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UAE | Dubai Payroll Outsourcing Alert

UAE | Dubai WPS Compliance Alert

Mercans’ UAE & Dubai Payroll Outsourcing solutions guarantee compliance.

UAE & Dubai payroll outsourcing leader Mercans has issued the following Wage Protection System (WPS) compliance-related alert to the companies operating in the United Arab Emirates. Mercans offers legally compliant payroll outsourcing and PEO solutions in the UAE, that ensure full compliance with the complex WPS and payroll processing regulations. Consider Mercans’ UAE & Dubai payroll outsourcing solutions for the guaranteed fulfillment of all legal requirements established by the UAE Ministry of Labor.

WPS Compliance Actively Enforced by the Ministry of Labor in the United Arab Emirates

The UAE Ministry of Labor (MOL) introduced WPS in 2009. Currently, all companies operating outside the free-zones or in Jabal Ali Free Zone are required to follow and comply with the WPS requirements in order to avoid penalties by the MOL. The below Frequently Asked Questions, prepared by Mercans’ UAE & Dubai payroll outsourcing specialists, will provide you the must-know information regarding the WPS process in the UAE and Dubai.

What is the Wage Protection System (WPS)?

The WPS regulations were introduced to ensure, that all employers pay their employees on-time and fully. The WPS process allows the MOL to centrally and electronically monitor in real time the salary payments of the participating employers and take enforcement actions if the salary payments are not made in accordance with the Labor Law and employment agreements.

What is required for the WPS registration?

The Employers, that are subject to WPS, are required to process all of their salary payments through the WPS system. For this, the employer has to complete the following actions:

How does the WPS process work?

The objective of the WPS process is to monitor the salary payments by the employers and ensure, that all employees receive their full salaries. In order to accomplish this objective, the employers are required to comply with the following WPS processing steps on a monthly basis:

How is the WPS information used by the MOL?

The MOL records all salary payments made by employers and compares these amounts with the information provided by the employers in the employment agreements provided to the MOL. During this process the MOL completes the following verifications:

What are the common issues with the WPS payments?

There are a number of common issues, which may lead to inadvertent non-compliance with the WPS reporting requirements. Some of the most common issues have been summarized below:

Employers should ensure that they avoid these common pitfalls when processing salaries through the WPS process.

What are the consequences of the non-compliance with the WPS procedures?

The MOL is actively monitoring and enforcing the compliance with the WPS processes. In the case of non-compliance, the employer’s MOL services will be suspended until the company processes at least three sequential WPS files.

Please contact Mercans’ UAE and Dubai payroll outsourcing specialists at [email protected] for additional information regarding the WPS compliance requirements or to discuss Mercans’ UAE and Dubai payroll outsourcing solutions. Mercans’ UAE and Dubai payroll outsourcing services are the best approach for legally compliant payroll operations in the UAE.

 

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