How to Check WPS Salary
The United Arab Emirates is home to expatriates from more than 200 countries, who contribute to the economic development and progress of the young nation. However, The UAE Government’s Wage Protection System (WPS), which has made wage payments and distribution easier and more transparent, is extended to domestic workers. Therefore, it is important to learn the process for WPS salary check.
In this article, we will explain the process of WPS salary check. The mechanism was initially launched in 2009 and then further strengthened in 2016. However, the pioneering policy was developed by the Central Bank of the UAE and the Minister of Human Resources and Emiratization (MoHRE).
1. What is WPS?
2. Why was the WPS introduced in the UAE?
3. How does it work?
4. What are the goals of WPS?
5. Who are the stakeholders?
6. How can employers register?
7. What are the penalties for a WPS violation?
8. WPS registration procedures
9. WPS payment process
10. How to withdraw your salary from WPS in the UAE?
11. WPS fines for organizations with less than 100 employees
12. WPS payment process
13. How can we help you obtain more information about WPS salary check?
1. What is WPS?
WPS stands for Wage Protection System. However, The Salary Custody System is an electronic salary transfer system that ensures organizations pay their employees through a WPS agent such as a bank, bureau de change, financial organization, or a company to ensure convenient and full payment of salaries to employees.
2. Why was the WPS introduced in the UAE?
Previously in the United Arab Emirates, there was no way to track how employees were paid, whether they were paid on time or at all.
However, this is why the UAE regime introduced the Wage Protection System (WPS) in 2009. Therefore, it has become mandatory for organizations to process their employees’ salaries through an electronic payroll transfer system regulated by the Ministry of Human Resources and Emiratization (MOHRE) and the UAE Central Bank.
WPS explained that organizations have the opportunity to pay their employees in a transparent way with little effort, legally defending their rights and consequently minimizing disputes between employers and employees.
3. How does it work?
To process salaries via WPS, you must have a contract with a WPS manager such as a bank, exchange house, or financial institution registered with MOHRE. Once you have managed payroll on your behalf, your WPS representative will be responsible for paying your employee’s wages.
The full period of WPS involves:
3.1 Registration
You must first register on the MOHRE website and set up your account with your login credentials.
You also will need to agree to the next points:
- Your business bank account information.
- A list of employees with details of the WPS manager your organization deals with salaries.
- The bank or pay card with which your employees receive their salary.
- The date on which the wages must be paid.
3.2 Salary transfer
When you have developed your account, you must generate and send the Salary Information Document (SIF). Also, The Salary Information Document (SIF) is an Excel sheet containing the list of employees and the contact details of the WPS manager with whom your company deals with salaries.
When producing a SIF, the information necessary is:
- Salaries or wages (base salary, deductions, allowances, overtime payment, Christmas bonus, among others) of each employee, i.e. record of employee details (EDR).
- The 14-digit union card number on the card issued by MOHRE once the employee visa is received.
- Your bank routing code, which you would have received from the bank or exchange offices.
- Employee bank account number (IBAN).
- Salary start date.
- Salary end date.
- Number of days of salary paid.
- Base or fixed salary.
- Variable salary.
- Number of sheets per year.
However, each time you want to pay wages, you must complete and send the SIF in the WPS. Therefore, you need to export the Excel document in .CSV format and then rename it to .SIF when you save it.
Ensuring that there are no errors in your SIF is key to getting instant validation from the Central Bank and MOHRE.
4. What are the goals of WPS?
- A firm commitment to ensure employee wages.
- Protect the interests of the employer.
- An instrument that will decrease the time and energy required to pay worker salaries.
- Offer to improve job security in the private sector, and instill better relations and protection of the rights of employees and employers.
- Transparent and easy-to-use payment system.
- An updated database for the Ministry of Labor.
- A step towards reducing labor disputes associated with wages.
5. Who are the stakeholders?
Employees, employers, banks, and agents, such as other financial institutions, and bureaux de change, which are authorized by the Central Bank of the UAE to pay wages through WPS, are the main stakeholders in the process.
6. How can employers register?
Private-sector employers can easily register with the WPS. Therefore, on the official MoHRE website, the entire system is available and employers can register their accounts using company information provided by the Ministry. However, employers can log into their accounts and update the list with:
- Bank account information.
- List of employees with details of the bank/agent with which the company works.
- The agent/bank with which an employee has an account.
- The day on which the remuneration is due.
7. What are the penalties for a WPS violation?
- Entering incorrect data in the WPS for evasion or circumvention purposes: 5,000 AED for each worker and a maximum limit of 50,000 AED in the case of several workers.
- Failure to pay on due dates through WPS: AED 1,000 per employee.
- Forcing employees to sign false pay stubs showing they received their wages: AED5,000 per employee.
8. WPS registration procedures
However, the entire system is available on the official MOHRE web portal, where employers have the option to register their accounts using their company data provided by the ministry. Employers have the ability to log into their accounts and update listings with:
- Bank accounting data.
- List of employees with details of the bank or manager with whom the organization works.
- The bank or manager an employee has an account with.
- The specific date on which the salary must be paid.
Keep in mind that, according to the MOHRE guidelines, “The month of salary cannot be different from the dates chosen to pay the salary of much more than one month.” Additionally, the guidelines further suggest that “if an employee continually joins or leaves a company, they will be required to upload a brand new list of employees and attach it to the application.”
9. WPS payment process
Organizations need to register with WPS for salary transfers. Once an organization has successfully an account, the next step is to proceed with the payment process, ensuring the following steps are completed:
- The employer must open a bank account with an approved bank or manager if they do not already have a bank account in the UAE.
- The employer must sign a WPS contract with the bank or manager.
- He may offer salary transfer rules to the bank or an agent.
- The bank or a representative notifies the UAE Salary Defense System, which sends employee details, salaries, and salary transfer format indications through an electronic system to the Central Bank of the UAE.
Subsequently, the UAE Central Bank sends all details to MOHRE for cross-checking. Therefore, WPS issues authorization to the employer’s bank or manager to cover employee salaries. However, the bank then transfers the salary to the employee’s bank entry.
10. How to withdraw your salary from WPS in the UAE?
Employees have the possibility to withdraw their salaries at the ATM or through a WPS card. These are the various ways to withdraw your WPS salary in UAE after you do your WPS salary check:
10.1 Withdrawal via WPS card
Employees without a major bank account have the possibility to opt for a WPS card in the UAE to withdraw their salaries. However, WPS-registered organizations have access to exchanges in the UAE that provide profitable WPS compliant payroll services. However, these exchanges provide funds transfer and salary payment services to employees. The WPS card is also issued by exchanges. The card can be used at different locations in the Emirates and you can do your WPS salary check with it.
10.2 Through an ATM
Employees with a bank account registered in the UAE have the possibility to use their ATM card to withdraw their salary.
10.3 WPS fines for organizations that do not pay employees’ salaries
WPS in UAE has a series of targeted sanctions to prevent organizations from withholding employee salaries. However, here is a list of penalties a company can face for not paying fees.
If a small and medium sized private sector company in the UAE with more than 100 employees fails to pay employee fees within 10 days, it is subject to the following penalties:
- The organization will not obtain any work permits from the 16th day of the salary arrears date. Organizations that delay salaries by more than one month from the due date will be referred to the judicial authorities for extra punitive measures.
- If the business owner has other organizations registered with WPS in the UAE, similar penalties will apply to each of them.
- Owners will not be able to register even a new company.
- Employees’ bank guarantees will be liquidated.
- The organization will face relegation to the third category.
- Workers will be left to discover other job opportunities.
- If wages are significantly overdue for more than 60 days, a fine of AED 5,000 per employee (whose wages are overdue) will be levied up to a maximum fine of AED 50,000 for multiple employees.
11. WPS fines for organizations with less than 100 employees
- Salary folder in a company.
- Failure to pay fees can lead to penalties.
- If a small or medium business with fewer than 100 employees fails to pay employee salaries within 60 days of the due date, they will continue to be subject to sanctions that include:
- Prohibited to produce working documents.
- The organization will be subject to fines by MOHRE.
- Reference to court to proceed with methods.
- If the company fails to pay salaries 2 times in a year, MOHRE will apply the same penalties mentioned for larger organizations with more than 100 employees.
12. WPS payment process
When the publication is successful, the next step is to process the payment with the following steps:
- One: At an approved bank or representative, the employer must open a bank account if they do not already have a bank account in the UAE.
- Two: The employer must sign a WPS agreement with the bank or manager.
- Three: In the UAE, the bank or manager notifies the WPS, which electronically sends the payroll and payroll transfer details to the UAE Central Bank.
- Four: For cross-validation, the UAE Central Bank sends all data to MOHRE.
- Five: WPS authorizes the bank or employer’s representative to pay the employee’s wages.
- Six: The bank then transfers the salary to the employee’s bank entry.
13. How can we help you obtain more information about WPS salary check?
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Would you like to contact us to find out more about the WPS salary check in the United Arab Emirates? Please, email [email protected] to request more information or share any concerns you may have for your company. Therefore, our team will review it carefully to send you a full response and actively assist you. We are at your disposal, do not hesitate and contact us!
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