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JustHere | December 6, 2016

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New scheme to ensure salary payment of workers through bank transfer

New scheme to ensure salary payment of workers through bank transfer

The Government has launched a new wage system that makes it mandatory for companies to pay workers their salaries through bank transfers.

Called ‘Wage Protection System’ (WPS), the scheme is to be launched in three phases. The first phase includes companies with 500 and more employees; the second phase includes companies with 100-500 workers; while the third phase will include the rest of the companies with a workforce of 100 and below.

Meanwhile, several small businesses and hotels have told JustHere that the Ministry has been holding workshop for companies, indicating a change in the sponsorship system. An announcement is expected to coincide with International Labour Day on May 1.

The UN Special Rapporteur, François Crépeau has yet again appealed for a ban on the kafala system in a new report submitted on Friday. This follows his visit to Qatar in November last year. Instead, he recommended for Qatar to have a regulated open labour market where workers are allowed to change employers, and employers are penalised for any delay in salary payments.

Stricter monitoring

Low-income workers in Qatar are generally paid in cash which makes it easy for companies to delay or deny payment. Through the new scheme, the Ministry of Labour and Social Affairs will be able to monitor salary payments electronically.

The MOLSA along with the Ministry of Interior are developing a database of companies to be included in the WPS. Companies have also been asked to handover salary details of their employees to the Labour Ministry, The Peninsula has reported.

Among the GCC countries, UAE was the first to launch this wage system in 2009. As per the system, workers will be paid their salaries in the first week of every month, failing which companies would face legal action.

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