The government of the UAE launched the Wage Protection System (WPS) to ensure that UAE workers are paid in time for their work and the amounts they receive are based on their employment contracts.

FirstBit ERP provides the functionality that helps the company seamlessly integrate with WPS when paying the compensation to the employees.

WPS Setup

To turn on the functionality, select the Enable WPS (Wages Protection System) option on the Administration > Settings > HR and Payroll form.

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.

The bank account specified in the Default Bank Account field will be used by default for paying the salaries. Only bank accounts for which the Use for WPS check box is selected on the Money > Master Data > Bank Accounts form are available for selection.

Make sure that this bank account is included in the WPS agreement signed with the bank. For details, refer to Entities.

Accrual and Deduction Types

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 form.

Generally, 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.

Employees

For each employee, on the HR and Payroll > Master Data > Employees form, make sure that the identifier of the labor card is specified in the Labor ID field. Also, select the Include in WPS File option.

In the Bank Account field select the employee's bank account to which the employee will receive the payments. Only bank accounts for which the Use for WPS check box is selected on the Money > Master Data > Bank Accounts form are available for selection.

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 WPS 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.

The file will serve as payment instructions for the entity's bank and for banks of employees. Also, the data is used by authorities (Ministry of Human Resources and Emiratization -MOHRE) for cross-checking and for collecting statistics on labor.

Creating the Data for WPS file

For creating a new WPS file, open the following form: HR and Payroll > Service Tools > WPS Files and click Create.

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.

Click the Fill Employees (by department) button and check that all the employees are listed.

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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