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.
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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.
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.
The step-wise guide on how the WPS Qatar works is explained below:
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.
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:
Some local banks of Qatar offer tools that automate the process of generating the SIFs in the exact required format.
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.
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.
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:
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.
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With a vast experience of 10 years, Jean Rodas is a specialist in managing all aspects of Payroll and HR. Within Payroll, she has comprehensive knowledge in areas such as computation of final settlement, payslips, WPS registration, salary transfers, leave trackers, and end of service benefits among others, which she has successfully carried out for clients from diverse industries.