set up in the
system to ensure they are paid through WPS," he added.
Why was the WPS installed?
The WPS is an integral part of the UAE's labour
regulations. It is a system designed to ensure that
companies meet their obligations to pay their employees
promptly and that workers' rights are upheld.