The Wage Protection System- The Ministry of Human Resources and Emiratisation called on private companies to transfer their employees' salaries to bank accounts to avoid fines.
The Ministry said that salaries should be transferred through the Wage Protection System at specific dates.
"The ministry is working to guarantee the worker's right to receive his wages in return for his obligation to perform his job duties," said Maher Al-Obeid, assistant undersecretary.
"It also contributes to increasing the worker's productivity due to paying wages on time and in the specified amount."
The system, implemented in 2009, ensures that wages are paid on time.
According to Ministerial Resolution No. 739 of 2016 regarding wage protection, all companies registered with the Ministry must subscribe to the wage protection system and pay salaries through the system.
How Does the WPS Work?
Private sector companies registered with the Ministry must open an account with a bank in the United Arab Emirates. WPS authorizes the employer's bank or agent to pay the employees' salaries, and then the bank transfers the salary to the employee's bank account.
Salary can be transferred through banks, exchange offices, and approved financial institutions authorized to provide the service.
Fines for Violating WPS Rules
The authorities will punish companies late in paying salaries and not following the rules.
Wages not transferred within 10 days of the due date are considered a late payment. These are the fines for violating the rules:
- If a company provides incorrect data to evade salary transfer, it will incur a fine of 5,000 dirhams ($1,360) per worker and a maximum of 50,000 dirhams if multiple employees are involved.
- There is a fine of 1,000 dirhams per worker if salaries are not paid on the due date through the system.
- Obtaining fake salary slips signed by employees can result in a fine of 5,000 dirhams per worker.
If the company cannot comply with the above, the company registered with the Ministry will be banned from registering in the Wages Protection System and prevented from obtaining all new work permits until salaries are paid in full.
Mr. Al-Obaid said that any salary change must be made through the approved system.
He said employers could also use the "statement" service to transfer salaries, emailed every month.
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