WPS meaning in salary
Wages Protection System
What is WPS?
WPS stands for the Wages Protection System. The Wages Protection System is a system of electronic salary transfer that makes sure companies pay their employees through a WPS agent such as a bank, exchange house, financial institution or company like Edenred to guarantee timely and accurate payment of wages to your employees.
Which companies are required to comply with WPS regulations?
All companies in the UAE registered with the Ministry of Human Resources and Emiratization (MOHRE) across all sectors and industries as well as companies in certain free zones such as Jebel Ali Freezone (JAFZA) and Dubai Multi Commodities Centre (DMCC) must comply with the WPS regulations.
All companies registered under the following authorities:
The Wage Protection System (WPS) in the UAE has several benefits:
- Promotes transparency and compliance with labor laws.
- Ensures fair treatment of employees.
- Streamlines payroll processes and reduces disputes between parties.
- Upholds workers’ rights and ensures a harmonious workplace environment.
- Attracts talented workers from around the world
Introduction of Wage Protection System (WPS) in the DMCC Free Zone
The DMCC Free Zone, known as the Dubai Multi Commodities Centre Free Zone, in the United Arab Emirates, has recently introduced a Wage Protection System as part of ongoing efforts to improve fair labour practices and protect the rights of employees. The WPS developed by the Central Bank of the UAE, also known as CBUAE, allows the DMCC Free Zone to record wage payments to guarantee that all workers are paid accurately and on time. The implementation of WPS in the DMCC Free Zone is a significant step towards promoting economic stability and protecting the rights of employees. Learning more about this important initiative and its implications for businesses can help you run your business successfully. Even if you are not familiar with any of these methods, professionals like CDA can help you get your business in line. By understanding the importance of WPS and staying compliant with regulations, you can avoid penalties and maintain a positive reputation in the industry. Consulting with experts like CDA can ensure that your business is following the necessary procedures for salary transfers in the DMCC Free Zone.
How Does the WPS Work?
The WPS in the DMCC Free Zone operated by ensuring that all the employers pay their employees through electronic means. Employers must register their employee details and salary information in the WPS platform. You might be wondering how to do that, follow the simple steps below to register your employees for salary transfer through the WPS:
Step 1: Get the list of employees with and without a bank account.
Step 2: Log in to the portal of DMCC Member
Step 3: Go to “My Reports” select “WPS Salary Report” and provide all the required details for each employee to create a salary report.
Step 4: Save the softcopy of the final report.
Step 5: If the employee already has a bank account, approach the bank to request the salary file creation per employee.
or
If the employee doesn’t have an existing bank account, approach the exchange house to request the salary file creation per employee.
Step 6: Once the file is created from the bank or exchange house, you are all set to transfer your salary through WPS. The authorities will be able to monitor the salary transfer and any delays to it.
In cases of discrepancies or non-compliance, penalties may be imposed. This strict monitoring mechanism guarantees transparency, accuracy, and timely payment of wages, promoting a fair and honest work environment in the DMCC Free Zone.
AHG-Dubai is ready to embrace the new opportunities and challenges presented by the new corporate tax law to help guide our clients’ businesses through the new phase.
