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March 2025

IT Jobs Dubai

Is Dubai Good for IT Jobs? Here’s What You Need to Know Before Moving
Is Dubai Good for IT Jobs? Here’s What You Need to Know Before Moving 800 500 HRSG

Dubai’s digital boom is a blueprint for cities globally. The IT market is on the verge of witnessing a massive growth spurt, driven by artificial intelligence, cloud computing, and other technologies. 

One thing is certain: To expand and conquer the world technologically, Dubai will need specialists in information technology and related fields. The number of jobs is going to grow. But should you move to Dubai for an IT role?

This blog will answer this question in detail. We will look at the factors driving IT expansion, salaries you can expect, work policies, and more. 

Two Important Factors Driving the IT Expansion in Dubai 

D33 Economic Agenda

The Dubai Economic Agenda (D33) aims to double the size of Dubai’s economy in the coming decade. It includes 100 transformational projects, one of which happens to be the ‘Sandbox Dubai,’ which allows testing and commercializing of new technologies.  

Some of the other projects include:

  • Launching a scale-up program for 30 companies to shape them into global unicorns
  • Developing an SME scale-up programme by identifying 400 high-potential companies

As for numbers, the agenda also includes increasing investments, be it foreign direct investment or private sector investment. Another goal is to generate an annual contribution of AED 100 billion from digital transformation projects to Dubai’s economy.

Of course, all of this will require tech support in one way or the other. Some may even require specialized job roles that are very niched and targeted while others may demand an approach similar to that of a polymath. 

Smart Dubai Initiative

Via its Digital Dubai Office, the Dubai government has launched 130+ partnerships with government and private sectors. Some of these initiatives are: 

  • Dubai Data Initiative
  • Dubai Blockchain Strategy
  • Dubai AI Roadmap
  • Dubai Paperless Strategy 

Of course, all these initiatives are rooted and backed by information technology. This means that tech leaders and specialists will not only be needed to set up the activities under these initiatives, but also maintain them and further expand on them. 

IT Employees Dubai

Benefits of Working in Dubai

Higher Salaries 

Dubai offers one of the most competitive salaries for all roles as compared to other top cities globally. This is especially true if you are a skilled professional in domains such as IT, finance, healthcare, and its likes. 

Tax-Free Income

Unlike other countries where your salary undergoes taxation, Dubai does not have a personal income tax policy. Which means you get to take home every penny you earn. 

Career Growth

Even if you start at entry level, there is a good chance of growing exponentially in your career in Dubai. Since the economy is rapidly expanding and the government is actively pushing for growth, many companies are expanding, and new projects are being launched. 

So if you actively work on developing your expertise and skill set, the chances for career advancement and professional networking can be quite high.  

Quality of Life

One of Dubai’s primary goals is happiness. As the government transforms the city through smart technology, they are parallelly working to enhance everybody’s short- and long-term happiness and wellbeing.  

They have a Happiness Agenda, a one-of-a-kind, scientific and systematic approach, in place for raising and sustaining happiness levels and measuring the impact on their residents and visitors. 

In addition to this, the city has excellent infrastructure, public transportation, residential areas, entertainment opportunities, and medical services. Leisure spots are another highlight of city life, and they contribute to the high quality of life. 

Cultural Experience

Dubai is quite like a home away from home, given its mix of cultures, foods, and languages. The city houses people from all over the world, making it culturally rich and making it a diverse experience for everyone. Moreover, everyone here is extremely warm and considerate. 

IT Salaries in Dubai

When we say that Dubai offers one of the most lucrative salaries, we are not joking. Below are the average monthly salaries across different IT roles in Dubai:

  • IT Engineer: AED 6,500 
  • Information Systems Specialist: AED 5,000 
  • IT Assistant: AED 3,500 
  • Assistant IT Manager: AED 9,500 
  • System Administrator: AED 7,500 
  • IT Manager: AED 12,500 
  • IT Infrastructure Manager: AED 12,000
  • IT Project Manager: AED 16,000
  • Technical Manager: AED 16,500 

IT girl working

Other Things You Need to Know

  • Employees can apply for a job from anywhere in the world. However, to live and work in Dubai, you will need a residence permit and work visa. 
  • You may also obtain a job-seeker visa if you want to visit the country to look for employment. 
  • Health insurance is mandatory for all employees, regardless of the category. 
  • Many companies may also include transportation and housing allowances as part of salary packages. 
  • Some employees may also be eligible for relocation assistance to move to Dubai.
  • There are generous leaves for all employees here. This includes annual leave, sick days, and maternity leave to guarantee a healthy lifestyle. 

Conclusion

If you are exploring job opportunities in the information technology industry in Dubai, there is no better time to do so. The Dubai government is extremely supportive and works relentlessly to streamline the legal processes for tech enterprises, as well as offer world-class support to companies. 

The city’s IT sector boasts global leaders like Meta, Microsoft, Google, IBM, Apple, Cisco, and Tata Consultancy Services. Moreover, this list is set to expand as the Dubai Chamber of Digital Economy attracts more startups to the city. 

Not to forget that Dubai Internet City (DIC) and Dubai Outsource Zone (DOZ) together have approximately 1,600 companies registered and 15,000+ skilled employees. And these numbers are only expected to grow. Finally, there is no doubt about the lucrative salaries and employee policies that ensure fair treatment.

HRSG is globally renowned for its HR services in Dubai. Our key presence in the UAE and KSA markets grants us ample knowledge and experience to simplify business complexities and drive agility in your organization. Our people, business, finance, and accounting solutions address important facets of your business for unprecedented productivity and growth. Contact us today and see what we can do for you. 

 

UAE Labour Card

UAE Labour Card 2025: Everything You Need to Know
UAE Labour Card 2025: Everything You Need to Know 800 500 HRSG

Many factors set UAE’s job market apart from the rest of the world. A strong and stable economy, tax-free income, and diverse career opportunities are just a few things that make this region an ideal destination for job seekers from all over the world.

The UAE’s authorities have introduced several policies and rules to protect the rights of both its employees and employers. One key step in this direction is the labour card. Every candidate looking for work must always have this card with them when looking for a job in the UAE.

But what exactly is this labour card and how can you get one for yourself? This is what this blog is all about. So, keep on reading till the end to know everything there is about the labour card in the UAE.

  • What is the UAE Labour Card 2025?
  • UAE Labour Card Eligibility Criteria
  • The Process for Getting a UAE Labour Card
  • Required Documents
  • The Applications Process
  • Ways to Check Your UAE Labour Card Online
  • Downloading the UAE Labour Card
  • UAE Labour Card: Fee, Expiry, and Fines
  • Modification or Renewal of the UAE Labour Card
  • Benefits of the UAE Labour Card

What is the UAE Labour Card?

A labor card is a form of identification that every worker in the UAE must possess and carry with them at all times. The Ministry of Human Resources and Emiratisation (MoHRE) or the relevant free zone authorities in the place of your work are responsible for issuing the UAE labour card. The labour card is a form of ID showing details regarding your work in the UAE.

This essential document for workers in the UAE establishes better employer and employee relations by facilitating the sharing of vital information. This information can also be used to determine employee benefits or for setting up payroll.

Initially, MoHRE issued physical labor cards but there was a change in the policy. Now workers get a digital version of the card that they can keep on their phones, or they can print these themselves if they prefer keeping a physical paper copy.  

Following is a list that shows the type of information you can find on your labor card:

  • The employee’s name
  • The name of the employer
  • The employee’s labor card number
  • The employee’s work permit number
  • The employee’s occupation
  • The nationality of the employee
  • Card Expiration Date
  • The employee’s personal identification number

Happy employee with UAE Labour Card

UAE Labour Card Eligibility Criteria

Every employee in the UAE regardless of the nature of their work, nationality, or the nature of their sector, i.e., public or private must obtain a labour card and an appropriate work permit to show compliance.

Following are a few considerations in this regard:

  • Every employee older than 18 and younger than 60 is eligible for the labour card.
  • The employee must be academically qualified for the role.
  • The employee must be physically and mentally fit and they must pass necessary medical examinations.
  • Foreign employees must possess the relevant certificates from their home country.

As an employer, you need to pay attention to the following details:

  • You must not possess expired labour cards.
  • Employers must strive to keep their records in order.
  • They must compensate the employees fairly in terms of salary and benefits based on their work.
  • The businesses must adhere to every MoHRE guideline.
  • The employers must provide the employees with the labour card within 60 days of their arrival.

Failure to do these things can lead to violations, which opens you up to fines and other penalties.

The Process for Getting a UAE Labour Card

Following are the main steps involved in the process of getting your UAE labour card:

Required Documents

First and foremost, you need to gather all the essential documents you will need to fill out the application. You can look at the following checklist for this purpose.

You will need:

  • The latest photograph (of the employee)
  • Company’s valid trade license Copy
  • Copies of employees’ passports and their entry visas
  • Health certificate of the employee
  • Employment contract (3 copies)
  • Academic credentials, depending on the job, i.e., a copy of a university certificate for a doctor, engineer, lawyer, etc.

The Applications Process

Following is the step-by-step process for obtaining a labor card in the UAE:

  • Foreign workers first need a valid residency visa along with a work permit to get a job in the region. The residency visa shows you are allowed to live and work in the country, and it is essential for getting your work permit or labour card. 
  • Next, you will need to obtain your work permit before legally starting a job in the UAE. Your work permit is mainly taken care of by the employer. You can usually get your labour card while applying for a work permit.
  • Next, your employer needs to get a visa quota approval from the MoHRE.
  • In the case of free zone companies, they must get this approval before the employee sets foot in the UAE.
  • The applicant undergoes a background verification process and necessary security checks.
  • They must get a signed contract letter in Arabic and English.
  • The ministry then issues the entry visa “the pink visa” which gives the employee entry into the UAE.
  • Next, the employee has to go through mandatory medical screening to obtain relevant documentation.
  • They also need to provide additional documents as required in the application form and visit the Emirates ID center.
  • After the fee payment, the labour card is issued to the candidate through their sponsoring company. 
  • Once the permit is issued, the passport, Emirates ID, and work permit are stamped officially.

The entire application process for the UAE labour card takes between 2 to 3 weeks to process. By following the above steps, you can ensure that unnecessary delays are eliminated.

Ways to Check Your UAE Labour Card Online

Following are the two ways you can easily check your labour card number

  • You can use the MoHRE app, which is available both for Android and iOS devices for this purpose. Simply log in to the app, click on your profile, and you will see every piece of information regarding your employment including labour card number, issue date, expiry date, etc. You can also see an electronic version of your labour card by clicking on “View Labour Card” from the app.
  • You can also visit your local Tas’heel service center to get your employment details like labor card number, contract, etc., in person.

Downloading the UAE Labour Card

The UAE authorities no longer issue physical copies of this card. However, you are allowed to download and print this card yourself if you prefer to keep a physical copy with you at all times.

Here is what you need to do to download this card:

  • Visit the official MoHRE website and head to the “Services” section.
  • Now you can select “New Enquiry Services” and then click on “Choose a Service”.
  • Next, you can choose “Print Electronic Work Permit” to proceed.
  • Now you will need to add information like Work Permit Number, Transaction Number, Person Code, Date of Birth, and the security code that appears on your screen.
  • Next, you can click on “Search” to see your details.
  • At the top right corner is the option “Print”. Click on it and your card will be downloaded and printed instantly.

Checking UAE Labour Card

UAE Labour Card: Fee, Expiry, and Fines

Fees

Following are the labour card or work permit fees from inside the country, i.e., for valid residence visa holders:

  • Work permit for persons sponsored by their kinship = AED 200
  • Work Permit for those sponsored by their kinship, including a two-year labour card = AED 300 for the first category, AED 2,000 for the second, and AED 5,000 for the third.
  • Juvenile Work Permit = AED 100
  • Temporary Work Permit = AED 100
  • Temporary work permit with 6-month labour card = AED 500
  • Part-Time Work Permit = AED 100
  • Part-time work permit with 1-year labour card = AED 500

Following are the work permit fees from outside the country for all employment types:

  • Applying for a work permit = AED 200 for each worker
  • Issuance of Work Permit  including Two Years Labour Card = AED 300 for Category 1, AED 600, AED 1,500, AED 200 for Category 2, AED 5,000 for Category 3
  • Work permit (recruitment and employment of workers aged over 65 years from abroad including a two-year labour card) = AED 5,000
  • Changing work permit = AED 200

Following are the fees for the Renewal of labour cards and Transfer of Employees from One Establishment to Another (All Contract Types)

  • Labour Card Renewal – Two Years =
    AED 300 for Category 1,
    AED 600, AED 1500, AED 2000 for Category 2,
    AED 5000 for Category 3
  • Issuing labour card instead of a lost or damaged card = AED 200
  • Changing labour card details or employment contract details = AED 200
  • Permit for transfer from one establishment to another = AED 200
  • Worker transfer and employment permit, including two-year labour card = AED 300 for Category 1,
    AED 600, AED 1,500, AED 2,000 for Category 2,
    AED 5,000 for Category 3.

Expiration

The UAE labor card is valid for 2 years for private employees and for 3 years in case the employee works for a government entity. In both cases, the employee must renew their labour card within 50 days following the date of expiration.

Fines

Not applying for a new card within the specified period can lead to a fine of AED 500. To check your fines, you can visit the MoHRE website, click on “services”, and then on “new enquiry service”.

Then you can select “choose a service”, and click on “fine calculator”. Next, you can enter your card number and security code and click on “search” to see your labour card fines.

Modification or Renewal of the UAE Labour Card

Every employee must renew their labour card within 50 days after it expires. They can do it by visiting the Tas’heel center. The official government website allows you to view the application status of your labour card renewal.

You need to enter your IN number on the application receipt and you will receive the new card in about 10 days. 

You can also modify your labour card at Tas’heel center by providing the relevant required documents and the reasons for making the change. In some cases, you will need a letter of approval from the relevant government agencies to go through with the modification process.

Benefits of the UAE Labour Card

Following are the main benefits of the UAE labor card for employees:

  • This card allows employees to access work-related benefits.
  • Employees can input the card information into their payroll systems, which helps them better manage their health insurance.
  • This card also makes it much easier to determine accurate work hours, sick day payments, and annual leaves.
  • This card ensures the employers adhere to all UAE labor laws or employment regulations, including a 48-hour work week with 8 hours of work every day, as well as overtime capped at two hours for most sectors, etc.

Conclusion

The UAE labour card is an important document that every employee must possess to show compliance with labor laws and to ensure their rights are protected at all times.

This card allows workers to get fair wages, health insurance, and several other benefits. This is why anyone planning to work in the UAE must understand the labour card requirements.

By staying informed, maintaining the necessary documents, and following the key rules, it is possible to avoid violations and guarantee both the employers and the employees stay compliant with the UAE labour laws and regulations at all times.

Contact HRSG today to navigate the UAE labour card processes without errors. From obtaining a labour card to ensuring timely and accurate fee payments, we can assist you with everything you need.

Corporate Tax In UAE

How To Register for Corporate Tax In UAE: A Complete Guide​
How To Register for Corporate Tax In UAE: A Complete Guide​ 800 500 HRSG

Corporate tax registration is an important part of running a successful business in the UAE. To ensure seamless operations and to make the most of the region’s relaxed tax policies, every business needs to understand how to register for corporate tax in the UAE.

Ever since the introduction of the corporate tax system in 2023, every business operating in the region is required to register for this tax. However, most businesses have no idea how this registration process works.

Failing to file corporate tax returns on time can result in fines and even license cancellation. To avoid these issues, you need to stay on top of your corporate tax responsibilities.

This blog covers the detailed process for corporate tax registration in the UAE. Using this information, you can easily register for this tax and save yourself both time and trouble.

  • Understanding Corporate Tax in the UAE
  • Who Must Register for Corporate Tax in the UAE?
  • Exemption from the Corporate Tax
  • Corporate Tax Rate
  • How to Register for Corporate Tax in UAE: Step-By-Step Process
  • Common Mistakes to Avoid When Registering for Corporate Tax in the UAE

Understanding Corporate Tax in the UAE

The corporate tax is the direct tax on the net income of businesses that operate anywhere in the UAE.

The Ministry of Finance in the UAE introduced the corporate tax law in 2022 to fully implement it in the financial year 2023. The FTA’s Federal Decree Law 47 states that every taxable business, including those in the free zone, must register for corporate tax and get a tax registration number (TRN).

After registration, these entities will pay tax at a standard rate of 9% if their taxable income exceeds the AED 375,000 threshold. If the taxable income of a business is below this threshold, it will be charged with 0% corporate tax.     

Who Must Register for Corporate Tax in the UAE?

If your business falls into the taxable category under the UAE corporate tax policies, you must register for corporate tax. Every business that earns more than AED 375,000 annually must register for this tax on a mandatory basis.

The following are the main entities that must register for corporate tax:

  • Businesses in the UAE mainland
  • Freezone businesses conducting business with the mainland
  • Banking and financial institutions
  • Foreign entities with permanent UAE offices
  • Companies or entities that are managed and controlled within the UAE

Register for Corporate Tax In UAE

Exemption from the Corporate Tax

Some businesses in the UAE are exempt from corporate tax. Though FTA requires such businesses to register for corporate tax or value added tax, they are subject to a 0% tax rate.

Following are some exemptions from the corporate tax in the UAE:

  • The salary of the employee
  • Income from shares, dividends, or capital gains earned in a personal capacity
  • Entities involved in the extraction of natural resources
  • Intra-group transactions or reorganizations 
  • Real estate investments 

Corporate Tax Rate

The Federal Decree-Law No. 47 of 2022 of the UAE states that every taxable entity whose income exceeds AED 375,000 annually must pay corporate tax at the rate of 9%.

Companies whose taxable income is below AED 375,000 and the ones that operate in the UAE free zones are subject to a 0% tax rate. In the case of free zone companies, they must meet the Qualifying FreeZone Person criteria and possess qualifying income if they are to be taxed at a 0% rate.

How to Register for Corporate Tax in UAE: Step-By-Step Process

Following is the detailed step-by-step process for corporate tax registration in the UAE:

  • Gather required documents such as trade licenses, financial statements, company information, bank account information, contact details, passport and ID copies of owners, authorized signatories, shareholders, and directors.  
  • Access the Emaratax portal from the FTA website and register for a new account.
  • Login to the portal with your accurate credentials. You will see all taxable entities linked to your account on the dashboard.
  • If there are no taxable entities, you can add a new one to proceed.
  • Click on “Register for Corporate Tax” to begin.
  • Add entity details like entity type, i.e., mainland business, free zone company, etc., and trade license number, legal structure, and registration number.
  • Click on “Add Business Activities” and then enter the details about the specific activities conducted under your trade license.
  • Entities whose 25% or greater stake is owned by certain individuals must enter the complete ownership details.
  • Businesses that have more than one branch, must add the trade license as well as the business activities of each branch. 
  • Add your business address, phone number, email, and other contact details.
  • Add details like IDs and passport details of persons who are authorized to sign tax papers on your behalf. You must add the correct details of the authorized signatories as well as relevant proof of authorization.
  • After filling out the information, review the entire application carefully. Then tick the declaration box to proceed.
  • Finally, you can submit the registration form by clicking on the “Submit” button.

After submission, the FTA will review your application to ensure the details you have provided are all accurate. You can expect to get a confirmation email for the corporate tax registration along with a TRN in 20 business days. 

Calculating Corporate Tax In UAE

Common Mistakes to Avoid When Registering for Corporate Tax in the UAE

Following are some of the most common mistakes that you must avoid to ensure accurate corporate tax registration in the UAE:

  • Not registering for the corporate tax on time.
  • Entering incomplete or incorrect details of your business.
  • Not paying attention to proper record-keeping or documentation.
  • Not claiming tax incentives or tax deductions.
  • Not seeking assistance from corporate tax professionals. 

Conclusion

Most businesses find it hard to navigate the complex process of corporate tax registration in the UAE. Not paying attention to deadlines, financial record keeping, and proper filing of returns are just a few ways these businesses mess up the process and suffer a great deal.

However, with proper due diligence and a proactive approach, it is possible to handle your corporate tax responsibilities better and avoid issues like operational disruptions or fines.

Businesses can further streamline their tax registration and financial management processes by seeking help from tax professionals. These experts facilitate timely and accurate tax filing, thus ensuring full compliance.

You can visit us at HRSG to get the best corporate tax, VAT, and accounting services for your businesses all over the UAE.  

What is WPS in UAE

What is WPS in UAE? A Look at the Wages Protection System in UAE
What is WPS in UAE? A Look at the Wages Protection System in UAE 800 500 HRSG

The UAE government prioritizes protecting the rights of its workforce above all else. There are many policies currently in effect that ensure the region’s diverse and inclusive workforce is taken care of in terms of salaries, benefits, and other basic employee rights.

One big step in this regard is the implementation of the Wages Protection System (WPS) which is an electronic system that ensures the fair and timely payment of the salaries of the workers in the UAE.

The WPS system facilitates transparency and fosters trust between employers and employees by streamlining payroll processes and safeguarding workers’ rights.

This blog takes a closer look at the WPS in the UAE in detail. So, if you are new to the region and have no idea what WPS is in UAE and wish to learn more about the ins and outs of this innovative system, then keep on reading till the end.

  • An Introduction to the WPS in the UAE
  • Benefits of the WPS
  • The WPS Registration Process
  • How Does the Wages Protection System Work?
  • The WPS SIF Format
  • Rules for Naming Your SIF
  • Tips to Ensure Compliance with the WPS System in the UAE
  • Consequences of Non-Compliance

An Introduction to the WPS in the UAE

WPS Full Form

WPS stands for Wages Protection System. This innovative system was first launched in July 2009 as per the Ministerial Decree No 788. This initiative resulted from the combined efforts of the Ministry of Human Resources and Emiratisation (MoHRE) and the Central Bank of UAE.

This system was further reinforced in 2016 as per Decree No 739. In 2019, additional regulations and guidelines were introduced to increase the scope as well as the effectiveness of this system.

The WPS system refers to a digital salary transfer system that facilitates fair and timely payment of salaries for workers via financial institutions like exchange houses or banks.

WPS UAE protects the wage rights of employees by ensuring transparency as well as proper compensation every single time. WPS gives employers a single centralized database where they can upload the salaries, which MoHRE and Central Bank can validate to ensure fairness.

This system acts as an effective deterrent against fraudulent practices including intentional salary delays, illegal funding sources, and unfair compensation.

WPS mandates that every employer must pay salaries through accredited financial institutions, which ensures better monitoring of wage payments, thus promoting transparency.

This way, WPS prevents labor disputes by addressing every payment-related issue on time. For employers, this system automates payroll processes, saving time, and facilitating better record keeping, which helps in case of disputes.

Benefits of the WPS

WPS has a lot of benefits both for employers and employees. Here are some notable ones that you need to know:

  • It facilitates accurate tracking of fund movements like cash inflow and outflow, which eliminates fraudulent or illegal sources from your business.
  • WPS ensures transparency in terms of salary details by validating the data and forwarding it to a financial organization that disburses the funds.
  • This system ensures that salaries are paid on time, which safeguards employees’ finances and rights.
  • The timely salary payments give the workforce financial stability, which also reflects positively on their productivity.
  • WPS processes ensure your business shows compliance with the UAE labor laws.
  • The WPS streamlines the salary disbursal process by automating payroll tasks and eliminating manual errors, which saves time.
  • It gives employers hardcore proof that they can use to settle fraudulent non-payment cases.   

Wages Protection System in UAE

The WPS Registration Process

Every employer must register for the WPS if he or she wishes to show compliance with the labor laws and avoid potential penalties. However, before registering to this system, there are some requirements that you need to keep in mind.

  • The employer needs to have a corporate bank account registered within the UAE.
  • Your business must have a valid contract with a WPS agent, which can be a bank, exchange house, fintech, or any other financial institution. This agent will carry out the payment of the wages to the employees.
  • The wages must be paid according to the schedule stated in Ministerial Decree No. 788 as amended in Ministerial Decree No. 739 of 2016.
  • Every employer must pay at least 70% of all staff and at least 75% of wages or salaries.
  • Employers have to pay bank fees, provider charges, and other expenses related to payment costs or WPS.

After considering these requirements, you can proceed with the registration process. Employers can use MoHRE’s official website to register for the WPS. For registration, you have to add company details provided by the ministry.

After registration, you have to enter the following information into your portal:

  • Bank account details
  • List of employees
  • Details of the bank or agent you have a contract with 
  • The bank where the employees have an account
  • The dates on which salaries are to be paid
  • Payroll details

How Does the Wages Protection System Work?

Following are a few points that explain the working of the WPS:

  • Employer Registration

Businesses first need to register with MoHRE and an approved WPS agent.

  • Preparation of SIF

Employers then have to create SIF files in an approved format. These files must include employee information and salary details and must be submitted to a WPS-approved agent.  

  • Salary Check by MoHRE and Central Bank

After submission, the MoHRE and the Central Bank do a salary check. This ensures the data in SIF files is accurate and according to the WPS guidelines.  

  • Issuance of the Payment Order

After the WPS salary check and verification, the payment order is issued by the MoHRE and the Central bank to the WPS agent. In case of issues, the employers receive an email stating the errors that they need to remove.

  • Transfer of salary

After the issuance of the payment order, the WPS agents transfer the salary to the bank account of the employees. Some WPS agents issue a WPS payroll card which works like a regular debit card. This further facilitates better transfer and withdrawal of salaries   

The WPS SIF Format

SIFs are salary information files that are a must to ensure accurate payment processing and transfers. A SIF file is created in Excel using a very specific format. You need to add EDR or Employee Details Records to an SIF file. In this file, every employee has a row that starts with a separate EDR column.

Here is the general format of an SIF file:

A B C D E F G H I J
Employee details record Employee 14-digit labor card number Bank Routing Code Employee bank account number Start date of salary End date of salary Number of days for which salary is paid Fixed or basic salary of an employee Variable salary Number of

leave per year

You also need to add your company’s details or the Salary Control Records to the SIF file. Here are the main things you need to add:

  • Company name and ID
  • Payroll period (month and year)
  • Total number of employees
  • Total salary amount
  • Employee name and labor card number
  • Bank account or wage card number
  • Salary amount
  • Number of days worked
  • Overtime hours and the amount
  • Allowances and deductions

Rules for Naming Your SIF

Here are some important points you need to consider when naming your SIF file:

  • The name must be a combination of the MoHRE employer ID and the date and time.
  • The first 13 digits of the name must be the employer’s ID.
  • These digits should be followed by a date in the YYMMDD format.
  • The last six digits should represent the time in hhmmss format. 
  • All of these combined will give you the 25-digit SIF file name followed by .SIF extension.

Tips to Ensure Compliance with the WPS System in the UAE

Following a few things you can do to show compliance with the WPS system in the UAE:

  • Communicate the requirements, policies, and impacts of the WPS system clearly with your employees.
  • Ensure timely and accurate preparation and submission of SIF files.
  • Register with approved financial institutions.
  • Use payroll software to ensure accurate record-keeping.
  • Conduct regular audits to show WPS compliance.
  • Adopt transparent practices to reduce payment disputes.

Compliance with uae labor laws

Consequences of Non-Compliance

The failure to meet the WPS requirements opens you up to fines, penalties, and other legal complications. This is done to protect workers’ rights and prevent fraudulent practices. The fines for payment delays vary based on the size of your company.

Here are the consequences of non-compliance when it comes to WPS:

Companies with 100 or More Employees

  • If a company has 100 or more employees and they fail to pay the salary within 10 days of the due date, they will not get further work permits.
  • The second violation will result in complete work permit suspension. The third violation means the company must pay a fine of AED 5,000 per every unpaid worker.
  • Employers will not be able to issue other companies and the MoHRE can take actions against all other companies that they own.
  • The organization will be downgraded to a third category and the employees will be allowed to move.

Companies with less than 100 Employees

  • The first violation results in a warning from the MoHRE.
  • The work permit restrictions are applicable after the second violation.
  • The third violation will lead to fines and administrative closure in some cases.

Other Penalties

  • If the salaries are delayed for 30 days, the company will be referred to the juridical authorities by the MoHRE. 
  • Not paying for 60 days will lead to a fine of AED 5,000 per affected worker. The fine can also reach a maximum of AED 50,000 for multiple workers.
  • Providing incorrect information to evade salary payments will lead to a fine of AED 5,000 per affected worker.

Conclusion

Compliance with the WPS is the only way employers can ensure timely and fair payments of employee wages, safeguard employees’ rights, and protect themselves from severe penalties.

The WPS’s robust framework creates a fair and transparent working environment where every employee feels valued and appreciated. This is why every employer needs to implement this system if they wish to minimize salary disputes and take the productivity and efficiency of their operations to a whole new level.

Contact HRSG if you are looking for wages protection system implementation services for your business to streamline payroll processes and ensure timely and accurate payments to your employees.

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