UAE salaries must now clear the Wage Protection System by the 1st of the month
Ministerial Resolution No. 340 of 2026 replaced the old contract-based salary due date with a single federal deadline and removed the 15-day grace period. Payroll teams paying mid-month are the most exposed.
Photo: Tim.Reckmann (CC BY-SA 3.0)
The Ministry of Human Resources and Emiratisation has rewritten the rules on when private-sector salaries must be paid. Under Ministerial Resolution No. 340 of 2026, in force since 1 June 2026, wages for a calendar month must reach employees' accounts through the Wage Protection System by the first day of the following month. Anything later counts as delayed.
The resolution repeals Ministerial Resolution No. 598 of 2022. Two flexibilities disappear with it: due dates tied to individual employment contracts, and the fifteen-day window employers previously had before a late payment was flagged. There is now no grace period at all.
Compliance is measured on a dual test. An establishment is treated as compliant where at least 85% of total wages due are transferred by the deadline, and an individual employee is treated as paid where they receive at least 85% of their entitled wage, provided any shortfall reflects lawful deductions under Federal Decree-Law No. 33 of 2021. The previous threshold was 80%.
Enforcement runs on a published ladder that begins within days of a missed deadline and escalates towards work-permit suspension, fines and referral for prosecution. DIFC and ADGM operate their own regimes and sit outside the federal system.
What it means for employers
- Move any mid-month payroll run forward so funds clear by the 1st; early payment is recognised as compliant.
- Check the 85% company-level and employee-level thresholds against your own deduction practices.
- Blocked work permits are the practical risk for employers who recruit continuously — a WPS flag can stall a whole mobilisation pipeline.
Related pages
Summarised by the Horizon GCC team. Original reporting: Morgan Lewis
This briefing is general information, not legal advice. Confirm current requirements with the relevant authority before acting.
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