QATAR: New Wages Protection System Introduced

September 25, 2015

On 18th August, The Qatar Ministry of Labour and Social Affairs introduced the Wage Protection System (WPS). This is thought to specifically protect those working in the Private Sector on 2022 World Cup-related projects.

The WPS is an electronic system controlled by the Ministry of Labour and Social Affairs and the Qatar Central Bank (QCB) to ensure that employers are completing the wage payments in accordance to the rules and conditions provided for in the Labour Law.

The aim of the Wage Protection System is to ensure that migrant labourers receive their salaries online through banking channels. Under the WPS, worker”s wages must be paid in Qatari currency, to a Qatari bank account, and the regulations stipulate that the wages must be paid twice a month or monthly.

Where a company has employees on assignment to Qatar, they will be required to pay the assignee through the sponsor company in Qatar. The sponsoring company must be registered to use the WPS.

To avoid penalties, all Employers in Qatar must register locally with their bank for the Wages Protection System. Compliance with this new law will be monitored by the Ministry of Labour”s inspectors, who will be carrying out compliance visits to ensure compliance. Employers not registered by the End of September 2015 will also be at risk of receiving penalties.

Fines of between 2,000 and 6,000 Qatari riyals will be issued to Employers who fail adhere to the requirements, such employers may also be banned from recruiting new staff.

If you require further guidance or advice on how this will impact on your assignees in Qatar please do not hesitate to contact us.