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29 March 2024

Jafza implements Wage Protection System

Ibrahim Aljanahi, Dy. CEO Jafza (SUPPLIED)

Published
By Staff

Jebel Ali Free Zone Authority (Jafza) has adopted and implemented the Central Bank’s Wages Protection System (WPS) to secure timely payment of wages to thousands of people working in free zone companies, making it the second regulatory authority for the system in the country, after the Ministry of Labour.

With the introduction of the new initiative, Jafza and the Central Bank will streamline and guarantee the timely payment of wages to free zone employees by their employers and effectively monitor the process to ensure transparency and security.

The model adopted by the Central Bank is one where information flows from the employer to one or more of the contracted agents for payment of the wages to their employees. Funds from the employers are secured by Central Bank prior to dispatching the wages information to the agents. The system empowers Central Bank and Jafza with the functionality that would allow effective monitoring of the payment of wages by the employers to their employees. The key steps in the complete cycle are registration, funding of wages, payment of wages, refunds and settlements, and reporting. 

Employers can choose any registered agents, namely banks, money exchanges and other financial entities to facilitate payments and provide services to its employees.

Commenting on the move and reiterating the free zone’s commitment to supporting Government initiatives, Ibrahim Aljanahi, Jafza Deputy CEO said: "Our collaboration with the Central Bank and implementation of WPS is a reflection of our deep commitment to not only provide the most efficient services to our business community, but also to support Government initiatives. We are determined to enhance transparency and operational efficiency and lead in the adoption of technology and services that are beneficial to our customers. We view this system as a public service that will ultimately enrich the business environment in Jafza.”

Fatma Salem, Executive Vice President & Commercial Director at Jafza, said: “Free Zones in general are dynamic but complex organisations.  Jafza in particular focuses on right integration of people, processes and technology to sustain its dynamism. By partnering with the Central Bank, we have found safe, secure and robust mechanism that provides a vital solution for salary payments in the free zone and provides much-needed protection to workers.”

Currently Jafza houses over 6,700 companies who employ more than 115,000 workers, both skilled and unskilled. The new facility will safeguard the rights of these employees and significantly reduce defaults on wage payment, labour disputes and other related issues. Although currently the system has 174 registered companies, the free zone expects full adoption within one year.