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Wages Protection System (WPS) is an
electronic salary transfer system that allows
institutions to pay workers’ wages via banks,
bureaux de change, and financial institutions
approved and authorized to provide the service.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full 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 labour.

The WPS reflects the UAE's leading position in the region, and will increasingly project the country as a model worth emulating in the following areas:

  • Reiterating commitment to protect workers’ wages;
  • Providing innovative solutions that help employers safeguard their own interests and reduce the time and effort needed to pay workers' wages;
  • Taking serious steps to improve job security in order to strengthen work relationships in the UAE and safeguard the rights of all parties concerned;
  • Entrenching transparency and competitiveness;
  • Ensuring that the UAE Ministry of Labour is regularly and constantly updated on wages data in the private sector in order to guarantee that employers fulfill their salary obligations;
  • Taking protective and proactive measures to reduce labour disputes pertaining to wages.
 

The WPS applying mechanism is as below:

· The company shall open an account with one of the banks operating in the country, in case it doesn’t have one upon joining the WPS system;

· The company shall enter into contract with a WPS agent(For eg:C3 card )that is approved and authorized by the Central Bank of the UAE to provide this service, be it a bank, bureau de change , or a financial institution;

· The employer shall issue instructions to its bank to transfer wages to workers. Instructions shall be accompanied by a detailed wages list and a copy of the list shall be sent to the agent.

· The WPS will send workers' details and wages as well as the salary transfer instructions electronically to the Central Bank of the UAE, who will then forward those details to the Ministry of Labour database in order to make sure that the details received correspond with those registered with the Ministry;

· The WPS will send the approved information to the appointed agent in order to start paying the wages.

   
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