1. Purpose of the Wages Protection System (WPS)
Administered by the Ministry of Human Resources and Emiratisation (MoHRE) in conjunction with the Central Bank of the UAE, the WPS is an electronic salary transfer monitoring system ensuring workers are paid agreed wages on time through approved banks and exchange houses.
2. Compliance Deadlines and Penalties for Non-Payment
Companies must transfer salaries through WPS within 15 days of their due date. Failure to transfer salaries for over 17 days triggers automated system warnings, halting work permit issuance and placing restrictions on company operational licenses.
3. Generating the Salary Information File (SIF)
The SIF file is a standardized pipe-delimited or CSV file containing: Employer Bank Routing Code, Employer Identification Number (EID), Employee Bank IBAN, Salary Pay Frequency, Basic Salary, Allowances, and Deductions. LedgerMapz automates 1-click SIF file creation upon monthly payroll confirmation.
4. End of Service Gratuity (EOSG) Calculation under UAE Labour Law
Article 51 of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) dictates gratuity entitlements: 21 days' basic wage for each year of the first 5 years of service, and 30 days' basic wage for each additional year, capped at 2 years' total salary.
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