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10 October 2016

United Arab Emirates issues changes to Wage Protection System (WPS) for employers in UAE

The Ministry of Human Resources and Emiratisation, formerly the Ministry of Labour (the Ministry), has recently issued a Decree which reiterates that the Ministry will stop issuing work permits to companies that have not registered for the Wage Protection System (WPS) until the registration for the WPS is completed. Furthermore, the Decree sets out different penalty regimes depending on the size of a company and the extent of the delay in making salary payments and levies penalties. The Decree takes effect from October 3. Employers in the UAE are advised to ensure that they are fully compliant with the regulations of WPS.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1719

Document ID: 2016-1719

 

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