What Every Small Business Needs to Know about Remittance, Payroll Solutions, and WPS in the UAE

Remittance and payroll solutions in the UAE are fiercely competitive, allowing companies to send and receive money overseas and within the country through various payment methods. According to the Central Bank, exchange houses dominate remittances, accounting for nearly three-quarters of all remittance transactions.

When sending money from an exchange house, it is always wise to try and haggle down to the best possible rate. Also, if you’re transferring a large amount of money or if a company expects you to be a regular customer, then, the best option is to open a corporate remittance account with an exchange house like Al Ansari Exchange in the UAE. Their expansive payment network connects with over 250 banks and agents, with over 500,000 branch locations globally, enabling you to send and receive money within minutes. The exchange house also has a wide range of remittance products and premium services for your company to ‘Grow from Dubai’.

Local Remittance

Local Bank Deposit: Al Ansari Exchange can facilitate local bank account transfers to any bank account in the UAE with utmost security.

Local Cash Payout: Cash payout service is available within the UAE for corporate clients who wish to offer convenient payment options to their customers by visiting any Al Ansari Exchange branch to collect their payments.

International Remittance

International Bank Account Transfer: Wire transfer services enable funds to be sent anywhere in the world, at competitive rates, through an extensive global network of banks and agents. Bank transfers allow direct credits to customers’ bank accounts in most countries.

International Cash Payout: The overseas cash payout service is available to corporate clients who wish to offer their customers convenient payment options by allowing them to visit any branch of specific Al Ansari Exchange agents to pick up their payment.

If you possess a Meydan Free Zone license, you can benefit from special rates on remittances, currency exchanges, payroll solutions, WPS, and offshore salary payments at Al Ansari Exchange. In addition, to help you ‘Grow from Dubai’, they offer free membership creation charges and no monthly or annual membership fees.

To make payments and wage distribution easier, the government of the UAE has launched the Wage Protection System (WPS). Since 2009, the WPS has been integral to the country’s labour relations. Understanding the system is essential, as employers may be fined and punished for failing to comply with specific regulations.

Basically, the WPS is an electronic wages transfer system that oversees the payment of workers’ salaries in the UAE. In other words, it ensures that UAE workers are paid their wages and salaries on time (based on their employment contracts). In addition, it has an electronic database where UAE companies must upload their Salary Information Files for the MOHRE and the Central Bank of UAE to confirm and validate every detail before permitting the onward transfer of money to employees.

Al Ansari Exchange developed and launched its corporate payroll solution in the UAE as a part of its continuing efforts to help improve the salary disbursal process. The solution was implemented in compliance with the UAE’s Ministry of Labour directives under the Wages Protection System (WPS) initiative. Under the new payroll solution, Al Ansari Exchange issues two types of cards for salary payments. Employers can opt to use either the Payplus or Payroll cards to withdraw an employee’s salary. If you have a Meydan Free Zone license, download and fill out the WPS Form and submit it with the documents.

Some strict penalties exist for companies that withhold wages in the UAE under the WPS. For non-payment of dues, a company may face the following penalties.

Penalties for enterprises employing over 100 employees

The following penalties apply if a small or medium-sized private sector firm with over 100 employees fails to pay their employee dues within ten days:

• The company will not get any work permits starting from the 16th day from the date of delay in wages.
• Companies that have delayed wages for more than a month from the due date will be referred to the judicial authorities for further punitive measures.
• If the company owner has other registered companies with WPS in the UAE, similar penalties will apply to all of them.
• The owner(s) will not be able to register any new company.
• Employees’ bank guarantees will be liquidated.
• The company will face downgrading to the third category.
• Workers will be permitted to find other job opportunities.

WPS penalties for companies with a workforce of fewer than 100 employees

SMEs with fewer than 100 employees who fail to pay their employees’ salaries within 60 days are liable for penalties such as:

• Barred from issuing work permits.
• The company will be exposed to fines by MoHRE.
• Referral to court for further proceedings.

Companies with more than 100 employees will be penalized if they fail to pay wages twice a year.

Why Set Up Your Business In Meydan Free Zone?

Meydan Free Zone, located in The Meydan Hotel, is 15 minutes from Dubai International Airport and has convenient access to Downtown Dubai and Sheikh Zayed Road.

Getting a premier location for a business address is one of the advantages of establishing your firm with Meydan Free Zone. Other advantages to establishing a business in a free zone include the absence of taxes. Our mission at Meydan Free Zone is to assist companies in establishing themselves and growing into profitable businesses. Our consultants will help you with all areas of your Dubai business setup, allowing you to focus on delivering the best products and services while adhering to UAE’s financial and labour laws.