x Abu Dhabi, UAETuesday 25 July 2017

Paying UAE employees in cash is illegal

Companies must register with a bank or an exchange bureau to transfer funds to their workers.

The Wages Protection System was introduced by the Central Bank and the Ministry of Labour in 2009 to protect workers' salaries.

Under the system, it is illegal for companies to pay workers in cash. Companies must register with a bank or an exchange bureau to transfer funds to their workers.

Those who register with an exchange will pay a total salary bill to the selected exchange through a bank transfer every month.

"The amount is then confirmed by the exchange," said Sudhir Shetty, head of operations at UAE Exchange. "Exchanges will have the full list of employees and details.

"The procedure varies from exchange to exchange. Some require the workers to go to the bureau and collect the salary, whereas other exchanges send representatives to the company and hand over the money directly."

At UAE Exchange, salaried workers are provided with ATM cards so they can withdraw their wages from machines at branches around the country.

* Nadeem Hanif