Dubai | The Ministry of Human Resources and Indigenization has warned companies across the country to strictly adhere to the Wage Protection Act. The ministry has reminded private companies to transfer employees’ salaries to bank accounts. Failure to do so will result in a fine. Salaries should be transferred through the pay protection system on the due dates.
‘Wages are the right of the worker in lieu of the commitment of the worker to perform the duties. The ministry is working to ensure this, ” said Muhair al-Ubaid, assistant undersecretary for inspection affairs at the ministry. Introduced in 2009, this system ensures timely pay. The productivity of the workers will increase as a result of timely payment of wages. According to Ministerial Order No. 739 of 2016 on Wage Protection, all companies registered with the Ministry are required to subscribe to WPS and pay their salaries through this system.
Private sector companies must open an account with any authorized financial institution in the UAE. The employer authorizes the bank or agent to pay the employees. The bank then transfers the salary to the employee’s account.
Authorities will impose fines on companies that delay payment and fail to comply with the rules.
Failure to pay the wages within ten days of the due date is considered as late penalty. If a company submits incorrect data to avoid pay transfers, a fine of Dh5,000 per worker and a maximum fine of Dh5,000 will be levied if multiple employees are involved. Failure to pay on time will result in a fine of up to 1,000 dirhams per worker.
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