Wage Protection System UAE

Wage Protection System UAE

The Wage Protection System (WPS) UAE is an electronic salary transfer system that enables organizations to pay employees' salaries through financial institutions, such as banks and bureaux de change, which have been approved and permitted to offer the service.

In order to provide the Ministry with a database on the process of private sector employers paying salaries to the worker and the compliance of institutions with the system, the Central Bank of the United Arab Emirates (UAE) created the WPS technology.

Salary transfer through wps

The salaries of the workers are expected to be transferred via the Wage Protection System in accordance with the dates outlined in the legislation, under Ministerial Resolution 788 of 2009. According to the law, in order to apply for the WPS, the firm must be registered with the Ministry of Labor.

The WPS system in uae tackles the issue of non- or delayed payment of salaries to (foreign) workers by allowing transparency in salary payments to workers, especially foreign workers. It was progressively implemented beginning in 2009 for employees whose work permits were issued by the ministry of labor. Of the 4.6 million migrant workers registered with the Ministry of Labor as of October 2015, roughly 3.5 million foreign employees benefit from the WPS.

The firm will not be granted fresh work permits until all overdue payments have been made if it fails to enroll in the WPS with the Ministry or fails to transfer the salaries on time as required by law. According to Ministerial Resolution No. 788 of 2009, companies that delay paying wages for more than a month after the due date, along with all the institutions owned by the owner of the violating institution, will be denied the right to obtain new work permits, and anyone found guilty of a violation will be taken to court.

The WPS system in uae was the first of its type in the Arab world and showcases the UAE's innovative leadership in the area in addressing issues related to the working conditions of foreign employees. During the third ministerial conference of the Abu Dhabi Dialogue, a summary of the method was favorably welcomed, and several other GCC nations are currently replicating it.

Step by step guide to Preparation and submission of a SIF in WPS UAE

salary payment through WPS

Salary information file creation:

The following 5 procedures must be followed in order to create a valid Salary Information File (SIF) that can be sent to the bank for processing via WPS:

         i.            Opening a new salary file is the first step (Excel)

       ii.            Inputting the necessary employee salary information

      iii.            providing the necessary Employer information

     iv.            Saving the file as a.CSV file

       v.            The file is renamed as a SIF file.

Below is a detailed explanation of these actions.

I. Open a fresh Excel file.

II: Enter all employee record details row-by-row in the following order:

In all rows, type "EDR" in column A.
Enter the 14-digit Person ID number from the Ministry of Labor in Column B. The Employee Labor Cards are printed with this information. If the given number is shorter than 14 digits, the field in the file has to have zeros prefixed to get the count up to 14.

Enter the Agent ID in Column C. This is the nine-digit routing code sent to the bank or agent where the employee's account is stored.

The employee's account number or salary card number from the bank where the salary is to be credited should be entered in Column D. must not exceed 16 characters.

Enter the PAY START DATE in Column E. The format should be "YYYY-MM-DD." For instance, the PAY START DATE stated will be 2009-10-01 if the pay period is for the month of October 2009.

Provide the PAY END DATE in Column F. The format should be "YYYY-MM-DD." For instance, the specified PAY START DATE will be 2009-10-31 if the pay period is for the month of October 2009.

Column G: Indicate how many days the salary is being paid for. For instance, the amount entered will be "31" if the pay is being paid for the entire month of October, which contains 31 days in total.

Enter the FIXED INCOME AMOUNT that will be paid to the employee in Column H. All fixed payments, such as Basic Pay, HRA, and Transportation, are included in this. The sum should be entered without the symbol "," and either with two decimals or without, for example, 1200.00 or 800. Send 0.00 if this component does not contribute.

 Enter the VARIABLE INCOME AMOUNT that will be paid to the employee in Column I. Examples include bonuses, overtime, and incentives. The sum should be entered without the symbol "," and either with two decimals or without, for example, 1200.00 or 800. Send 0.00 if this component does not contribute.

III - The last row should include information about the employer known as the SALARY CONTROL RECORD (SCR). Please take note that this should be done at the very end, after the employee salary information have been completed. The fields should be filled out in the following sequence:

Preparation and submission of a SIF in WPS

 Salary Control Record file Creation:

Column A: Enter "SCR."

Enter the company's 13-digit Employer Unique ID (Establishment Number) in Column B of the Ministry of Labour database. If the length is less than the 13-digit maximum stated length, this field will need to be padded with leading zeros. This field is checked against the WPS Master database.

Enter the employer's bank code in Column C. The Employer's Bank, where the corporate account is housed, has been given this 9-digit routing code.

Enter the file creation date in Column D. Must follow the YYYY-MM-DD format. For instance, if the employer created the file on October 25, 2009, the date would be 2009-10-25.

Enter the file creation time in Column E. Must follow the HHMM format. For instance, if the employer prepares the documentation at 4:00 pm and 30 minutes, the time stated will be 1630.

Enter the salary month in Column F. Must follow the MMYYYY format. For instance, the month indicated will be 102009 if the payment is being made for the month of October.

Enter the EDR count in Column G. The whole workforce for which the wage is being paid is represented by this number.

Enter the TOTAL SALARY AMOUNT paid to the employees in Column H. The sum should be entered without the comma and with or without two decimal places, for example, $12,000.00 or $80,000. It will be verified to match the total of all Fixed and Variable components listed in each EDR entry in the file.

Enter the payment currency in Column I. This should always be typed in as AED.

Column J: If appropriate, provide the Employer Reference Number. Only if the employer has a personal file identification on their end should they fill out this optional section. The field can be left empty if not applicable.

Saving the file as a.CSV file is step four.

Once the file is ready, please save it using the guidelines below:

- Select "Save As"

- When saving a file, use the following format: "EMPLOYER UNIQUE ID FILE CREATION DATE FILE CREATION TIME."


Step V: Change the file's original "CSV" name to "SIF." E.g. 9656258091025163000.sif.

Your salary file, or SIF file, has to be delivered to the bank for WPS processing.