Picture for illustrative purposes only. ARCHIVE

The Ministry of Human Resources and Emiratisation (MoHRE) has issued a stern warning to companies in the UAE regarding strict adherence to the Wage Protection System (WPS). The WPS, introduced to ensure the timely and full payment of wages to employees, mandates that companies pay their staff through approved financial institutions. This system is designed to protect the rights of workers and enhance transparency within the labor market. MoHRE officials emphasized that companies found violating WPS regulations would face severe penalties, including fines and possible legal action. The ministry highlighted that the protection of workers' rights is a top priority and that non-compliance undermines the integrity of the UAE's labor market. As part of the enforcement measures, the MoHRE plans to increase inspections and audits to ensure companies are adhering to the WPS guidelines. In a recent statement, a MoHRE spokesperson urged all employers to review their WPS compliance immediately. The MoHRE also encouraged employees to report any instances of non-payment or delays in wage.

How does WPS work?

All employers registered with MoHRE must subscribe to the WPS and pay the wages to their employees through it. Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service.

When should employers pay salaries?

The employee's salaries must be paid on the first day of the month following the expiry of the period for which the wages are specified in the employment contract. If the period is not specified in the employment contract, the employee must be paid at least once a month. The employer is in default of paying the wage if it is not paid within the first 15 days after the due date, unless a shorter period has been agreed in the employment contract. ICA/Expat Media
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