By Peregrine

The Qatar Ministry of Labour and Social Affairs has begun implementing a new Wages Protection System (WPS), requiring all employers to pay their employees through a bank in Qatar.

What is the Wages Protection System?
The Wages Protection System (WPS) is an electronic system initiated by the Ministry of Labour and Social Affairs and the Qatar Central Bank (QCB) to monitor and document the process of worker wage payment, with a view to ensuring that employers are completing the wage payment in a timely manner and according to the rules and conditions provided for in the Labour Law.

Under the WPS, employees must be paid in Qatari currency, to a Qatari bank account, at intervals prescribed by the Labour Law.

All employers must register with their bank in Qatar to use the WPS. If an assignee was previously paid from outside Qatar by a sending company abroad, they will now have to be paid through their Qatari sponsor company which must be registered to use the WPS at a bank in Qatar. Employers who are non-compliant risk up to one month in prison or/and a fine of between QR2,000 and QR6,000.

Action Items

  • Employers in Qatar must register for the Wages Protection System with their bank in Qatar by the end of September 2015 or risk a penalty.
  • Companies sending employees on assignment to Qatar will need to pay the assignee through the sponsor company in Qatar which must be registered to use the WPS.
  • Employers should expect a visit from the Ministry of Labour’s inspectors to explain and check compliance with the new law.