WPS (Wage Protection System) in Qatar | An Overview

WPS is the acronym for Wage Protection System which is a system ensuring that all private companies pay their employees their promised wages on time and regularly. The WPS Qatar came into practice in 2015. It is one of the Payroll Services in Qatar that gives the employees relief from the inconvenience of a possible delay in salary disbursements.

What Is WPS Qatar?

Wage Protection System in Qatar Introduced in collaboration with Qatar’s Ministry of Administrative Development, Labor and Social Affairs (MADLSA) and the Qatar Central Bank (QCB) in the year 2015, WPS Qatar or Wage Protection System is an electronic system that ensures that all private companies in the countries pay their employees their salaries on time regularly. The process, details, and documents of the salary of employees are monitored through this system. Through WPS, the salary files of the employees are registered and then processed to their respective bank accounts or pay cards.

Which Types of Companies Are Covered for the WPS System in Qatar?

According to the Qatar Labor Law (Law No. 14 of 2004), the Wage Protection System shall apply to all private organizations in the country.

However, government and public sector companies including the embassies and QFC entities are not covered under the WPS system in Qatar.

Also read : WPS (Wage Protection System) Payroll in UAE.

How Does the WPS Qatar Work?

The step-wise guide on how the WPS Qatar works is explained below:

Step 1. Opening of Bank Accounts for the Employees

Central Bank of Qatar issued circulars to the financial institutions of the country to open bank accounts for all employees holding a valid ID card to assure that all employees have an account for their salary transactions. Employers can register for a WPS account with any local bank in Qatar. The enrolment form for WPS registration is available online (local bank websites). Employers need to submit a copy of their enrolment form along with the company registration card and the computer card.

Step 2. Preparation of Employees’ Data

The second step for employers is to prepare the SIF or Salary Information File of all employees. The SIF is a CSV file that is prepared in a table-structured format as advised by the Wage Protection System Qatar regulations. The Salary Information File must contain the following:

• QID (Qatar Identity Card) of employees
• Account Numbers (IBAN)
• Payable Salary in serial number or digits

Some local banks of Qatar offer tools that automate the process of generating the SIFs in the exact required format.

Step 3. Salary Transfers

Once all the details of employees’ salaries are submitted, employers are supposed to make transfers for the salaries of employees ahead of the due date through WPS. WPS in Qatar deadline states that all employers subject to the Qatar Labor Law are required to transfer their employees’ pay to Qatari banks within seven days of the due date. The WPS system in Qatar has resulted in more timely salary payments and a reduction in a variety of wage violations.

Step 4. Verification from the Bank and Salary crediting

After the employers have made the transfer, the bank will verify if the company has a sufficient balance amount in their account and proceed with crediting the salary into the employees’ accounts. In case of an insufficient balance amount in the employer’s bank account, the bank will inquire the employer.

What Are the Violations and Penalties for Non-compliance With the WPS System in Qatar?

The regulations and laws regarding the WPS System in Qatar are stern and predefined for all private organizations therefore non-compliance with the guidelines of the Wage Protection System Qatar may lead employers towards unpleasant repercussions. Where the WPS in Qatar deadline defines the period within which employers must transfer the salaries of their workers, other circumstances of non-compliance and their consequences could be:

• Failure to follow the guidelines could result in penalties such as the denial of work permits and the refusal to ratify employee contracts.
• Failure to comply or the submission of improper files may result in corporate visa limitations, decreased or blocked visa quotas, and a ban on future employment proceedings.
• If the system is not implemented to the requirements, companies might face fines of up to QAR 6,000 per violation, and company management could face imprisonment.

Visits to Qatar’s Ministry of Administrative Development, Labor, and Social Affairs (MADLSA) and verification that the WPS has been administered properly and appropriately will be required to resolve any violations.

Conclusion

Payroll Middle East is the Middle East’s famous Payroll Outsourcing company providing clients with its noteworthy Payroll services in Qatar, UAE, Kuwait, Saudi Arabia, and Oman. We at Payroll Middle East commit ourselves to delivering quality and law-compliant payroll services to the companies who choose to partner with us. If you are looking for a Payroll Service for your company in Qatar or need more guidance on WPS Qatar, call us today and avail a free consultancy session now!