UAE | Employment

No more salaries in cash for workers from January

Next January all salary payments must be deposited electronically by companies in the country.

  • By Rayeesa Absal, Staff Reporter
  • Published: 23:05 October 7, 2007
  • Gulf News

  • Dr Al Ka'abi after signing a memorandum of understanding with Al Gaith to start implementing the Daman and Aman programme. Automated teller machines (ATMs) will be installed at workers' housing compounds to help labourers draw their salaries.
  • Image Credit: WAM

Abu Dhabi: Next January all salary payments must be deposited electronically by companies in the country.

The Electronic Wage Payment System being put in place by the Ministry of Labour brings to an end cash payments of salaries. This will ensure that monthly wages are paid to all employees without fail and thus benefit the labour force.

The ministry has established tie-ups with finance houses that will collect the wages from the companies and place them in the proper accounts.

Facilitating hassle-free salary disbursement, the system allows the ministry to have real time access to information regarding payments of salaries.

To pave the way for the shift from cash to electronic payments, the ministry signed a Memorandum of Understanding (MoU) with the Islamic Finance Company (IFC) yesterday to start implementing the Daman and Aman programme.

Dr Ali Bin Abdullah Al Ka'abi, the Labour Minister, said that under a Cabinet decision, from January 1, 2008, every company must pay its salaries through the banking system. He warned that the ministry will stop issuing employment visas to companies that fail to comply with the electronic wage payments.

More MoUs signed

Similar MoUs were signed with UAE Exchange, Western Union, Workers Equity and Empost to ensure that all salary payments are electronic.

The minister added that more banks and institutions are being considered.

Ali Bin Hamel Al Gaith, member of the IFC Board of Directors, said: "The IFC owns a wide range of services as well as a large database and resources, and developed systems to position itself as a partner in this cooperation.

"We seek through this agreement to put all the services and resources available to support the goals and vision of the ministry."

According to the agreement, the IFC will follow up and organise the payroll, submit social audits for the facility explaining the companies' commercial and managerial performance, and its abidance by the UAE labour laws.

The IFC will also pay the salaries of labourers by installing ATM units in labour accommodations and will also send mobile units equipped with ATM machines to the sites.

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