Wage Protection System for Jafza companies
The Wage Protection System (WPS) has been developed by the Central Bank of the UAE allowing Jafza based businesses to create a database that records wage payments in the private sector to guarantee timely and full payment of the agreed-upon wages.
The Wages Protection System (WPS) was implemented at the Central Bank of the UAE (CBUAE) to meet the desired objectives of the Ministry of Labour (LRA). The objective of UAEWPS is to provide a safe, secure, efficient and robust mechanism to streamline the timely payment of wages to employees by their employers. The UAEWPS has been adopted by other authorities in the UAE
How does it work?
WPS is an electronic salary transfer system that allows institutions to pay employees’ wages via banks, exchange houses and financial institutions that are approved and authorised to provide the service by the UAE Central Bank. This service has now been mandated in Jafza in order to protect the basic rights of both Employees and Employers.
Are Jafza companies required to comply?
Yes, all businesses registered with Jafza are required to comply with the WPS system of the United Arab Emirates. Jafza has implemented the need to comply with UAEWPS in 2012. With this initiative, Jafza and the Central Bank has streamlined and guaranteed the timely payment of wages to free zone employees by their employers and effectively monitor the process to ensure transparency and security.
You can find more information about this on our Dubai Trade portal – https://www.dubaitrade.ae/open-services/jafza/wage-protection-system