DMCC Wage Protection System (WPS)

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    DMCC has informed on the implementation of the WPS system for the companies registered under DMCC. All Companies are informed to pay their employees’ salaries through WPS system Effective from February 15 ,2023. There is no consequences in 2023. However, starting January 2024, DMCC may implement portal sanctions, fines and other penalties for non compliance of WPS.

    What is DMCC WPS?

    The Wage Protection System is an electronic salary transfer system that monitors and oversees the payment of employees’ salaries in the UAE and allows the DMCC to keep a record of private sector salary payments.

    Steps in implementing DMCC WPS

    1. Update recent salary of all the staff in DMCC portal.
    2. Set up monthly salary payments through Company UAE bank or an Exchange House.
    3. Download Current month salary report from DMCC portal –
      In order to download, Go to “My Reports” and extract the report for WPS salary-Current month in DMCC Portal.
    4. Prepare Salary information file (SIF) using the template provided by the bank or exchange house. Both employer and employee code to be used in SIF will be available in the WPS salary report-current month downloaded from DMCC portal.
      SIF Files composition

      1. Employee details are found on the EDR rows

        Column A – Employee Details Record.

        Column B – Employee 14-digit DMCC number.

        Column C – Bank routing code.

        Column D – IBAN.

        Column E – Start date of salary.

        Column F – End date of salary.

        Column G – Number of days salary paid.

        Column H – Fixed or Basic Salary of Employee.

        Column I – Variable Salary.

        Column J – No of Leave.

      2. The last row has the employer details as follows:

        Column A – SCR column (Salary control record)

        Column B – 13-digit DMCC Company ID.

        Column C – 9-digit bank Routing Code.

        Column D – File creation date.

        Column E – Time of file creation.

        Column F – Payroll Month and year.

        Column G – No of records in the file.

        Column H – Total amount of salary paid.

        Column I – Payment currency which is in AED.

        Column J – Optional field.

      A sample SIF file looks as below

    5. Upload/submit Salary Information File (SIF) to the bank or exchange house for processing monthly salary

    Who all are the parties involved in DMCC WPS?

    HOW DMCC WPS Works?

    The model adopted by the UAE Central bank is where information flows from the employer via WPS to one or more of the contracted agents for payment of the wages to the employees. The funds from the employer are secured by CBUAE prior to dispatching of information to the agents.

    The WPS cycle is explained below in the following infographic;

    Employer and Employee ID format

    Employer ID

    • If company number is 956325, employer id will be DMCC000956325.
    • Company number can be ascertained from company license, mentioned as ‘Account Number’.
    • Employer ID should be 13 digits.

    Employee ID

    • Format-DMCC+000+Company employment card/Permanent identity card (PIC).
    • If PIC ID is 3264598, employee ID will be DMCC0003264598.
    • Employee ID should be with 14 digits, Always adjust number of zeros to keep the total length as 14 digits.

     

    Frequently asked questions

    1. How can one register with DMCC WPS?

      Registration can be done by contacting the bank which the employer holds a local corporate account or through an authorized exchange house.

    2. What are the advantages of DMCC WPS?

      • Ensures that the agreed-upon wages are paid on time.
      • Provides advanced solutions that help employers safeguard their own interests and reduce the hassles associated with paying the employees.
      • Improves job security, at the same time ensuring transparency.
      • Ensures that DMCC is updated on wage data in the private sector.
      • Helps in taking measures to reduce labor disputes regarding wages.
    3.  Can one process salary payments via DMCC WPS in a foreign currency?

      The only authorized currency of remittance is the UAE Dirham. DMCC WPS payments must be made to a bank account registered in the UAE.

    4. Which payments to employees are processed via DMCC WPS?

      All salaries must be processed via DMCC WPS. However, if employees receive any other form of payment from the employer other than salary payments, then these too can be processed via DMCC WPS.

    5. Can a group of companies make all the salary payments for all staff via one SIF file?

      No, every company under the group should make their salary payments separately. DMCC WPS does not permit the mixing of payments from different companies in one SIF file.

    6. How many SIF files can be sent by a company in one month?

      There is no limit to the number of files that a company can send out in one month.

    7. What is the minimum salary that can be processed via DMCC WPS?

      The salary and other allowances payable to the employee as agreed in the contract and what is updated in the DMCC portal should be processed via DMCC WPS.

    8. What is the maximum number of employees whose salary can be processed with one file?

      There is no limit to the number of employees whose salary is processed in one SIF file.

    9. Should End of Service Benefits be processed via DMCC WPS?

      It is not mandatory to process EOSB and gratuity payments via WPS.

    10. What are fines for evading DMCC WPS?

      There is no consequences in the year 2023. However, starting from January 2024, DMCC may implement portal sanctions and fines which will be deducted from the company’s portal account for non-compliance with DMCC WPS payments.

    How can HLB HAMT help in implementing DMCC WPS?

    • Fully complied payroll system to process DMCC WPS payroll.
    • Can assist in registering company with an authorized Exchange house in UAE.
    • System-generated SIF file as per the company’s corporate bank SIF format.
    • Uploading / Sending SIF file as per Corporate bank account requirement.
    • Share the SIF file to the Exchange house according to their required SIF format.
    • Can assist in generating WPS salary report from DMCC portal.

     

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