UAE Announces Mandatory Employment Registration Under Wage Protection System

The UAE has provided clear guidelines regarding the specific domestic worker occupations that are required to enroll in the Wage Protection System (WPS), in addition to those professions that have the option to register voluntarily. The introduction of the WPS by the UAE Ministry of Human Resources and Emiratisation (MoHRE) aims to establish a secure and reliable employer-domestic worker relationship, facilitating prompt and convenient payment of wages to domestic workers.

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What Is WPS (Wage Protection System) In The UAE?

The Wage Protection System (WPS) was introduced in 2019 through collaboration between the Central Bank of the UAE and the Ministry of Human Resources and Emiratisation (MOHRE). In the United Arab Emirates, the WPS is an electronic mechanism designed to facilitate salary transfers for employees in the private sector. This system enables organizations to disburse wages to their employees through authorized financial entities such as banks and Bureau de Change establishments.

The Ministry of Human Resources and Emiratisation (MOHRE) provides a secure database to private sector companies, enabling them to generate salary files for their employees. To distribute wages to their staff, companies are required to transmit these files to their designated banks. Each file contains essential details regarding the employee’s salary as per their employment contract. This process allows MOHRE to verify and ensure timely payment of all employees’ entitlements.

WPS Goal And Objectives:

The extensive database ensures that wages are paid punctually according to the agreed-upon terms. The wage protection system (WPS) in the UAE encompasses all registered institutions under the Ministry of Human Resources and Emiratisation (MOHRE) across various industries and business sectors.

The primary objectives of the WPS are as follows:

Ensuring the timely payment of employees’ salaries, emphasizing the commitment to their financial security.
Safeguarding the interests of employers by providing a streamlined system that reduces the time and effort required to fulfill salary obligations.
Enhancing job security in the private sector of the UAE and fostering improved relationships while safeguarding the rights of both employees and employers.
Implementing a transparent and user-friendly payment system that is easily accessible and understandable.
The UAE Ministry of Labour maintains an up-to-date and reliable database that regularly incorporates new wage data in the private sector.
Protecting employees and mitigating labor disputes associated with wage-related issues.

Mandatory Registration:

The implementation of the wage protection system (WPS) took effect on April 1. It mandates that all registered facilities at the Ministry must ensure timely payment of their workers’ salaries, either on a monthly basis or as outlined in the employment contract if the duration is less than a month. It is important to adhere to the designated procedures and timelines specified in this directive to fulfill this payment requirement.

As per a Twitter post shared by the Ministry of Human Resources and Emiratisation (MoHRE), it is mandatory to register five domestic worker professions in the Wage Protection System (WPS). These professions are as follows:

Personal healthcare provider
Personal trainer
Private agriculture engineer
Personal tutor
Personal PRO (Public Relations Officer)

Additionally, the MoHRE has provided a list of 14 domestic worker professions where employers have the discretion to decide whether or not to register them in the WPS. These professions include:

Nanny/babysitter
Household shepherd
Housekeeper
Household horse groomer
Housemaid
Physical labor worker
Sailor
Household falcon trainer
Cook
Farmer
Security guard
Gardener
Personal driver
Tamer

In July 2022, the UAE introduced several updates to the WPS rules, aimed at enhancing worker protection and ensuring the timely payment of salaries in the country.

WPS Registration Process:

In the United Arab Emirates (UAE), private-sector employers have a convenient process to register for the Wage Protection System (WPS). The MOHRE official website offers the complete system, allowing employers to create their accounts by providing the company information specified by the Minister. Once registered, employers can access their accounts and update the following details:

Bank account information: Employers can input the relevant bank account details for salary payments.

Employees list with bank/agent details: Employers are required to provide a comprehensive list of employees along with the specific bank or agent associated with each employee.

Bank/agent information for employee accounts: Employers need to specify the respective bank or agent where each employee holds their account.

Salary payment date: Employers must indicate the date on which salaries are scheduled to be paid to their employees.

By completing these steps, employers can effectively manage their wage payments through the WPS in a transparent and efficient manner.

WPS Registration Requirements:

To comply with the wage protection requirements in the UAE, employers should:

Maintain an account with a recognized UAE bank.

Establish a direct contractual agreement with a UAE bank, bureau de change, or authorized financial institution approved by the Central Bank for the purpose of facilitating salary and wage payments.

Consent to adhere to the payment deadlines specified in Ministerial Resolution No. 788 of 2009, as amended by Ministerial Decree 739 of 2016.

Transfer wages to employees at least once a month, within ten days of the payment becoming due. If the employment contract stipulates specific dates or a more frequent payment schedule, the employer must adhere to those terms.

Assume responsibility for any expenses related to the Wage Protection System (WPS), including bank charges and other associated institutional fees.

By fulfilling these obligations, employers ensure compliance with the regulations and guidelines established by the UAE authorities for the proper implementation of the wage protection framework.