One of the reasons you get up to work every morning is to earn your income. However, not every location worldwide has tools related to your salary’s protection. Fortunately, the UAE developed something that companies and employees can use to achieve this: the Wage Protection System (WPS).
In this article, you will discover all you need to know about WPS UAE. Learn what the WPS is, its goals, and the penalties companies can face from it.
- What is the Wage Protection System (WPS)?
- Why did the UAE authorities create the WPS?
- How can you perform the WPS Registration Procedure as an employee in the UAE?
- What should you do to withdraw your salary from WPS UAE?
- Which WPS penalties can your company face?
- Frequently Asked Questions
L1. What is the Wage Protection System (WPS) in UAE?
The UAE is a nation where performing a job search can show you its terrific economy. It is one of the top reasons why expatriates from more than 200 countries now live and work in the country. Nevertheless, it is also an attractive destination because of how they protect wages.
In this sense, the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MOHRE) launched the Wage Protection System (WPS) in 2019. It is an electronic salary transfer system that allows companies to use financial institutions to pay their employee’s wages.
Just as the Dubai Labour Court gives legal assistance, the MOHRE offers a reliable database of salary files. Companies can use such files to wage distribution to their employees. It is the reason they submit them to their respective banks, allowing MOHRE to ensure every employee gets his income.
In short, the WPS UAE allows companies and authorities to guarantee the payment of all employees’ dues. But, it is not the only reason the WPS exists. The next topic will show you what its goals and objectives are in detail.
2. Why did the UAE authorities create the WPS?
When you built your CV, you used the perfect resume format to catch the attention of companies and recruiters. Nonetheless, you also did this to show your professional skills to colleagues that could need your assistance. In other words, it was an action with several goals.
Similarly, the UAE authorities created the WPS to ensure companies will make their wage payments correctly. But, it also exists to deliver a wide variety of services to the employees in the private sector. Some of such services are the following:
- Provide a payment system that is both transparent and easy to use.
- Protect employees proactively while reducing labor disputes related to salaries.
- Safeguard the employers’ interests using the WPS salary transfer system to save time and effort.
- Provide the Ministry of Labour with a reliable database of wages in the private sector that is constantly updated.
In summary, the main goals of the WPS UAE relate to one objective: Protecting companies and employees regarding salaries. Hence, you will find it helpful to discover how you can register to get your WPS salary as an employee. You will learn how to do so in the following topic.
3. How can you perform the WPS Registration Procedure as an employee in the UAE?
You could think that beginning to earn the WPS salary involves a challenging procedure. But, you will discover it is as easy as writing an employment contract non-renewal letter to your employer. Let us show you the steps you need to follow to achieve this.
Essentially, it is the responsibility of the employer to register in WPS Dubai. All they have to do is enter the MOHRE’s official website to register their accounts. It implies entering their companies’ details provided by the Ministry, which are the following:
- Bank account information
- The company’s list of employees with information regarding which bank or agent they use
- The bank or agent of each specific employee when it implies
- The date at which they must pay their WPS salary.
Remember, the MOHRE will demand that you cannot pay your monthly salary on a date that is further than a month away. Moreover, you will have to keep your employees’ list updated. It is just like your CV when you perform a new job search.
4. What should you do to withdraw your salary from WPS UAE?
Once your employer registers his company in WPS UAE, your salary payments are adequately protected. Nevertheless, making purchases with your WPS salary involves specific procedures. Let us discuss how you can perform them during your mandatory breaks according to the UAE Labour Law.
First, you can withdraw your salary by using a WPS payroll card. Your employer can access this money exchange system to comply with his WPS salary payments. Above all, it is an excellent option for employees without a relevant bank account.
On the other hand, you also could use another system for accessing your WPS salary if you have a bank account. For instance, you can withdraw funds from such an account using one of several ATMs in the UAE. This option is quick enough to avoid affecting your punctuality.
In short, getting your WPS salary means more than just earning your income safely. It also means that you will have efficient and safe ways to spend it. As a result, you will find out the emirates are a terrific place to earn and enjoy your salary in numerous ways.
5. Which WPS penalties can your company face?
Unequivocally, every company in the UAE can enjoy the advantages of using the WPS salary transfer format. But, there are cases where some employers inexplicably choose not to register in the system. For such cases, the UAE authorities can impose severe penalties.
One way you can achieve your promotion is by explaining to your employer what penalties he could face. We will allow you that opportunity by showing you those penalties in detail. Here, you will learn that they can vary depending on the number of employees of the company.
Nonetheless, you must also explain to him that the UAE is a country with strict laws he shall follow. It will be an appropriate way to keep your company away from legal issues related to an unlimited contract’s termination. Assuredly, legal problems can be both uncomfortable and expensive.
Let us give you a glance at the WPS penalties your company can face according to its number of employees:
5.1 Penalties for enterprises employing over 100 employees
Imagine you work for a large organization that hired you because you stood out in your work interview. If this organization begins withholding your WPS salary, it could face tremendously hurting penalties. Here, you will discover some of them in detail.
In essence, an enterprise with more than 100 employees that fail to pay salaries in a period of more than one month past the due date can face the following penalties:
- Punitive measures established by judicial authorities
- The employer will not have permission to register other companies in WPS UAE.
- A company’s downgrading to the third category
- UAE authorities will allow employees to apply for new job offers in the labor market.
Moreover, the company also can face financial WPS penalties if its withholding period surpasses 60 days. They will receive an AED5,000 fine per employee to a maximum of AED50,000 for multiple employees. Consequently, it could mean a financial setback for the organization.
In summary, losing employees in your company because you did not perform their WPS salary transfer will not be your only problem. We strongly recommend complying with all the MOHRE guidelines.
5.2 Penalties for companies with a workforce of fewer than 100 employees
Logically, you could think fraudulent employers would skip these fines by reducing their workforce. But, you will find here that employers with a small team can also face WPS penalties. So, professionally reject their job offer if you receive one from them.
In essence, companies with fewer than 100 employees can face the following penalties if they fail to pay the WPS salary within 60 days from the due date:
- The loss of the license to issue work permits
- Fines issued by the Ministry of Human Resources and Emiratisation
- Further procedures according to the Court sentences
Furthermore, companies could also face the same penalties as the ones with more than 100 employees. Indeed, MOHRE will apply them if they fail to perform the WPS salary transfer twice a year. Ergo, it could mean big trouble for small companies with limited resources.
In short, committing WPS faults can mean dark days for bad companies in the UAE, so avoid working in such companies at all costs. You can even follow some tips to build a CV that will attract good companies’ attention.
6. Frequently Asked Questions
After seeing how the WPS UAE works, you most probably want to work in the UAE. By all odds, it is a process that does not have a linear path or a specific procedure. But, we want you to succeed in your goal and start enjoying your WPS salary.
Luckily, we prepared detailed answers to some frequently asked questions job seekers often do. Reviewing them will allow you to find a job in the already booming private sector. As a result, you could receive your own WPS payroll card.
However, feel free to search for answers to other additional questions you may have about this topic. You also can use this knowledge to search for a new job in other places like Saudi Arabia. After all, we live in a globalized job market nowadays.
Let us show you the answers to the following frequently asked questions about the job market in the UAE:
6.1 How can I get a job in the UAE?
The fast-growing economy of the UAE could make you think that getting a job there is difficult. Nevertheless, you will feel surprised knowing that it is not different from getting it in any other place. Just ensure to write the right things your CV needs.
On the other hand, many of your chances of getting a job in the UAE pass through visiting top job sites. Stick around to discover which one will allow you to receive your WPS salary faster.
6.2 What jobs are available in the UAE today?
As a land where several businesses are tremendously successful, the UAE offers a wide variety of jobs to potential candidates worldwide. Moreover, authorities also implemented a new classification system to create more job opportunities in the private sector. As a result, such a variety grows more every day.
Therefore, it will not matter if you want to work in the healthcare sector or the manufacturing business. Undoubtedly, the UAE is the place to go to boost your career. Systems like the WPS Dubai prove what the country can offer professionals worldwide.
6.3 Which top sites can I visit to search for job offers in the UAE?
Technology and globalization allow job seekers to find employment from anywhere in the world by using job sites. However, not all are good at offering attractive job offers and explaining the WPS UAE. Only a top site will show you where and how you can find a job successfully.
Now, you are probably wondering which top site you must visit to enter the UAE’s labor market. We can tell you that such a site is The Talent Point with absolute certainty. Our job offers and articles will show you how to get your Wage Protection System (WPS) salary card.
Find a job in a company registered in WPS Dubai through our services.
It will only take a moment to sign in to thetalentpoint.com and review our job offers.
Do you still have doubts?
Contact us to resolve them by calling us at +971 43 316 688 or an email at [email protected].
Kate WilliamsKate is the Global Strategy Director at Connect Group. She is specialized in company formation, international business expansion and employee relocation. She studied in Southampton (United Kingdom) and moved to the UAE in 2014.
