UAE | General
Many companies yet to register for electronic payment of wages
Most companies have not yet registered for the electronic payment of salaries, said Labour Ministry officials.
- By Rayeesa Absal, Staff Reporter
- Published: 18:21 January 7, 2008
Abu Dhabi: Most companies have not yet registered for the electronic payment of salaries, said Labour Ministry officials.
Hailed as a major achievement of the Ministry of Labour (MoL), the electronic salary payment system was approved by the Cabinet in June 2007 and companies were instructed to make all salary payments electronically by January 1.
Companies could either open bank accounts for their employees or tie up with one of the companies offering salary disbursement services which are authorised by the ministry.
Though it is already past the January 1 deadline, not many have fallen in line with the ministry's instructions, Gulf News has learnt.
“Very few companies have complied with the decision as yet,'' an official at the ministry said.
“Some of the large companies already have bank accounts for their employees while some others have bank accounts for part of their employees. All these information needs to be collated to get the exact number of errant firms, which we are looking into,'' he said.
“Awareness about the ministry rule and benefits of outsourcing salary payments is quite low among some companies. It is only after we produce the ministry's circular and newspapers clippings do they understand the urgency of following the ministry's rules,'' said Faisal Al Nuaimi, the Director of Sales and Retail Operations of Emirates Post told Gulf News.
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