Executive summary

On 12 May 2026, the United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation (MOHRE) issued Ministerial Resolution No. 0340 of 2026 (Resolution), effective 1 June 2026, replacing and expressly repealing Ministerial Resolution No. 598 of 2022 concerning the previous Wage Protection System (WPS) and any conflicting provisions. The latest resolution aims to strengthen compliance and ensure timely wage payments across private sector establishments.

The Resolution is expected to enhance transparency in wage payments and reinforce protections for workers by establishing a clear, unified salary deadline for private sector employers in the UAE.

It strengthens the UAE's WPS by standardizing wage payment timelines, defining compliance thresholds and introducing a clear escalation framework for noncompliance across private sector establishments. It excludes certain worker categories and sectors from the WPS scope.

Detailed discussion

Background

The Resolution, which will be published in the Official Gazette, aims to strengthen payroll compliance, improve wage payment discipline and introduce a structured escalation framework for delayed payments across private sector establishments.

Highlights of the Resolution

• Fixed salary date: Wages must be paid no later than the first day of each Gregorian month for the previous Gregorian month.
• Mandatory WPS usage: All payments must be processed via WPS or MOHRE-approved systems with proof of payment.
• 85% compliance rule: Employers are compliant if ≥85% of the total wages are paid on time.
• Strict escalation timeline: Noncompliance triggers penalties from Day 2 alerts to Day 21 legal action (fines, permit suspension, prosecution).
• Defined exclusions: Certain worker categories (e.g., involving legal disputes, unpaid leave, absconding cases) and specific sectors (e.g., banks, places of worship, and certain temporary or foreign employment arrangements) are excluded from the scope of WPS.
• Effective date: The Resolution applies from 1 June 2026, replacing the previous WPS resolution.
• Delegation allowed: Employers may delegate wage payment responsibilities, however; they remain fully responsible for compliance and timely wage payment obligations.
• Proof of payment requirement: Employers must submit wage payment evidence to the MOHRE.

Implications

Employers should ensure that wage payments are processed through the MOHRE WPS or other MOHRE-approved systems, with payments submitted via WPS files through country-registered banks or other approved platforms. It is important to communicate changes and compliance requirements to payroll and human resource teams to avoid penalties. In addition, at least 85% of the total wages should be paid on time to meet compliance thresholds, and all required supporting documents and data should be submitted to the MOHRE to evidence wage payments in accordance with the prescribed rules.

Regarding payment timelines, the Resolution introduces a structured enforcement timeline for delayed wage payments, beginning with monitoring from the wage due date through electronic systems, followed by alerts and notifications issued to employers on Day 2. By Day 5, noncompliant employers face suspension of new work permits. Administrative fines and downgrading to the Third Category are imposed on Day 11 for repeated violations within a six-month period. On Day 16, labor disputes are automatically initiated, accompanied by broader permit suspensions particularly where 25 or more workers are affected in all sectors or in specified sectors. Finally, by Day 21, legal escalations follow, including asset attachment, travel bans and referral to the public prosecution.