DMCC has already informed the implementation of the WPS system for the companies registered under DMCC. According to this implementation, all the companies are informed to pay the salaries of their employees through the WPS system effective from February 15, 2023. Starting from January 2024, DMCC might implement portal sanctions, fines, and other penalties for noncompliance with WPS.
This initiative was taken to protect the rights of the workers and the companies operating in DMCC are required to comply with the new WPS requirements. This system will ensure timely wages for the employees and promote fair business practices.
What Is DMCC WPS?
The Wage Protection System is an electronic salary transfer system that monitors and oversees the payment of the salaries of employees in the UAE and allows the DMCC to keep a record of private sector salary payments. Let’s have a look at the steps in implementing DMCC WPS.
- You have to update the recent salary of all the staff in the DMCC portal.
- After updating the salary, set up monthly salary payments through the Company UAE bank or Exchange house.
- Download the current month’s salary report from the DMCC portal. Go to “My Reports” to download and extract the report for WPS salary current month in DMCC Portal.
- After downloading, prepare the salary information file using the template provided by the bank or exchange house. Both employee and employer codes to be used in SIF will be available in the WPS salary report -current month.
- Upload salary information file to the exchange house or bank for processing monthly salary.
How DMCC WPS Works?
Employers, employees, banks, and exchange houses are involved in DMCC WPS. The model adopted by the UAE central bank is where information flows from the employer through WPS to the contracted agents for payment of the wages to the employees. The funds from the employer are secured for dispatching to the agents the information about the employees.
The employer has to get the employer ID from the DMCC portal. If the company number is 97777, then the employer id will be DMCC00097777. The company number can be obtained from the company license. Employer ID should be 13 digits and these details are important for the compliance of the WPS in DMCC.
Is Registering For WPS Mandatory In WPS?
All DMCC companies are required to register all their employees holding an active or expired employment visa or Personal Identity Card for the WPS transfer with a bank. The payment of the salary via WPS transfer is mandatory for all the DMCC member companies in UAE. One of the best accounting firms in UAE can help you with WPS registration and other related requirements.
Shareholders holding member company-issued residence visas are not required to register for salary transfer. Companies providing payroll services or accounting services in Dubai provide further information in this regard.
Things To Remember For WPS In DMCC
Companies registered in DMCC need to consider these points while registering for WPS:
- Salaries for employees must be paid in AED.
- It is mandatory for companies to register their employees with exchange houses or banks authorized by the CBUAE.
- Any charge imposed by the banks or exchange houses should not be deducted from the salaries of the employees.
DMCC WPS Registration: ebs Can Help You
To ensure compliance with WPS in DMCC, you need one of the best accounting firms in Dubai that provides robust payroll services and expertise. ebs offers end-to-end support to your business by providing the best payroll services in Dubai, UAE. Our payroll services in Dubai include services including employee benefits such as gratuity, annual leave encashment, other end-of-service benefits, loans, and salary advance.
We also offer services such as accounting and bookkeeping services, VAT services, Auditing, Due Diligence audit services, and many more.
If you have any other queries about accounting services or require any other services, then feel free to contact us. Our experts will get back to you immediately and will offer you a free consultation.