New UAE Salary Rule: Wage Protection System Becomes Mandatory for Additional Worker Categories
The Ministry of Human Resources and Emiratisation mandates WPS for select domestic worker professions, reinforcing wage security and compliance.
Abu Dhabi: The Ministry of Human Resources and Emiratisation (MOHRE) has announced an expansion of the Wage Protection System (WPS) to cover additional domestic worker categories, as detailed on its official website.
The WPS, an electronic system endorsed by the Ministry, facilitates wage payments through banks, exchange houses, and financial institutions authorized by the Central Bank of the UAE.
According to Article 15 of Federal Decree-Law No. (9) of 2022, employers are required to disburse monthly wages in UAE dirhams within ten working days from the due date.
The introduction of WPS is intended to reinforce the rights of employers and the timely compensation of domestic workers.
Key benefits of the WPS include:
- Verification of wage payments by employers.
- Streamlined transfer processes for wages from employer to domestic worker.
- Assurance of timely wage disbursements.
- Fostering stable employer-worker relationships.
Methods of wage payments accepted under the WPS encompass:
- Cash transfers made through banks, exchange houses, or approved financial institutions as authorized by the UAE Central Bank and contracted by the employer.
- Electronic transfers via mobile applications offered by these banks and financial entities.
To register workers under the WPS, employers must provide:
- The Emirates ID of both the employer and the domestic worker.
- Registration with a WPS agent authorized by the Central Bank.
MOHRE is actively ensuring compliance through regular notifications to educate employers about their obligations regarding wage registrations under the WPS.
Employers who do not adhere to Ministerial Resolution No. (675) of 2022 and Executive Regulation No. (106) of 2022 will face administrative penalties.
Enforcement measures include the possibility of suspending an employer's file if wages remain unpaid for two months beyond their due date.
Employers are classified as delinquent in wage payments if they fail to process wages through the WPS within one month from the due date, with wages deemed due on the first day of the month following that specified in the employment contract.
The WPS covers all occupations specified under the Domestic Workers Law, mandating registration and wage processing for all employers.
Effective April 1, the system will be compulsory for five specific professions:
- Private Trainer
- Private Teacher
- Home Caregiver
- Private Representative
- Private Agricultural Engineer
Other professions that may utilize the WPS include:
- Housekeeper
- Sailor
- Nanny
- Cook
- Guard
- Private Driver
- Shepherd
- Stableman
- Camel Trainer
- Falconer
- Laborer
- Maid
- Farmer
- Gardener
Certain exemptions apply, allowing for a delay in wage transfers through the WPS for:
- Domestic workers engaged in unresolved labor disputes who are no longer in the employ of the stated employer.
- Those with an active ‘absconding’ report against them.
- New domestic workers in their initial 30 days of employment.
The WPS, an electronic system endorsed by the Ministry, facilitates wage payments through banks, exchange houses, and financial institutions authorized by the Central Bank of the UAE.
According to Article 15 of Federal Decree-Law No. (9) of 2022, employers are required to disburse monthly wages in UAE dirhams within ten working days from the due date.
The introduction of WPS is intended to reinforce the rights of employers and the timely compensation of domestic workers.
Key benefits of the WPS include:
- Verification of wage payments by employers.
- Streamlined transfer processes for wages from employer to domestic worker.
- Assurance of timely wage disbursements.
- Fostering stable employer-worker relationships.
Methods of wage payments accepted under the WPS encompass:
- Cash transfers made through banks, exchange houses, or approved financial institutions as authorized by the UAE Central Bank and contracted by the employer.
- Electronic transfers via mobile applications offered by these banks and financial entities.
To register workers under the WPS, employers must provide:
- The Emirates ID of both the employer and the domestic worker.
- Registration with a WPS agent authorized by the Central Bank.
MOHRE is actively ensuring compliance through regular notifications to educate employers about their obligations regarding wage registrations under the WPS.
Employers who do not adhere to Ministerial Resolution No. (675) of 2022 and Executive Regulation No. (106) of 2022 will face administrative penalties.
Enforcement measures include the possibility of suspending an employer's file if wages remain unpaid for two months beyond their due date.
Employers are classified as delinquent in wage payments if they fail to process wages through the WPS within one month from the due date, with wages deemed due on the first day of the month following that specified in the employment contract.
The WPS covers all occupations specified under the Domestic Workers Law, mandating registration and wage processing for all employers.
Effective April 1, the system will be compulsory for five specific professions:
- Private Trainer
- Private Teacher
- Home Caregiver
- Private Representative
- Private Agricultural Engineer
Other professions that may utilize the WPS include:
- Housekeeper
- Sailor
- Nanny
- Cook
- Guard
- Private Driver
- Shepherd
- Stableman
- Camel Trainer
- Falconer
- Laborer
- Maid
- Farmer
- Gardener
Certain exemptions apply, allowing for a delay in wage transfers through the WPS for:
- Domestic workers engaged in unresolved labor disputes who are no longer in the employ of the stated employer.
- Those with an active ‘absconding’ report against them.
- New domestic workers in their initial 30 days of employment.
Translation:
Translated by AI
