The United Arab Emirates (UAE) has over 6.5 million employees and job seekers. If you’re a part of the labor force (or about to join), one of the critical things to check is your wage or your compensation for providing your service to an employer. This article will guide you on how to do a salary check in UAE.
Understanding salary payments in the UAE
Salary payments in the UAE are governed by the UAE Labour Law, which emphasizes the importance of timely and fair compensation for employees. This legal framework ensures that employees receive their wages on time and in full, promoting a fair working environment. Employers must adhere to these regulations to avoid penalties and ensure compliance. Understanding salary payments is crucial for both employers and employees to ensure that all parties are aware of their rights and obligations under the law. By doing so, they can foster a positive and productive workplace.
Salary Payments and Employment Contract
The employment contract is a critical document that outlines the terms and conditions of employment, including salary payments. It should clearly specify the salary amount, payment frequency, and any deductions or allowances. This transparency helps prevent misunderstandings and ensures that both parties are on the same page. Employers must ensure that the employment contract complies with the UAE Labour Law and provides a clear breakdown of the salary structure. This not only protects the rights of employees but also helps employers avoid legal issues related to non-compliance.
Wages Protection System (WPS)
The Wages Protection System (WPS) is a mandatory system in the UAE designed to ensure that employers pay their employees’ salaries on time and in full. Under the WPS, employers are required to transfer salaries directly to employees’ bank accounts or financial institutions approved by the Central Bank. This system helps to prevent salary delays and ensures that employees receive their fair compensation. By using the WPS, employers demonstrate their commitment to fair labor practices and compliance with the law, which can enhance their reputation and employee satisfaction.
Salary payments in the UAE
While the country’s labor law doesn’t specify a minimum salary, it emphasizes that employee wages should be enough to meet their basic needs. The concept of ‘basic salary’ is crucial in the UAE’s compensation structure, as it forms the foundation for various calculations, such as gratuity and job loss insurance payouts, and is specified in the employment contract, separate from additional allowances. It also boasts established guidelines and systems to ensure employees receive their wages accurately and promptly. The Ministry of Human Resources and Emiratisation (MoHRE) oversees these regulations.
According to Ministerial Resolution No. 598 of 2022, salaries are due from the first day of the month following the period specified in the employment contract. If the contract doesn’t indicate a period, employers must make payments at least once a month. An employer defaults if they do not pay wages within the first 15 days after the due date. This is the case unless the contract specifies a shorter period.
The government also mandates employers registered with the MoHRE to subscribe to the Wages Protection System (WPS). Under this system, employers must transfer salaries directly to employees’ bank accounts or financial institutions approved by the Central Bank.
The government penalizes companies that fail to adhere to salary payment rules to ensure compliance. This underscores the country’s commitment to protecting employee rights and promoting a fair working environment. Employees with unpaid or delayed salaries can contact the MoHRE.
Read: How To Calculate Gratuity In UAE (2024)?
How to do a salary check in UAE
How well you are compensated contributes a lot to your financial well-being. These are the different ways you can check your salary in the UAE.
Method 1: Check out the MoHRE website
The MoHRE offers a convenient way to check your salary online. Visit their website and click on the WPS link on the homepage. The link will lead you to the salary-checking feature. Once there, input your personal details, such as your Emirates ID number and birth date. After submitting this information, the portal will generate a detailed salary report, displaying your current salary and any deductions made.
Other employee services and features you can access on the site include your labor card and labor contract.
Method 2: Utilize available online tools
You can also use online salary calculators on various websites to estimate your salary in the UAE. Enter key details such as your job title, location and current salary into the calculator. This will provide you with an estimated salary range based on your input. Online platforms like Glassdoor, Payscale and Indeed also help estimate earnings across various professions and industries based on actual data.
Method 3: Visit the company’s website
Many companies in the UAE offer transparency in salaries. Simply visit a specific company’s website. Next, navigate to the “Careers” or “About us” section, where you can often find relevant information about employee compensation. Look for a link or section that mentions “Salaries” to access a list or overview of salary details for all employees. This resource can provide insight into the company’s salary structure and where your compensation stands in comparison.
Managing salary discrepancies
Salary discrepancies can occur due to various reasons, including errors in salary calculations, delayed payments, or unauthorized deductions. It is essential for employees to monitor their salary payments regularly to detect any discrepancies. By keeping a close eye on their pay slips and bank statements, employees can quickly identify and address any issues. If discrepancies are found, employees should report them to their HR department or the MoHRE to seek resolution. Regular monitoring and prompt action can help ensure that employees receive the correct compensation for their work.
Employees’ Risk Under Compensation
Employees who are under-compensated may face financial difficulties and may not be able to meet their basic needs. Under-compensation can also lead to decreased job satisfaction, reduced productivity, and increased turnover rates. Employers must ensure that they provide fair compensation to their employees to avoid these risks. By understanding salary payments, employment contracts, and the Wages Protection System, employers and employees can work together to ensure fair compensation and a positive work environment. Regular salary checks and monitoring can help to detect any discrepancies and prevent under-compensation, fostering a more satisfied and productive workforce.
Why check your salary?
Understanding your position in the job market is vital. By benchmarking your income against the industry’s salary norms, you can identify if your earnings are below, on par with, or above the average for your role and sector. This information is essential for negotiating salaries, seeking new opportunities, and aligning your income with your qualifications.
Across the globe, many employees risk under-compensation due to a lack of awareness about their industry’s salary norms. So, by proactively checking your salary, you avoid settling for less and position yourself to make informed decisions. Furthermore, it lays the groundwork for great financial health and successful professional development in the UAE’s thriving job market.
The UAE job market
The UAE job market is set to remain robust in 2024, according to the latest insights from Cooper Fitch’s 2024 UAE salary guide.
Despite a slight downturn in oil-related recruitment due to OPEC+ members’ decision to limit production until at least 2024, the non-oil sectors continue to bolster the nation’s economy significantly. The UAE has seen a notable decrease in unemployment, dropping from 4.3 percent in 2020 to 3.3 percent in 2022. The introduction of unemployment insurance in January 2023 has also positively impacted labor participation nationwide.
According to the report, several UAE companies expanded their headcount last year.
“A larger proportion of UAE-based organizations grew their headcount in 2023 than in 2022, and more than half of this year’s respondents intend to increase remuneration in 2024. This is positive news for job seekers in the Emirates as greater demand for talent typically results in higher salaries,” explained Trefor Murphy. He is the founder and chief executive officer of Cooper Fitch.
Beyond salaries, other factors are in the spotlight when talking about talent acquisition and retention. The report highlighted annual bonuses and the flexibility to work remotely as becoming increasingly important deciding factors among UAE employees.
Final thoughts
For a prosperous professional career, checking your salary — and knowing how it fares according to industry standards — is essential. When you do a salary check in the UAE, you can protect your rights, get properly compensated and leverage available data to make sound career decisions.
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