Wages Protection System (WPS) is an electronic salary transfer system that allows companies to pay wages via banks and exchanges.
What is WPS system ?
Employer ( Business owner) must comply with the WPS system as required by the UAE
Who is responsible to comply with WPS rule ?
All employers who are registered with MOHRE (Ministry of Human Resources and Emiratization) must subscribe to WPS and pay wages to their employees accordingly.
Are all the Companies need to comply with WPS rule in UAE?
WPS rule isn’t applicable to free-zone companies except JAFZA and DMCC.
Is WPS rule apply to free zone companies?
It confirms workers’ rights and ensures transparency in the employer-employee relationship.
What is the importance of payment of salary through WPS ?
It become due after the 1st day of next month following entitlement month.
When does the worker’s wages become due for payment ?
Due wages should be paid up to 15th day of the next month.
Up to when the wages need to be paid ?
On the 3rd and 10th of the due month, Ministry will send a notice or reminder.
When will notice and reminder will be sent to company violating WPS ?
Yes, we can provide accounting , VAT, Corporate Tax, WPS training.
Can Danix Consultancy provide me with accounting training ?
On every 17th day of the due month.
What is the last date for suspension of company violating WPS ?
All the companies exclusively owned by the employers will adversely be affected.
In case of violation of WPS, will it affect other company of the employer?
If the violation is repeated within 6 months, a fine of AED 1,000 per worker, max. Of AED 20,000 will be applied.
What are the fines for non-compliance?
If it pays at least 80% of wages payable to eligible employees.
When does a company is considered complying with WPS?
It should be properly documented by the company.
What if employer deducts from employees’ wages?