“What is WPS in the UAE?”
The Wage Protection System (WPS) was launched in the UAE in 2009, but many still wonder about it. What does it do and how does it protect an OFW’s salary in the UAE?
What is WPS in the UAE?
From 2009, every employer has to pay their employees through the WPS. The WPS monitors the payment of workers’ salaries in the UAE, ensuring that wages are paid according to employment contracts and on time.
The system was established due to cases where employers failed to pay correct wages, delayed payments, or used offshore accounts to avoid fulfilling their financial obligations. In some instances, companies even resorted to using illegal funds to cover these payments.
How WPS works
Firstly, an employer must upload their Salary Information Files (SIF) form to the Ministry of Human Resources and Emiratisation (MoHRE) as well as the Central Bank of UAE to confirm the amount of salary. The file includes other information, such as basic salary, deductions, allowances, overtime payments, and additional bonuses.
Afterward, the MoHRE will check the WPS you sent. Once approved, the employer will immediately release the money to your bank account.
Fines and penalties
OFWs must know that if their companies deduct from their salaries without a valid reason, they can complain to MoHRE and other authorities. Their employers will then face company fines and penalties, but what are they?
If the wages are delayed, the penalties apply:
- The company will not receive any work permits starting from the 17th day after the due date.
- Companies with over 50 employees will face an investigation and receive warnings. After 45 days, the case will be taken to the competent authorities at the federal and local levels for legal action.
- For companies that repeat the same violation within six months, an administrative fine will be imposed and the establishment will be reclassified to Category 3.
How WPS impacts OFWs
The Migrant Workers Office (MWO) in Dubai and the Northern Emirates requires that OFWs working as domestic workers in the UAE earn a minimum salary of AED 1,500 per month before their MoHRE contracts can be verified. This verification is crucial for securing an Overseas Employment Certificate (OEC), which serves as proof of legal employment abroad.
Without an OEC, Filipino workers may not be permitted to return to Dubai for work after visiting the Philippines, as it must be presented to Philippine immigration before departure.
If one’s employment contract has less than AED 1,500 basic pay, they must request their employer to alter the contract at any Tadbeer center.
Suspecting that you’re not receiving your salary through WPS? If you have concerns or complaints about delayed or unpaid salaries, you may contact MoHRE or register a salary complaint.
With the UAE’s labor laws, you can secure a safe and fair working environment. However, if you accept a job that does not comply with MoHRE’s regulations, it’s important to hold your employer accountable. Otherwise, you risk falling into scams or unfair labor practices.
