A new wage system to protect workers in UAE

All institutions registered with the United Arab Emirates's labour ministry will have to pay their workers' wages and salaries from September this year through a new system that seeks to protect the rights of workers in the country.

The UAE labour minister, Saqr Ghobash, has issued a decree enforcing the Wage Protection System, which involves transfer of salaries and wages through selected financial institutions, authorised and regulated by the government, reports the Emirate's official WAM news agency.

A WPS office in the ministry will ensure that workers are not subjected to any deductions or charges to get their salaries.

Ghobash said the WPS would boost transparency and stability in the regional labour market. "The WPS will project the country as a model worth emulating in the area of boosting the rights of workers," WAM quoted him as saying.

Under the system, the employer can choose any registered agent to participate in the WPS. On receiving details about workers wages, the bank or institution, will send this information electronically to WPS.

The WPS will then send the salary file to the agent for payment and the agent will then pay the employees. The system will also feed the labour ministry with the necessary data and information of all salary and wage payments in the private sector.