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DMCC Update – Mandatory WPS Registration Announcement
A new regulatory update has been announced by Dubai Multi Commodities Centre (DMCC) where all employees with an active Employment Visa or Personal Identity Card (PIC) must be registered in the Wage Protection System (WPS) before 15 February 2023.
The legislation behind the WPS in the United Arab Emirates (UAE) is the Ministerial Resolution No. 765 of 2010, issued by the Ministry of Human Resources and Emiratisation (MOHRE).
This initiative aims to enable a dynamic economy that guarantees the timely and complete payment of the agreed-upon wages to safeguard the interest of the workers and attract talents across the globe. Currently, WPS registration is applicable to the private sector under the jurisdiction of the MOHRE and Jebel Ali Free Zone Authority (JAFZA). DMCC will be the next jurisdiction enacting the WPS legislation.
Failure to comply with the authority’s requirements will result in penalties ranging from AED 5,000 to AED 50,000.
FREQUENTLY ASKED QUESTIONS
WHAT IS WAGE PROTECTION SYSTEM (WPS)?
The Wage Protection System (WPS) is an electronic salary transfer system that requires all companies to pay workers via approved banks, UAE exchanges, or registered financial institutions. Developed by the Central Bank of the UAE, the system allows the Ministry of Human Resources and Emiratisation (MOHRE) to create a database that records wage payments in the private sector to guarantee the full and timely payment of salaries.
WHAT DO DUBAI MULTI COMMODITIES CENTRE (DMCC) COMPANIES NEED TO DO?
All Dubai Multi Commodities Centre (DMCC) companies must use a local bank or money exchange/ financial institution that has been authorized and approved by the UAE Central Bank to set up the Wage Protection System (WPS) system. Businesses must then make sure that they process workers’ payroll and salaries through the WPS system each month.
WHAT ARE THE ADVANTAGES AND KEY FEATURES OF WAGE PROTECTION SYSTEM (WPS)?
- It safeguards the workers’ wage and the payment of stipulated salaries.
- It provides protective and proactive measures to avoid labour disputes which involve workers.
- It offers advanced solutions that assist companies in protecting their own rights and minimizing the hassles related to employee payment.
- It enhances transparency and competitiveness in work relationships.
- It will ensure that Dubai Multi Commodities Centre (DMCC) is updated on the wages data.
Our team of experts can assist you with the complete requirements to ensure that your company is fully compliant with this new DMCC mandate, contact firstname.lastname@example.org or call UAE +971 4 878 6240.