UAE New Salary Payment Rule 2026: WPS Resolution 340, Deadlines and Penalties Explained

Your salary is now due on the first day of every month. No exceptions. No grace period. That is the short version of Ministerial Resolution No. 340 of 2026.

The UAE Ministry of Human Resources and Emiratisation (MOHRE) issued the resolution on May 12, 2026. It takes effect on June 1, 2026. It replaces the previous WPS rules from 2022 and introduces a single, standardised salary deadline across the private sector.

This guide covers what changed, what stays the same, and what you need to do before Monday.

What changed

The old system (Resolution 598 of 2022) let employers set their own salary due dates based on employment contracts. If your contract said "salary paid by the 15th," that was your deadline. Employers also had a 15-day grace period before late payments triggered any action.

Resolution 340 removes both flexibilities. Starting June 1:

• Wages for the previous month must be paid on the first day of each Gregorian month.
• Any payment after the first is considered delayed.
• The 15-day grace period is gone.
• The compliance threshold rises from 80% to 85%.

For employees, this means May 2026 salaries are due on June 1. If your company paid on the 15th or at the end of the month, that schedule no longer works.

Who it applies to

The rules apply to all private sector companies registered with MOHRE. If you are licensed through a mainland authority, you are covered. Free zones that operate their own WPS (like DMCC or JAFZA) may adopt similar rules, but the resolution does not automatically extend to them.

Certain groups are excluded:

• Employees with wage disputes already in court
• Workers reported as absconding
• Detained employees or those on approved unpaid leave
• Seafarers (subject to ministry approval)
• Foreign employees of overseas firms who are paid outside the UAE
• Workers on short-term mission permits (under 3 months)
• Banks, financial institutions, places of worship, fishing boats, and public taxis owned by individuals

The 85% compliance threshold

A company is considered compliant if it pays at least 85% of total wages by the due date. This was 80% under the old rules.

An employee is treated as paid if they receive at least 85% of their entitled wage, as long as the shortfall comes from legally permitted deductions (loan repayments, court orders, etc.).

Important: the remaining 15% is still owed. The employee keeps the right to claim unpaid amounts. The 85% threshold only affects regulatory compliance, not the actual entitlement.

This creates a practical constraint: the UAE Labour Law allows deductions up to 20% of salary (or 50% in certain cases). But if you deduct more than 15%, you fall below the WPS compliance threshold and trigger enforcement.

Enforcement timeline: day by day

The resolution introduces a phased enforcement system. Actions start immediately after the due date.

Day 1: Electronic monitoring

MOHRE systems begin checking compliance on the first day of the month. If salaries are not paid, tracking starts immediately.

Day 2: Notifications and warnings

Employers who have not paid receive electronic notices and warnings from MOHRE.

Day 5: Work permit suspension

New work permits are suspended. The employer is formally notified of the violation.

Day 11: Administrative fines and reclassification

For repeated violations within 6 months, MOHRE imposes administrative fines under Cabinet Resolution 21 of 2020. The establishment is reclassified to Category 3 under MOHRE's classification system.

Day 16: Automatic labour dispute registration

For employers with 25 or more unpaid workers (or group companies with 25+ across entities), MOHRE automatically registers individual or collective labour disputes on behalf of affected employees. Work permits remain suspended.

This applies specifically to construction, transport and storage, security services, cleaning services, recruitment agencies, and domestic worker recruitment offices.

Day 21: Asset seizure and travel bans

For companies with 50+ employees or repeated violations over 2 consecutive months, MOHRE can initiate precautionary attachment of assets, issue travel bans against responsible individuals, and refer the case to the Public Prosecution.

What employers should do before June 1

The resolution takes effect next Monday. If your payroll cycle does not align with the first of the month, here is what needs attention:

• Review your payroll cycle. If you pay mid-month or at month-end, shift the schedule so salaries are credited by the first.
• Submit SIF files early. Banks recommend submitting Salary Information File batches at least 48 hours before the due date to allow for reconciliation and AML checks.
• Document all deductions. Any deduction above 15% of an employee's wage pushes you below the compliance threshold. Make sure lawful deductions (loan payments, court orders) are clearly documented.
• Check new employee setup. The exemption for new employees during their first 30 days has been removed. New hires must be enrolled in WPS immediately.
• Review outsourcing agreements. If a third party handles payroll, ensure they can meet the new deadline. The employer remains liable regardless of delegation.
• Align group companies. If you own multiple entities, unpaid workers are counted across the group for enforcement purposes.

What employees should know

For most employees, the change is simple: salary arrives by the first of the month. If your employer already paid at month-end, you may not notice any difference.

If your salary is delayed beyond the first, MOHRE now has a faster escalation path. Labour disputes can be registered automatically on Day 16 without you filing a complaint. That is a significant change from the old system, where workers had to initiate the process themselves.

The resolution does not change your underlying employment contract terms. It changes when salary must be paid and how quickly authorities step in when it is not.

What did not change

The core WPS requirement remains: salaries must be processed through MOHRE-approved systems. Employers still need to maintain payroll records and submit proof of payment.

Early payment is still fine. If you pay before the first of the month, it counts as compliant. The rule targets delays, not early payments.

The employer is still ultimately responsible for timely payment, even if payroll is outsourced.

Bottom line

Resolution 340 removes the flexibility that let some employers delay salary by weeks. The new system is simpler: pay by the first or face escalating consequences that start within days, not weeks.

For companies already paying on time, nothing changes. For those that relied on the mid-month window or the grace period, June 1 is the deadline to adjust.

The full text of Ministerial Resolution No. 340 of 2026 is published on MOHRE's website. Employers with specific questions should consult a labour law advisor.