Wage Protection System implemented for DMCC Free Zone

IMPACT — MEDIUM

Emirati authorities recently implemented the Wage Protection System for companies registered in the Dubai Multi Commodities Center Free Zone.

Key Points:

• Companies registered with the DMCC Free Zone are now required to pay foreign nationals who hold a valid or expired employment visa or Personal Identity Card through the WPS.
• Companies must register new employees for salary transfer immediately after the Company Employment Card is issued or after the PIC application is closed.
• Companies can only pay salaries in the UAE’s national currency.
• More information regarding the implementation of the WPS is available here.

Additional Information: Emirati authorities will not fine companies that do not comply with this requirement for 2023; however, beginning in 2024, companies that do not pay their employees through the WPS will be fined.

BAL Analysis: Emirati authorities will require companies registered with the DMCC to pay employees through the WPS to ensure foreign workers’ wages are protected.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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