The UAE Ministry of Human Resources and Emiratisation (MOHRE) has issued Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System (WPS), introducing updated compliance obligations and stricter enforcement measures applicable to private sector establishments across the UAE. The Resolution will come into force on 1 June 2026.

Unified Wage Due Date

The Resolution establishes a unified due date for salary payments, whereby wages for the previous month become payable on the first day of each Gregorian month. Any payment made after this date shall be deemed delayed. All private sector establishments registered with MOHRE are required to process salary payments through the approved Wage Protection System (WPS) or any other system approved by the Ministry.

Minimum Compliance Threshold

For WPS compliance purposes, an establishment will be considered compliant if it transfers at least 85% of the total wages due to its employees within the prescribed due date.

Similarly, an employee will not be considered unpaid where at least 85% of their wage has been received and any remaining deductions are legally justified and documented in accordance with applicable laws.

Escalating Enforcement Measures for Delayed Salary Payments

The Resolution introduces a structured escalation mechanism against non-compliant establishments. Beginning from Day 2 after the salary due date, the Ministry of Human Resources and Emiratisation (MOHRE) will issue electronic notifications and reminders to establishments that fail to pay wages on time. From Day 5, MOHRE may suspend the issuance of new work permits for the establishment. From Day 11, in cases of repeated violations within six months, administrative fines may be imposed and the establishment may be downgraded to the third category classification under MOHRE regulations. From Day 16, for establishments employing 25 or more workers in specified sectors, MOHRE may automatically register individual or collective labour disputes and suspend the issuance of work permits. From Day 21, further measures may include referral to the Public Prosecution in certain repeated violation cases, precautionary attachment over the establishment, travel bans against responsible persons, issuance of executive instruments for wage recovery, and referral of collective labour disputes.
 

Exceptions Under the WPS Calculation

Certain categories of employees are excluded from Wage Protection System (WPS) compliance calculations. These include employees with wage-related court claims, employees reported absent from work, employees serving custodial sentences, employees on unpaid leave, certain maritime workers, foreign employees receiving salaries outside the UAE, and holders of mission work permits not exceeding three months. In addition, specific exempted sectors and entities, such as banks and places of worship, are also excluded from the WPS compliance framework.

Notwithstanding the ability of employers to appoint third parties to process salary payments, the Resolution expressly confirms that the employer remains fully responsible for ensuring that wages are paid in a timely manner and in full compliance with the applicable laws and regulations.

Conclusion

Ministerial Resolution No. 340 of 2026 reflects the UAE’s continued efforts to strengthen wage protection mechanisms, enhance labour market stability, and ensure timely salary payments across the private sector. Employers are advised to review and update their payroll practices and internal compliance procedures ahead of the Resolution’s effective date on 1 June 2026.

Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.