DMCC WPS is a reality.
The Dubai Multi Commodities Centre (“DMCC”) requires all DMCC entities to have employees registered for salary transfer by the 15 February 2023.
This requirement is part of the implementation of its recently announced Wages Protection System (also known as “WPS” and for DMCC, “DMCC WPS”).
What’s WPS? What’s DMCC WPS?
A Wages protection systems is the existence and implementation of a system that requires employers to make payment of applicable wages via banking channels, exchange houses and financial organisms approved by the UAE Central Bank.
Free zones do not tend to implement Wage Protection Systems having been in place for UAE mainland entities for over a decade.
How will the DMCC implement it?
All employees are required to be registered with DMCC for such purpose by the 15 February 2023.
To do so the most important information to collect is the Employee’s IBAN, or, in its absence, the Agent’s Bank or Exchange House ID number.
Following this deadline for registration, employers will need to comply with payment obligations within the salary payment contractual obligations. Most employers pay salaries within the last 5 days of the month, as such payment will need to be completed via the WPS registered channels, monthly.
Every new employee will need to follow the same registration as soon as the Employee card is issued.
We are confident that the above information is of assistance to meet the deadline for implementation. It is always recommended to get expert assistance. For more information published in English you can visit all our publications in this link as well as the videos in English of our Managing Partner Maria Rubert.
*This publication is not legal advice but a publication for general use based on DMCC announcements.