Wage Protection System (WPS) for domestic workers - the changes you need to be aware of

Mar 06, 2023
Wage Protection System (WPS)

Earlier this year, MOHRE (Ministry of Human Resources and Emiratisation) announced there would be changes to the way in which some domestic workers were paid.

First mentioned in January, the new Wage Protection System (WPS) regulations will now come into force on April 1, 2023, so with less than one month to go, it’s a good idea to know how it will affect you as an employer. 

From the beginning of next month, it will become mandatory to transfer the salary of certain domestic workers through the WPS (Wage Protection System.)

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Previously created by the ministry to safeguard and protect both workers and clients surrounding money being paid out on time, the system was previously optional. Although many had been using it to pay their full-time maids, nannies, and housekeepers, from next month the rule will become mandatory for those employing certain types of domestic worker.

These categories are as follows:

  • -          Private Agricultural Engineer
  • -          Private Messenger
  • -          Home Care provider (housekeeping, maid, nannies etc.)
  • -          Private Tutor
  • -          Private Trainer

The new regulations will only apply to workers who are employed by individuals and not a company, and currently no fines have been listed for those who do not transfer on time. However, employers found to have failed to make the payment within one month of the due date, will see it considered late payment and will be notified accordingly.

Following this, if it reaches two months with the payment failing to have been made, the employer will see their file suspended, in essence black-listed, and they will be notified of the reason. This suspension will only be cleared once the salary is paid.

The salary transfer itself can be done through banks, bureaux de change and financial institutions that are currently approved to provide the service. In addition, some smart banking apps will also be able to carry out the payment. There are a few exceptions to the late payment rules, and that is if the domestic worker:

  • -          Has a complaint against them
  • -          If they have been absent from work
  • -          If they do not work for the employer sponsoring their visa
  • -          If they did not complete 30 days of work after signing the contract with their employer

Following April 1, the Wage Protection Service will be available for employers to pay any category of domestic worker through as an option, but will be mandatory for the categories listed above.

Source: https://www.thenationalnews.com/uae/2023/01/26/five-categories-of-domestic-workers-in-uae-must-be-paid-through-online-payment-system/ 


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