In the UAE, all registered companies or businesses must pay their employees through an electronic system that the government implemented. The Wage Protection System, or WPS, has become a vital element for the country’s economy to protect employees’ salary payments. Therefore, all employers in the UAE must know about the WPS salary check in order to use this system correctly.
In this article, you will learn everything you need to know about the WPS salary transfer process and its features. This way, if you are an employer, you will have the necessary knowledge to pay your employees compliantly using WPS. Furthermore, by using this system correctly, you will be able to avoid costly mistakes that may lead to legal issues. Let us observe:
1. What is the Wage Protection System (WPS) in the UAE?
2. How does the WPS work in the UAE?
3. What parties are involved during the WPS salary transfer process?
4. How many outstanding features and benefits does the WPS have?
5. What should you know about the eligibility and requirements for using the WPS?
6. How can you ensure compliance when paying workers’ wages with the WPS?
7. What are the penalties you may face for not joining the WPS?
8. What should you do to get the best value out of the Wage Protection System?
9. How can an employee withdraw their salary from the WPS?
10. How can PEO Middle East help you with your payroll processing?
1. What is the Wage Protection System (WPS) in the UAE?
If you run a company in the UAE, you have probably heard about WPS and the benefits it can provide. But what is WPS in the UAE exactly? The acronym WPS stands for Wage Protection System, and this element is an electronic transfer system. With this system, employers can pay their employees effectively while ensuring full compliance with the law.
The WPS includes a lot of benefits for both the employer and the employee. For example, the WPS salary check process becomes easier and more transparent thanks to the features of this system. Therefore, transferring employees’ salaries is a more secure procedure that benefits all involved parties.
2. How does the WPS work in the UAE?
Employers must follow four main steps when using the Wage Protection System to pay their employees, which are:
- Submitting a Salary Information File on the WPS: this document contains information about the company and its employees, including employees’ salaries and all details related to it. Some of those details that a SIF must contain are basic salaries, deductions, overtime payments, allowances, bonuses, and many others. But before sending it, an agent must complete a WPS salary check process to avoid submitting the SIF with mistakes.
- Salary check process by the Central Bank and the MOHRE: after employers submit the SIF, the pertinent authorities (the MOHRE and Central Bank) will conduct a WPS salary check. With this, it is possible to ensure that the SIF has correct and accurate details.
- After the WPS salary check process, the authorities will issue a payment order to the WPS agent. And then, the agent will transfer the money to your workers’ bank accounts.
3. What parties are involved during the WPS salary transfer process?
The WPS meaning in salary terms involves the transfer of wages through this system. And, at the same time, this process involves several parties from the Ministry partners during a transfer process, including:
- Employers: those who own companies or institutions registered with the Ministry of Human Resources and Emiratisation (MOHRE). They hire one or more employees in return for fixed wages, which they transfer to their employees through the WPS.
- Employees: they are the ones who work in the country’s private sector and receive fixed wages through the WPS. After receiving their salaries, they can withdraw them using different withdrawal options.
- Agents: an agent could be a bank, bureau de change, or financial institution, and must have authorization from the Central Bank of the UAE to operate. Agents offer wage payment services through the WPS.
- Banks: these are the financial institutions which employers have bank accounts with. By using their accounts and a WPS salary transfer format, employers can transfer wages to employees.
4. How many outstanding features and benefits does the WPS have?
Apart from answering the “what is WPS” question, we will also provide even more information about this important system. And learning about the most essential features of it will help you understand how this system can benefit you. Whether you are an employer or an employee, the WPS offers these features and benefits for effective salary transfer operations:
- Full security and efficiency to process salary payments.
- Special salary cards for employees.
- Innovative ways to allow employers to safeguard their interests.
- Improved job security that strengthens work relationships and safeguards the rights of all involved parties.
- By using WPS, employers will save time and effort when paying employees’ wages.
- The process related to salary check in the UAE is now more transparent with the WPS.
5. What should you know about the eligibility and requirements for using the WPS?
In order to join the WPS, it is important to meet certain requirements and conditions. For example, these are the main guidelines you should follow to join this system:
- Companies and businesses have to be registered with the Ministry of Labour. Also, they must have a bank account with a bank that operates in the UAE.
- Then, they must enter into contracts with banks, bureau de change, or any other authorized financial institution. And both parties have to agree on the services they will use and all fees and charges related.
Once your company has joined the WPS, you must pay workers’ wages through this system as per the specified deadlines. In the Ministerial Resolution No. 788 of 2009, you will find further information about the deadlines.
6. How can you ensure compliance when paying workers’ wages with the WPS?
Of course, there is one and only one way to ensure full compliance when paying your employees. And the correct answer is by using the Wage Protection System and following all of the guidelines it involves. For example, your company must join the WPS and meet all the requirements we mentioned in the previous sections.
On the other hand, once you have joined the system, you will have to comply with the rules it establishes. Every time you use the system to pay your employees, you must follow these instructions:
- You have to pay your workers at least once a month or on the dates that work contracts specify.
- All payments should be transferred via WPS to workers’ bank accounts by the deadlines that the UAE laws specify.
Furthermore, there are different rules to comply with, which will depend on the number of workers you hire. And these rules vary if your company has 50 workers or more. Penalties will also vary depending on this factor.
7. What are the penalties you may face for not joining the WPS?
If a UAE company fails to join the WPS or comply with its rules, it could face severe penalties. And, as we mentioned before, these penalties can vary depending on the number of employees a company hires. However, these are the most common consequences that companies may face for non-compliance:
- If they do not pay employees by the specified deadlines, their right to get new work permits will be denied. And the authorities can lift this ban only in the month following the transfer of employees’ salaries in full.
- If companies delay salary payments more than one month after the due date, they will get the same previously-mentioned penalty. Plus, all institutions owned by the owner of the infringing company will receive the same penalty too.
8. What should you do to get the best value out of the Wage Protection System?
As you may know now, the Wage Protection System can be a beneficial tool for UAE companies and employees. However, you can expand the benefits of this system by choosing the right WPS agent before processing salary payments. This way, your agent will conduct a WPS salary check process that will ensure zero errors and hence no delays.
In addition, the right agent will provide you with the most reliable and cost-effective services to pay your employees. And, if necessary, they can also make sure that all your employees have their respective accounts to receive their payments, which is beneficial for everyone.
9. How can an employee withdraw their salary from the WPS?
If you are an employee in the UAE, you should know that there are two ways to withdraw your salary. Having a WPS salary means being able to withdraw the money you earned by using a special card or ATM. However, there is one essential element that will determine which of the two options is more suitable for you.
If you have a salary account or bank account in the UAE, you can use an ATM to withdraw it. But in case you do not have a registered UAE bank account, you can opt for using a WPS card. Below, you will find more information about these options employees can choose to withdraw their salaries in the country.
9.1. Salary withdrawal by using a WPS card
Employees who do not have a bank account in the UAE can obtain a WPS payroll card. And with this card, they can withdraw their salaries successfully. Plus, they can use it at different locations across all UAE emirates.
On the other hand, UAE companies with WPS can access money exchanges in the country offering cost-effective WPS payroll services. With these exchanges, it is possible to obtain fund transfer facilities, as well as WPS salary disbursement to employees.
9.2. Salary withdrawal by using an ATM machine
Then, we can find this second option is for employees who have a registered bank account in the country. And this way, employees with a bank account in the UAE exchange WPS salaries and withdraw their money easily. All they need is their ATM card to complete the withdrawal process.
10. How can PEO Middle East help you with your payroll processing?
It is essential to have a clear idea of what the WPS salary check is about in the UAE. And if you need to get more information about this topic, feel free to get in touch with our specialists. With PEO Middle East, you can learn the details you need to know about the WPS for businesses in the UAE.
Furthermore, we can provide you with the payroll solutions you need to carry out your company’s payroll functions correctly. This way, your employees will receive their payments on time and without errors that can lead to considerable legal issues. Plus, our payroll services are available for all companies across the Middle East. Apart from this, our specialists can provide you with other services, including the following:
- Payroll outsourcing services.
- Employer of Record services (EOR).
- Professional Employment Organization services (PEO).
- HR management services.
- Hiring contractors.
- Hiring remote workers.
- Global immigration services.
- Relocation services.
Do you need to learn more about the procedure to check salary online in the UAE through the WPS? Then make sure to contact PEO Middle East to get more information about this system and how to use it. And by sending us an email at [email protected] or calling us at +971 43 316 688, we will be able to provide you with more details about WPS. Moreover, if you require any of our services, you can also learn more about them by contacting us.
On the other hand, if you are a professional looking for job opportunities, The Talent Point is your best ally. If you visit thetalentpoint.com, you will discover an unlimited number of job offers from the best companies in the UAE. And once you have found the perfect job offer, you can submit your CV and application at [email protected]. One of our specialists will gladly help you throughout the process.
