The UAE Wage Protection System (WPS) Explained

03 Mar, 2015 - UAE Life & Economy


The Wage Protection System (WPS) is an initiative by the UAE government to ensure employees are paid in full and on time. Upon formation, all onshore companies are required to create an account with the Ministry of Labour that records and regulates the issuing of contracts and visas to employees.

The WPS process is not particularly confusing or inconvenient. It simply acts as an interface between the company’s bank account and those of its employees and verifies that each worker is paid in full according to the salary details registered on their official Ministry of Labour contracts. In the case of staff without bank accounts, a special ATM / debit card can be used for the salary to be credited to.

If the WPS system is not adhered to, the company’s account with the Ministry of Labour will be suspended; it will no longer be able to hire staff, issue visas etc.

The protection of workers’ rights, in this instance ensuring prompt & full payment of all staff, is just one more reason why the UAE can be considered as a viable option for international expansion.

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