Salaries must be paid on time via WPS by mid-month, UAE authority says in new resolution

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Salaries must be paid on time via WPS by mid-month, UAE authority says

The UAE’s labour authority has issued a new resolution ensuring that employees in the country receive their salaries through the Wage Protection System (WPS) by the 15th of every month.

The Ministry of Human Resources and Emiratisation (MoHRE) recently issued amendments to the WPS though a ministerial resolution.

The resolution includes amendments on requirements and obligations for private sector companies to comply with the WPS when paying salaries.

Dr. Abdulrahman bin Abdulmanan Al Awar, Minister of Human Resources and Emiratisation, specified penalties for companies that do not pay workers’ salaries on time.

The WPS allows companies to pay salaries through banks, money exchange houses and financial institutions that are authorized by MoHRE to provide the service.

Other amendments under the ministerial resolution include a 30-day grace period for employers to transfer their new employees’ salaries via the WPS.

Companies that have not paid their workers’ salaries by the 15th of the month will face a suspension in the MoHRE system from the 17th day of the following month.

The WPS is connected to the Central Bank and links the employee’s labour file number to their employment contract registered with MoHRE.

The system will match the worker’s registered salary level on their work contract. If the salary payment is less than what was registered, the company will get blocked in the MoHRE network.

The company must resolve the block over the delayed or insufficient salary paymen, otherwise it will be subject to fines and a labour court case. ICA/Expat Media


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