GLOBAL PAYROLL MAGAZINE
33
The U.A.E.’s Wage Protection System (“WPS”) has proved to be a game changer for the U.A.E.’s payroll industry. This article will cover the introduction of WPS in the UAE, and examine recent reforms to the system, along with anticipated future trends. What is WPS? First introduced via Ministerial Decree No.788/2009 (“Decree No.788/2009” ), WPS came about as a product of collaboration between the Ministry of Human Resources and Emiratization (“MOHRE”) and the Central Bank of the U.A.E. (“CBUAE”) . While the system was originally mandated only for onshore companies, Jebel Ali Freezone (“JAFZA”) was the first free zone to opt in to the system in 2012. WPS acts as an electronic wage transfer system that facilitates the payment of employee salaries, in an effort to ensure they are paid in an accurate and timely manner. The system requires companies to transfer employee salaries through WPS agents, who are financial institutions authorized by CBUAE. After companies submit a salary information file (“SIF” )
orms and The UAE’s on System
By Thenji Moyo and Dilini Loku
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