1 February 2023
Introduction of Wage Protection System (WPS) by DMCC
The Dubai Multi Commodities Centre (DMCC), one of the world’s leading free zones providing a dynamic business environment for companies, has implemented a new Wage Protection System (WPS) as part of its efforts to promote fair and ethical business practices, protect worker rights, and ensure timely payment of wages.

WPS is an electronic salary transfer system that allows companies registered in the United Arab Emirates (UAE) to pay employees’ wages via banks or exchanges that are approved and authorized to provide the service. This system, developed by the Central Bank of the UAE (CBUAE), allows the regulator to create a database that records wage payments in the private sector to ensure the timely and full payment of agreed-upon wages.

Existing Employee
With effect from 15 February 2023, all DMCC registered companies (hereinafter referred to as employer or member companies) are required to register all their employees holding an active or expired employment visa or Personal Identity Card (PIC) for the WPS salary transfer with a bank or exchange house, whether the employee does or does not have a bank account. Thus, for all member companies, the payment of employee salary via WPS transfer is mandatory.

Shareholders holding member company-issued residence visas are not required to register for salary transfers.

New Employee
Henceforth, DMCC registered companies (employers) are mandated to register any new employees for salary transfer in the following cases:
  • Immediately after the issuance of the Company Employment Card (CEC)
  • Immediately after the approval of the Personal Identity Card (PIC) application
No Employees
However, no action is required as of now for member companies that do not have any employees.
It is important to note the following:
  • The salaries are to be paid in AED (Arab Emirate Dirham)
  • Charges imposed by banks or exchange houses are not to be deducted from the wages/salaries of the employees
  • The employees should be registered with banks or exchange houses authorized by the CBUAE
As per DMCC guidelines, during 2023, no portal sanctions or fines are applicable. However, starting January 2024, if a DMCC-registered company fails to transfer their employees' due salaries as per the employment contract, the DMCC may implement portal sanctions and fines, which will be deducted from the company’s portal account.
Our Comments
Under the WPS, all companies operating in the DMCC must register and comply with the guidelines. The system requires employers to submit employee payroll information electronically and make wage payments through a designated bank/exchange. This process helps prevent the manipulation of payroll records and ensures that all employees are paid their rightful wages on time. By implementing this system, the DMCC is providing a secure and efficient platform for companies to operate in and ensuring that workers are treated fairly and ethically.

In case you require assistance or more details, please feel free to connect with us via email at ds@nexdigm.com
USA | Canada | Poland | UAE | India | Hong Kong | Japan
This alert contains general information which is provided on an "as is" basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert.

© 2023 Nexdigm. All rights reserved.