Introduction Of The Wage Protection System In Qatar

Qatar's Ministry of Labour and Social Affairs (MoLSA) and the Qatar Central Bank (QCB) are introducing Wage Protection System (WPS) and companies must be compliant by 3 November 2015.

In line with the systems used in other Gulf Cooperation Countries (GCC), the WPS in Qatar is expected to strengthen company compliance with the labour law, and reduce the number of payroll-related legal disputes as employees will receive their salaries on time. The WPS will see MoLSA monitor and control all salary payments with the support of the QCB, and these payments will be compared to official records such as visa quota and visa numbers, employment contract and salary details to ensure the correct salaries are paid to holders of valid visas. Expatriates receiving a salary in a foreign country will be required to open a local bank account and will receive the salary in Qatari riyals.

All companies must register their employees with WPS. It's the employer's responsibility to ensure all personnel information is correct, particularly salary details. There will be no grace period for new joiners, however one month is given to arrange the visa and bank account for each employee. It is the duty of the employer to open a bank account for its employees.

Consequences of non-compliance

Companies will face fines of up to QAR 6,000 per infringement and company managers could face imprisonment if the system is not implemented as per the regulations. Failure to comply or submission of incorrect filings could lead to company visa restrictions, visa quotas being reduced or blocked and the company being banned from future hiring. The procedure to address any contraventions will require visits to the MoLSA and proof that the WPS has been applied effectively and correctly.

Steps to WPS compliance

Companies can enrol in the WPS-system by registering via their local bank. The one-off registration involves submitting a prescribed enrolment form with a copy of the company registration and computer card. Salaries can be processed either through online banking (every bank will have different requirements) or through the submission of an excel file, which must be converted to a SIF file. The most critical part of the WPS process is the actual transfer file, which must be...