DMCC implements Wages Protection System
February 23, 2023
The Dubai Multi Commodities Center (DMCC) in Dubai, UAE has recently decided to implement the Wages Protection System (WPS) starting February 2023.
The WPS is a mechanism that is developed by the UAE Central Bank (CBUAE) that allows the companies to create a database of the record of the salary transfers to its employees. WPS intends to ensure and guarantee that the employees are paid with their salaries in a due and timely manner.
Currently, all DMCC companies are mandated to register themselves and their employees with WPS with any local UAE Bank or exchange houses. For new companies, the WPS registration must be done immediately upon obtaining the Company Employment Card (CEC) and upon closure of the application for the Personal Identity Card (PIC).
DMCC mandates that the salaries be paid only in the national currency of the UAE i.e. AED (Dirhams).
At the outset, DMCC shall not impose any fines or sanctions for non-fulfilments, however, starting January 2024, if any DMCC company fails to transfer salaries through WPS, then DMCC shall impose direct sanctions on the portal and the fines shall be automatically deducted from the companies’ portal e-wallet.
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