UAE | Employment

Ministry to monitor salary payment

The electronic wage payment system will make it easier for the labour ministry to check on companies that do not pay workers on time, said the minister on Wednesday.

  • By Rayeesa Absal, Staff Reporter
  • Published: 23:14 December 5, 2007
  • Gulf News

Abu Dhabi: The electronic wage payment system will make it easier for the labour ministry to check on companies that do not pay workers on time, said the minister on Wednesday.

"With the implementation of the electronic wage payment system by January, the ministry will be able to instantly check the status of payment of salaries to employees of the companies functioning in the country. This will ensure the timely payment of salaries. However, at the moment, we have no plans of fixing the minimum wage for labourers," said Dr Ali Bin Abdullah Al Ka'abi, the Labour Minister.

"With the new system, it will make it easier for the ministry to check on companies that do not pay on time. These companies will be flagged and repeat offences will result in stringent measures against the company," the minister said.

Cabinet decision

He was speaking following the signing of a Memorandum of Understanding with a US-based technology company called InfoSpan Gulf for electronic salary disbursement.

Similar MoU's were signed with companies like Workers Equity, UAE Exchange, Islamic Finance Company, Western Union, and Empost, by the ministry following the cabinets decision in June to make all salary payments electronic.

The "SpanCash" service offered by InfoSpan will enable employees to receive their salary on time, easily and securely via banking channels and at the same time facilitates cost-effective international remittances and payment of utility bills.

The ministry has made it clear that workers should not be charged to withdraw their salaries.

Detailing the benefits of the system, Al Ka'abi said, "The company will pay initially for switching to the electronic payment system but in the long run they will save money by cutting down on accounting expenses and cash handling risks." Urging companies to complete the formalities for the electronic wage payment system, the minister said that many companies wait until the last moment to get things done resulting in fines.

Those companies that do not switch to the system will not be issued employment visas, he added.

Farooq Bajwa, Chairman of Infospan Inc, said: "SpanCash has been engineered to do exactly what Ministry of Labour requires from employers who are managing expatriate workers. Employers will be able to credit salaries to workers' accounts automatically."

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