How Wage Protection Systems Are Geared To Protect Employees

December 7, 2021

Recent statistics from the World Bank have revealed that there are at least 6.8 million individuals comprising the United Arab Emirates labor force, the majority being immigrants. The steady rise in the working population and changes in worldwide culture have become catalysts to continual improvements in labor laws and processes geared to protect both employers and employees. True to its title as the worldwide leader of technological advancements, the UAE developed an automated payroll system launched to streamline the wage distribution processes.


What is the Wage Protection System?


The Wage Protection System (WPS) is the first of its kind in the MENA region. Introduced in 2009 in the UAE, this automated payroll system was created to improve the payroll processes in the workplace. Its objective is to provide an accurate, straightforward, and timely salary calculation and distribution that will benefit both the employer and the employees.


How is the WPS beneficial to employees? 


The system ensures that wages will be paid completely and promptly.

Digitized salary calculations and reports allow for fast and accurate payment amounts. Adjustments in pay due to policy changes, bonuses, or commissions can also be added into the system with ease as approvals can be done through the system. Additionally, strict penalties have been imposed by the government to ensure that companies submit full, authentic data.


Transparent calculations are possible with WPS.

Changes in the system are notified to the employees, allowing for a straightforward, trouble-free exchange. The wage protection system also has the ability to keep employee payment records in the system, making it easy for evaluation or extraction purposes. Within minutes, the WPS can produce electronic downloadable WPS files.


Increased autonomy in viewing payment records.

The wage protection system allows employees to update personal information, request allowances for relocation or housing, and to submit reimbursement receipts easily. Pay stubs can also be easily accessed and printed through this system for record keeping.


Up-to-date information on benefit calculation.

With this automated system, employees will be able to view benefits statements. Its record-keeping functions allow for easy backtracking of employee salary history in case of labor disputes and necessary adjustments. 


Strengthened job security. 

Lower employee turnover can be expected as a result of improved performance management and firm implementation of regulations regarding wage payments. 


Increased salary payments accessibility through automated processes.

Employees who do not have bank accounts can apply for a WPS card in the UAE for salary withdrawal. This eliminates having to receive wages in cheque forms, cutting cost and effort in going to banks just to claim their earnings. Additionally, companies registered to the wages protection system can partner with money exchange institutions in the UAE. These establishments can provide wage collection and salary disbursements to employees easily.


There is no minimum wage to be reached.

The wage protection system does not require a minimum wage for registration. All employees under the system will have their rights and wage payments safeguarded by the system.


Utilizing this automated payroll system is a step in the right direction in creating an improved workplace environment. Both the employers and employees can benefit from its numerous advantages, strengthening rapport and company productivity in the long run effectively.