The new system, the ‘Wages Protection System (WPS) was introduced by Qatar Government in 2015. The system guarantees that all private enterprises pay their workers the consented salaries on time. In this article, we are going to know about Qatar’s Wage Protection System in detail.
Qatar’s Wage Protection System- what is it?
WPS is a complete electronic system created by Qatar’s Ministry of Administrative Development, Labour & Social Affairs (MADLSA) and Qatar Central Bank (QCB). It observes and records the procedure of paying salaries to workers. The WPS system will process salary files through WPS accounts to credit all salaries to bank accounts/pay cards.
Is the Wage Protection System applicable to all types of businesses?
All private companies covered by the Labour Law No. (14) of 2004 are applicable under WPS. WPS does not include Embassies, QFC entities, Government & Public sector organizations.
How does the Wage Protection System work?
Follow the following guide on how the system works.
Open bank accounts for all workers:
- Qatar Central Bank has published instructions to all banks and financial institutions in the country to provide accounts for workers who have legitimate ID cards.
- Set up a new WPS account at the bank of your choice. Applications will be available both online and at the bank. You must submit a copy of the company registration and computer card with the form.
A company prepares workers’ data:
- To save data in a table-structured format, known as SIF, companies must create CSV files.
- Tables will list the employee’s name, QID, account number, and payable salaries in the serial number.
- To prepare this document, banks offer online tools called SIF (Salary Information File) Generators.
- Microsoft Excel can also be used to prepare CSV files. Then save a copy as Comma Separated Values (CSV) for future editing.
- As per the standard format, name the CSV file and share it with the bank using the bank portal or in any other format that has been agreed upon with the bank.
Company transfers salary
- Companies will transfer their WPS-beneficiary workers’ paychecks to their banks before the deadline.
Bank checks balance & transfers to workers’ accounts
- The bank will check data and see if the firm has sufficient funds in its account.
- Employees will be notified if there is sufficient balance on their accounts and their salaries will be credited.
- The bank will contact the company if the balance is not sufficient.
Monitoring by Ministries
In Qatar, all banks have electronic systems for transferring employee wages. It is implemented in such a way that MADLSA and the Ministry of Interior can monitor and ensure that all WPS-beneficiary workers receive their salaries.
Ministry officials simply plugged the ‘Card Number’ of a company into their computer systems, and soon a screen displayed listing the number of workers that company has, their salaries, and whether or not they have been paid.
As part of the labor ministry, a specialized inspection unit keeps tabs on companies and ensures they follow the WPS. Inspectors, trained in their job, would catch violations, if any, and bring the violating company to justice.
- Within 7 days of the due date, all companies should pay their workers using the WPS.
- Reconciliation will only be possible if the employee returns his complaint of delayed payment.
- Under the amended labor law, non-compliance can even lead to prosecution.
Who is responsible for workers’ Wage Protection System ?
Companies must register their workers with WPS. All personnel information, including salary details, must be accurate by the company. While new hires will not be given a grace period, the company will give them one month to organize their visas and bank accounts. The company must open a bank account for its workers.
Punishments for Non-compliance with Wage Protection System
If companies fail to comply with the rules, they may be subject to punishment, including rejection of work visas and denial to endorse workers’ job contracts.
Companies could be fined up to QAR 6000 per infringement and managers could be jailed if the system is not implemented correctly.
If you fail to comply or submit incorrect filings, the company’s visa quota may be reduced or blocked, and future hiring may be prohibited. If there is a contravention, the MADLSA will require a visit and proof that the WPS is applied effectively and correctly.
Wage Protection System Pages of Major Banks in Qatar
- Ahilbank WPS Page
- Barwa Bank WPS Page
- Commercial Bank of Qatar CBQ WPS Page
- Doha Bank WPS Page
- Qatar Islamic Bank- QIB WPS page
- Qatar International Islamic Bank- QIIB WPS Page
- Qatar National Bank- QNB WPS Page