Payroll Management
Outsourcing Your Payroll
When operating across borders and employing an international workforce, meticulous planning and thorough scrutiny are essential to ensure seamless compliance with your global HR policies and procedures and, most importantly, with local regulatory requirements. Failure to comply can lead to severe consequences, including legal sanctions, such as fines and work permit bans, and may even tarnish a company’s reputation.
With our highly qualified professionals and the state of the art software, CA Chartered Accountants LLC can manage your end-to-end payroll process.
Wages Protection System
In 2009, the UAE introduced the Wages Protection System (WPS), an electronic salary transfer system that facilitates timely and complete wage payments to employees through approved banks and financial institutions. This system, jointly developed by the UAE Central Bank and the Ministry of Labor, maintains a comprehensive database to ensure transparent and compliant wage disbursement. Companies that fail to adhere to the WPS guidelines face penalties and fines, potentially hindering their ability to obtain work permits.
To participate in the WPS, companies must select one or more authorized banks or agents licensed by the Central Bank. Upon receiving the salaries, the company’s authorized bank notifies the WPS, which subsequently transmits employee details, wages, and salary transfer instructions electronically to the UAE Central Bank. The Central Bank, in turn, forwards the information to the Ministry of Labor’s database to verify its accuracy against registered employee records. Once approved, the WPS sends the validated information to the designated agent, initiating the wage payment process.
