Dubai: Since the implementation of the Wages Protection System (WPS) that requires companies to pay salaries electronically, the banking experience of low-income workers in the UAE has been revolutionised.
Special salary cards are now increasingly being used for payroll, particularly by firms that employ workers earning less than Dh3,500 to Dh5,000 a month.
The traditional remuneration process of giving cash was not only costly for the companies, employees did not have the flexibility to access their paycheques and manage their finances effectively. Rasool Hujair, CEO of Majid Al Futtaim Finance, which has recently partnered with People Perfect Advisory to launch a new pay card, explains what this wage payment tool is really about and how it benefits the end users.
Gulf News: What is a payroll card? How different is it from a debit card?
Rasool Hujair: The payroll card concept is a hassle-free, secure and efficient salary disbursement solution for employers with benefits for both the employer and the employee. Debit cards are usually referred to as cards linked to a bank account. The payroll card, on the other hand is an independent solution offering the same benefits, and can be used freely at global cash ATMs or online for web purchases.
To supply a payroll card to an employee, a copy of their passport and visa page and labour card number must be provided. These details are not stored digitally "in" the card, however some programs do have labour card numbers printed directly on the card.
What are the benefits of a payroll card, from the end user's perspective?
The most useful payroll cards can be utilised anywhere where Visa or MasterCard are accepted, and can be used at cash ATMs in the UAE (on the UAE Switch) and internationally with safe, secure transactions. Visa- or MasterCard-enabled payroll cards are all PIN protected when used on an ATM.
They can (also) be used for payment in shops and for online purchases. Not only are they an easy-to-use replacement for cash purchases, payroll cards can be managed online via a dedicated system, and offer a secure alternative to getting paid in cash with a no-fuss direct deposit method.
Are there service charges levied on the payroll card if the worker uses it to shop, withdraw money or send funds abroad?
Payroll cards are cost-free for the end user, or employer. This is also a mandate by the Central Bank that employees are to rightly access their funds at no charge. Typically there are no hidden fees with minimum balance requirements. Using the payroll card is free for shop purchases, however there will be nominal fees levied for ATM usage depending on the provider in addition to fees for personal transfers. Payroll card service fees are covered in the agreement by the employer and cardholder.
Is the payroll card only for blue collar workers?
The payroll card is ideal for any employee or worker in the UAE with a monthly salary of less than Dh3,500 to Dh5,000 per month.
How has the payroll card revolutionised the banking experience of low-income workers in the UAE?
The introduction of the payroll card in the UAE has resulted in significant changes in consumer spending habits from the lower-income earning population. There is more confidence in making online purchases, more conveniences in accessing funds and the flexibility to pay for purchases as you would a credit card.
Keep pin number safe
People Perfect Advisory, a human resource consulting and outsourcing firm in the region, has been managing payroll of companies across the UAE and in South Asia since July 2011. Its newly-launched Perfect Pay card promises to improve payroll efficiency, safety and security. The firm offers some tips for workers on how to effectively use their payroll cards:
- Withdraw only what is needed and leave the rest as it is safe and secure
- Use pay card to shop wherever it can be used as it is better than carrying cash
- Memorise the PIN and don't share it with anyone
- If your card is lost or stolen, immediately notify the customer support
