The government of the UAE launched the Wage Protection System (WPS) in 2019. Basically, the WPS ensures to ensure that UAE workers are paid in time for their work and the amounts they receive are based on their employment contracts.
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To turn on the functionality, select the Enable WPS (Wages Protection System) option on the Administration > Settings > HR and Payroll form.
Also, in In the WPS File Directory field on the same form, select a directory (folder) on a local or network computer to keep the generated WPS files. For more information, refer to Settings: HR and Payroll.
Also, make sure that the master records for Entities, Employees and Accrual and Deduction Types are configured for use with the Wages Protection System as described in the sections below.
Entities
Make sure that on the Accounting > Master Data > Entities form, information about the entity's labor card registered with the UAE Ministry of Labor is provided in the Labor Card Number field.
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For each type of accruals (earnings) and deductions that are used in employee contracts and should be included in WPS files, select the Use for WPS option on the HR and Payroll > Master Data > Accrual and Deduction Types Types form.
With the Use for WPS check box selected, choose whether this accrual or deduction will be used each month (the Fixed radio button) or sometimes (the Variable radio button). For example, the fixed part of the pay can include salary, while the variable part can include bonuses, overtime, payments for sick leaves and vacations.
If for an accrual or deduction type you selected Variable, in the Variable Amount Type field you must specify the type of variable payments from the following optionsGenerally, the payments to employees based on accrual and deduction types are divided into the following two groups:
- Fixed payments
- Variable payments
Variable payments can be of the following types:
- Housing Allowance
- Conveyance Allowance
- Medical Allowance
- Annual Passage Allowance
- Overtime Allowance
- Leave Encashment
- All Other Allowances
Choose whether each accrual or deduction type is considered as fixed payment (the Fixed radio button) or variable payment (the Variable radio button).
For variable payments, select the type in the Variable Amount Type field.
For more information, refer to Accrual and Deduction Types.
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Note. Make sure that the bank account specified for the employee is approved and authorized by the Central Bank to be used for payments through the WPS system.
For more information, refer to Employees.
Generating
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WPS
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files
Once the payroll calculation for a specific period is completed and the employees earnings are calculated based on employment contracts, work schedules, vacations, sick leaves, other absences, you can generate a new WPS file for this period.
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If you need to include the employees of all departments, do not specify the department. Otherwise, create WPS files on department basis.
Make sure that , in the Bank Account field the entity's bank account intended for WPS is shown. You can select another account for WPS.
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Check that the Bank Routing Code field shows the correct routing code.
Save the document , then click Save WPS file on the toolbar.
For more information, refer to WPS Files.
The WPS File Contents
Generated WPS files are saved to the local or network directory specified on the Administration > Settings > HR and Payroll form.
The file includes the following three types of lines:
- EDR line presents the summary data for an employee including the employee 14-digit labor card number, employee bank account number (IBAN) , fixed and variable payment amounts.
- EVP line contains explanation of the sum of variable amounts (included in the corresponding EDR line as variable payment amount) with variable amounts listed by their type.
- SCR line presents the total for the file.
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