IMPLEMENTATION OF WPS IN DUBAI MULTI-COMMODITIES CENTRE (DMCC)
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 authorized to provide the service. Developed by the UAE Central, the system allows the Ministry of Labor to create a database that records wage payments within the private sector, guaranteeing timely and complete 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 labor. Who are the impacted parties? Workers: Every individual working within the private sector for agreed-upon wages and holding a labor card issued by the Ministry. Employers: Anyone who owns a company or institution registered with the Ministry and employing one or more workers in return for agreed-upon wage. Banks: Financial institutions where the employer maintains a bank account used to transfer wages through the WPS network, to the appointed agent who in turn distributes wages onward to the workforce. Agent: Any bank, bureau de change or financial institution approved and authorized by the UAE Central Bank to offer payment of services via WPS. The Central Bank of the UAE issues a regularly updated list showing names of approved and authorized agents. WPS has been implemented to provide a safe, secure, and effective way to facilitate the employer's regular transfer of wages by their employers. This helps MOHRE to keep a record of private sector salary payments to ensure that employers failing to pay their staff on time can be identified. The system requires employers to submit employee payroll information electronically and make wage payments through a designated bank/exchange. DMCC initiated WPS with effect from 15th February 2023. Registration must be completed for all employees with an active Employment Visa or Personal identity Card. Also, shareholders are not required to be registered with UAE WPS. Fines for non-registration will be applicable from January 2024, if a DMCC-registered company fails to transfer their employees' due salaries as per the employment contract, the DMCC may implement portal sanctions and fines, which will be deducted from the company's portal account. As per Ministerial Resolution No. 788 of 2009 on Wage Protection it states that at least 80% of the total monthly salaries should be transferred through UAE WPS. The salaries should be paid in Dirham (AED). Charges imposed by banks or exchange houses are not to be deducted from the wages/salaries of the employees. The employees should be registered with banks or exchange houses authorized by the Central Bank of UAE.
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