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?
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.
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.
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:
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:
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:
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.
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.
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:
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:
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.”
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:
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.
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:
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.
Employees with a bank account registered in the UAE have the possibility to use their ATM card to withdraw their salary.
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:
When the publication is successful, the next step is to process the payment with the following steps:
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We are currently present in 14 territories and offer our own superior outsourced solutions. This is why many companies choose us as their number one EOR provider. Therefore, we pride ourselves on what we do best. Therefore, please feel free to share your questions and requests when you are on one of the following regions:
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!
Also, if you want to become an employee of one of the many organizations in the UAE, visit thetalentpoint.com. in this portal you will find a wide variety of job opportunities to which you can easily apply to find the job of your dreams. Additionally, you can continuously send your resume and cover letter to [email protected]