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Wage Protection System takes effect


08/31/2009 11:15 PM

Dubai: The first phase of implementing the Wage Protection System (WPS), an electronic salary transfer system which aims to ensure that workers are paid on time, will begin today.

More than 2.1 million workers in 4,100 companies will be included in the first phase. These companies with 100 employees or above will be given until November 30 to enrol in the WPS.

Humaid Bin Deemas, Acting Director-General of the Ministry of Labour, called on companies not to wait until the deadline to enrol in the system.

"Companies should start paying the September salary through the new system and not wait until the deadline finishes," said Bin Deemas.

"I also urge companies to contact the ministry if they face any difficulties with the new system."

The ministry has also issued a guide booklet on the system published both in English and Arabic.

It is also conducting seminars to orient companies about WPS.

The Ministry of Labour, in cooperation with the Central Bank, launched the system in May following a January decision by the Cabinet which stipulated that all companies should pay workers through banks.

The directive was not effectively implemented as companies cited difficulties in finding banks that are willing to open accounts for low income workers. The WPS will enable the ministry to automatically check if any company is defaulting on salaries or making unlawful deductions from the salaries through online notifications.

Financial institutions, which the workers' salaries are being transferred to, will feed these details into the WPS.

 
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