The WPS became a reality in July, 2009 with the Ministerial Decree No. 788.
It was an innovation of the Ministry of Human Resources and Emiratisation (MOHRE) in association with the Central Bank of UAE. The rules and regulations guiding its operations were further strengthened by the Ministerial Decree No. 739 of 2016. On September 1, 2019, the MOHRE issued further regulations to update the WPS regime.
Basically, the WPS is an electronic wages transfer system that oversees the payment of workers’ salaries in the UAE. It ensures that UAE workers are paid the right wages or salaries (based on their employment contracts) and in a timely fashion.
The WPS has an electronic database where UAE companies must upload their Salary Information Files (more on this later) for the MOHRE and the Central Bank of UAE to confirm and validate every detail before giving permission for the onward transfer of money to employees.
Such a system became necessary due to the unscrupulous actions of some employers in refusing to pay the correct wages or salaries, delaying such payments, using offshore accounts as a way to avoid required payments, or using funds from illegal sources.
These unfair activities often led to unending labour and industrial disputes and a breakdown of trust between employers and employees.
To solve these problems, the MOHRE introduced the WPS and mandated all companies in the UAE and the Jebel Ali Free Zone (JAFZA) to adopt it (other free zones and some royal or UAE government-owned companies are exempt).
By October, 2015, 3.5 million of the 4.6 million migrant workers in the UAE were already benefiting from the WPS, according to the International Labor Organization (ILO).
By ensuring that UAE companies pay agreed-upon wages in a timely fashion, the WPS ensures that cases of labour and industrial disputes are minimised. The system upholds workers’ rights and ensures transparency in the employer-employee relationship.
However, employers also benefit from it. For one, the automation and streamlining of their payroll process saves time and money. Furthermore, in the event that a worker is wrongly claiming to be underpaid, the WPS records can be used as legal proof for employers.
WPS ensures that companies pay wages on time, significantly reducing the occurrence of labor and industrial disputes by upholding workers’ rights and maintaining transparency in the employer-employee relationship.
In cases where a worker claims to be underpaid, WPS records provide employers with legal documentation that can serve as evidence to refute false claims, thereby safeguarding the company’s interests.
By automating payroll management, WPS helps employers save time and reduce administrative costs, leading to a more efficient and cost-effective payroll process.
The system ensures that workers receive their agreed-upon wages without delay, fostering trust and satisfaction among employees while protecting their rights.
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I highly recommend PlanC Network for WPS management. They handle everything professionally, saving us time and ensuring all our employees are paid accurately and on time.
Client
Using PlanC Network's WPS services has made our payroll process so much more efficient. They took care of everything, ensuring we remain compliant and on schedule.
We were struggling with WPS compliance before working with Plan C Network. Their team made it easy to understand and implement, and now our payroll runs smoothly every month.
Plan C Network has been a lifesaver for our company. Their WPS services are top-notch, and their expertise ensured we never missed a payment deadline
We offer a complete WPS service, from setting up the system to processing payroll, ensuring seamless salary transfers for your business.
Our team is well-versed in UAE labor laws and WPS regulations, ensuring your business remains compliant at all times.
We streamline your payroll process, saving you time and effort while minimizing the risk of errors.
With advanced security measures, we protect your data, ensuring that all salary information is handled with the utmost confidentiality.
All companies registered with the Ministry of Human Resources and Emiratisation (MOHRE) are required to use the WPS to pay their employees' salaries.
The WPS ensures legal compliance, reduces the risk of penalties, improves transparency, and streamlines payroll management, saving you time and effort.
Yes, all companies registered with the MOHRE must process their employees' salaries through the WPS on a monthly basis.
Non-compliance with WPS regulations can result in penalties, fines, or even suspension of your company's activities by the MOHRE.
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