Employers now have option to pay UAE domestic workers’ wages through banks, exchange houses

Dubai: Employers of domestic workers in the UAE can now pay the wages through banks, exchange offices and approved financial institutes that are authorised by the UAE Central Bank. According to the Ministry of Human Resources and Emiratisation (MoHRE), from January 27, 2022, employers will have the option to implement Wage Protection System (WPS) for domestic workers.

There will be “Optional implementation of the domestic workers’ wage protection system allowing employers to pay these workers’ wages electronically through banks, exchange offices and financial institutions approved and authorized by the Central Bank”, said the ministry in a statement.

WPS is a UAE initiative, introduced in 2009, to enable a dynamic economy that guarantees timely and complete payment of the agreed-upon wages in order to safeguard the interests of the workers and attract talents from all across the globe.

According to Ministerial Decree No 739 of 2016 concerning the protection of wages, all companies registered with the ministry must subscribe to WPS and pay salaries through the system.

Earlier this month, MoHRE reminded private sector establishments to commit to paying the salaries of workers on time. WPS safeguards workers’ wages and the payment of stipulated salaries and making the salary process easy for the employers. It also improves job security and strengthens work relationships in the UAE, thereby securing workers’ rights. Additionally, it also provides protective and proactive measures to avoid labour disputes.