WAGE PROTECTION SYSTEM
In order to provide a safe, secure, efficient and robust mechanism to streamline timely payment of wages to employees by employers, the Ministry of Labour along with the Central Bank of UAE has implemented a Wages Protection System. This system is an important step towards ensuring and protecting the rights of workers, and towards establishing trust between establishments and their employees. Thus Wage Payment System marks the end of salary payment by cash. The system also ensures that all employees are being paid their monthly wages without fail, thereby benefiting the working class. MOL is benefited from having the real time information regarding payment of salaries.
Companies are now obliged to transfer the salaries of their employees through the new system. Companies that fail to abide by the decision will be subject to punishments and fines, and will not be able to obtain work permits.
In order to participate in this system, companies must select one or more agent from among the agents licensed by the Central Bank. Once the company authorised bank receives the employee salaries, it sends a notification to the Wages Protection System. The system then sends the workers’ details and wages as well as the salary transfer instructions electronically to the Central Bank of the UAE, which will in turn forward those details to the Ministry of Labour database in order to ensure that the details received correspond with those registered with the Ministry. The system will then send the approved information to the appointed agent in order to start paying the wages.
Zeta HRMS is one of the first HRMS Software to automate Wage Protection System (WPS) in HRMS software.
Zeta has built in and interfaces to the Central Bank based on the WPS file format. Zeta generate SIF file (Salary Information File) easily from your existing payroll output file. After sending the payslips automatically to the employees the rest of the process is totally automated in our system. The system automatically check for Establishment ID as provided for your organization by the MOL, any incorrect information is also checked for invalid Employee Code, duplicate entries for the same employee in the same file. Zeta HRMS also generates all key reports related to WPS.