UAE: Now, 90% of employees’ total salaries must be paid via Wages Protection System

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UAE
  • Date: 04-Aug-2022
  • Source: Zawya
  • Sector: Economy
  • Country: UAE
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UAE: Now, 90% of employees’ total salaries must be paid via Wages Protection System

At least 90 per cent of an employee’s minimum salary must be paid via the UAE’s Wage Protection System (WPS).

The Ministry of Human Resources and Emiratisation (MoHRE) recently issued Ministerial Resolution No.43 of 2022 - an update to the WPS.

The update includes amendments to specific requirements and clarification on private sector businesses’ obligations to remain compliant with the WPS, clarified Nazar Musa, CEO of PRO Partner Group, a UAE company services provider.

He explained, “One of the main changes from the previous requirements is an increase in the minimum amount of an employee’s salary, which must be paid via the WPS. As per the new amendments, this has been increased from 80 per cent to 90 per cent.”

Dr Abdulrahman bin Abdulmanan Al Awar, Minister of Human Resources and Emiratisation, issued a ministerial resolution last week specifying a series of administrative procedures against establishments that do not pay workers’ salaries on time.

Khaleej Times has reached out to a labour law expert to clarify the new WPS amendments. Here is everything you need to know:

Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay wages via banks, bureaux de change, and financial institutions approved and authorised to provide