Method of Calculating the Wages of Workers on Piecework Basis in New Labour Law


The United Arab Emirates has become one of the world’s major business hubs, bringing top talent from all around the globe. Because of its great employment laws, standards, and regulations, the UAE is among the most efficient labour markets in the world. The latest UAE labour legislation is one such government initiative that attempts to emphasise and safeguard the respective roles of workers and employers in the UAE. Anyone who wishes to serve as an employee in a firm in the UAE must first grasp the country’s employment standards, such as how payments are classified and paid through WPS payroll, etc. Read ahead to have your queries answered about the payment of wages in the new labour law.

How to calculate the wages of employees that work on a piecework basis?


Some employees prefer to get paid on a piecework basis through WPS payroll. Also, there are some jobs that require the employer to pay for every single project or piece of work. This is completely permissible according to the provisions of the new labour law. The method of calculating piecework payment according to the labour law is not difficult i.e, the wage of the employee for a single day should be calculated by considering the employee’s workdays of six months and then finding the average amount of payment that the employee should be receiving daily on a piecework basis on average. It means that the piecework wage of an employee should not be less than the average wage of days in six months.

Can an employer transfer the worker receiving a monthly wage to piecework or other categories?

Sometimes the employees want to cover their payment types or categories from piecework to monthly wage or from monthly to weekly wage and so on. According to the provisions of the new labour law, it is completely permissible for the employer to convert an employee getting paid on a monthly basis to piecework or weekly basis and so on. The only condition is that both employees and employers should agree to it in the written contract. Additionally, the employer should consider and fulfill the rights of the employee for the period he worked in the other payment category. So that none of the entitlements of the employee remain unpaid through WPS payroll.

Does the employer need to pay wages to the employees who work on holidays?

The government of the UAE has set some public holidays that every company in the state needs to follow. The holidays are paid days unlike the other types of leaves which are completely unpaid on WPS payroll. As such, the new labour law suggests the employers not to force their employees to work on holidays. However, the labour law also considers those days when the need of the time is to work on the days off. So, it is permissible to sometimes make the employees work on holidays but the employer needs to compensate for it in either of the two possible ways i.e, the employer needs to grant the employee a leave during the workdays in an attempt to compensate for the work the employee did on holiday. If leave is not granted or if the employee does not agree to have a day off from work as compensation, then the employer needs to pay for the holiday equal to the wage of a workday in addition to the 50 percent of a work day wage.

Are there any due dates for payments of wages?

The employer is obligated to pay the worker at least per month, according to the terms of the new labour legislation and the WPS payroll processing standards in the UAE. It is determined by the type of contract and the nature of the employee’s work. Some employees are paid weekly, while others are paid on a piecework basis, and so forth. Wages are often due as the month begins. Employers can, however, pay salaries with respect to the date specified in the contract. This is due to the reason that many employees want to get paid when the month begins, while others prefer to get paid towards the end of every month. If a payment schedule is specified in the employment contract, it must be implemented. Wage payments are deemed late when the employer does not pay the workers within the first fifteen days of the due date specified in the payment plan.

Choose The Best Services


Even if you’re a worker or an entrepreneur in the UAE, it is critical that you understand and embrace the rights outlined in the new 2021 labour legislation. The new labour legislation has emphasized nearly every area of employment that you should be aware of if you work or operate in the UAE. Rather than having to spend hours searching for and learning your relevant concerns in the law articles, you can just contact specialists like Far Consulting Middle East who may well assist you in understanding your current concerns. If you are looking for the WPS payroll service, who can provide you with the finest outsourcing services. Ask specialists for the best advice.