WPS in the UAE (2026): The New Rules From 1 June — Salary Due Date, the 85% Rule and Penalties

On 1 June 2026, MOHRE's Ministerial Resolution No. 340 of 2026 replaced the 2022 Wage Protection System rules (Ministerial Resolution No. 598 of 2022, now repealed). It sets one due date for every private-sector salary, a written 85% compliance test, and a day-by-day timetable of what MOHRE does when wages are late — from alerts on day 2 to, for larger employers and listed sectors, a travel ban and Public Prosecution notification on day 21. This guide is built on the resolution's own text, read on 25 October 2026.

What is WPS in the UAE?

Quick answer: The Wage Protection System (WPS) is the electronic salary-payment system the Central Bank of the UAE implemented in 2009 for the Ministry of Labour, now the Ministry of Human Resources and Emiratisation (MOHRE). Wage information flows from the employer to contracted agents that pay the employees, the Central Bank secures the employer's funds before the agents receive the wage information, and the system feeds the payment data to the labour regulator so it can check that wages are paid. Since 1 June 2026, every establishment registered with MOHRE must pay its workers through WPS (or another system MOHRE adopts) no later than the 1st of each month, for the previous month.

A "WPS salary" is simply a salary paid through this system — the route MOHRE monitors.

What changed on 1 June 2026

The 85% test is how MOHRE measures compliance, not a discount on wages: the resolution applies it "without prejudice to the workers' right to their full entitled wages". MOHRE's Undersecretary for Labour Market and Emiratisation Operations is to issue a procedural guide for applying it (Art. 6).

UAE salary delay rules: what happens when salaries are late

Annex 1 of the resolution sets out what MOHRE does, counted from the due date (the 1st):

The resolution doesn't print a fine amount — it applies the fine "prescribed under" Cabinet Resolution No. 21 of 2020 — so confirm the current figure with MOHRE (600590000) before relying on one.

What a third-category downgrade costs

MOHRE's classification sets your work-permit fees: u.ae lists AED 250–3,450 depending on the company's category, and for a two-year renewal Cabinet Resolution No. 37 of 2022 lists AED 250 (Category 1), AED 1,200 (Category 2) and AED 3,450 (Category 3). A repeat WPS delay within six months moves the establishment into the third category on day 11 — the top rate on every permit it renews. See the MOHRE company classification guide and the labour card guide.

Who is excluded from WPS (Article 4)

The resolution excludes these from the WPS count:

1. A worker whose wage claim has been referred to the competent court, or who holds an executive instrument for it — within the limits of the wage or period claimed
2. A worker with an absconding report filed against them, while the report is valid
3. A worker whose liberty is restricted by an order or judgment, while they cannot work — if MOHRE is notified with supporting documents
4. A worker on approved unpaid leave — if MOHRE is notified with the required documents
5. Seafarers working on ships — on the establishment's request, as MOHRE decides
6. Foreign workers of foreign establishments (or their UAE branches) who are paid outside the UAE — on the establishment's request and with the workers' approval
7. Workers on mission work permits of up to three months
8. Fishing boats owned by individual UAE citizens
9. Public taxis owned by individual UAE citizens
10. Banks and financial institutions
11. Places of worship

Cases 3 to 6 depend on a notification or a request to MOHRE — file it rather than skip a payment and explain later.

Staying compliant in practice

For every 2027 payroll, renewal and holiday date in one place, get the free UAE Employer Compliance Calendar 2027 (PDF).

• Pay by the 1st, not "around month-end". The due date is the same for everyone; agree your salary run and your bank or agent's cut-off so the transfer is made no later than the 1st.
• Keep the 85% margin honest. Lawful deductions can explain a gap of up to 15% for a worker; an unexplained shortfall can't.
• Tell MOHRE about unpaid leave and detention cases (with documents) so those workers are excluded under Article 4.
• Using a payroll provider? Give MOHRE the delegate's details and contract. If the provider pays late, the measures still apply to your establishment.
• Watch day 5. The first hard consequence — no new work permits — arrives five days after the due date, which can stall a hire or a transfer mid-process.

WPS also touches your Emiratisation file: Nafis eligibility includes a salary paid through WPS or another approved system. The Emiratisation compliance guide covers that side, and ILOE unemployment insurance is the other employee-level scheme worth calendarising alongside WPS.

Does WPS apply to free-zone companies?

Resolution 340/2026 applies to establishments registered with MOHRE. A free-zone company registered with its free-zone authority should check that authority's own wage-payment requirement.

Why ZETUP PRO?

We don't run your payroll — we keep the government side of it clean: WPS setup coordination with your bank, contract-amendment filings, establishment-card renewals on time, and resolving WPS holds at MOHRE before they become permit suspensions. Scandinavian transparency, published pricing. That work sits inside our ongoing PRO services.

Frequently Asked Questions

Q: What is WPS in the UAE? A: The Wage Protection System — the electronic salary-payment system the Central Bank of the UAE implemented in 2009 for what is now MOHRE. Employers pay wages through it via contracted agents, and the payment data lets MOHRE check that wages are paid on time.

Q: What are the new WPS rules from 1 June 2026? A: Ministerial Resolution No. 340 of 2026. Salaries are due on the 1st of each month for the previous month; an establishment is compliant if it transfers at least 85% of total wages by then; and late payment triggers a fixed timetable — alerts from day 2, work-permit suspension on day 5, a fine and a third-category downgrade for a repeat violation on day 11, then labour-dispute, enforcement and travel-ban measures on days 16 and 21 for establishments of 25 or 50+ workers and listed sectors (Public Prosecution only for 50+ worker establishments that repeat within two consecutive months). It repealed Ministerial Resolution No. 598 of 2022.

Q: When must salaries be paid under WPS? A: No later than the 1st of each Gregorian month, for the previous month. Any payment after that date counts as a delay.

Q: What is the 85% rule? A: An establishment counts as compliant if it transfers at least 85% of the total wages due by the due date, and a worker who receives at least 85% of their wage is not counted as unpaid when the difference comes from lawful deductions. Workers keep the right to their full wages.

Q: What happens if a company pays salaries late? A: MOHRE monitors from the due date, sends alerts from day 2 and suspends new work permits on day 5. A repeat violation within six months brings an administrative fine and reclassification into the third category on day 11. On day 16, establishments with 25 or more workers in any sector — or one owner's establishments with 25 or more unpaid workers in total in construction, transport and storage, security, cleaning, recruitment agencies or domestic-worker recruitment offices — face automatic labour-dispute registration and work-permit suspension. On day 21, establishments with 50 or more workers, one owner's establishments with 50 or more unpaid workers in those sectors, or any establishment where the labour market's stability is at risk face an executive instrument for the wages (under 50 workers) or a collective labour dispute (50 or more), precautionary attachment and a travel ban on the person in charge; the Public Prosecution is notified where the establishment has more than 50 workers and the violation repeats within two consecutive months.

Q: Can an employee quit without notice if the salary is delayed? A: Article 45(1) of Federal Decree-Law No. 33 of 2021 lets a worker quit without notice, keeping their end-of-service rights, when the employer breaches its obligations under the contract or the law — provided the worker notifies MOHRE 14 working days before quitting and the employer does not put the breach right after MOHRE notifies it. Unpaid wages can also be reported to MOHRE as a labour complaint (600590000).

Q: Who is exempt from WPS? A: Article 4 of Resolution 340/2026 lists 11 cases, including workers with wage claims in court, absconding reports, detention or approved unpaid leave (with MOHRE notified where required), seafarers and foreign establishments' workers paid abroad (on request), mission permits of up to three months, citizen-owned fishing boats and public taxis, banks and financial institutions, and places of worship.

Q: Does a WPS violation affect work-permit fees? A: Yes. A repeat violation within six months reclassifies the establishment into MOHRE's third category, where a two-year work-permit renewal costs AED 3,450, against AED 250 in the first category (Cabinet Resolution No. 37 of 2022).

Q: Can a payroll company pay salaries for us? A: Yes. Article 5 allows delegation if MOHRE receives the delegate's details and a copy of the delegation or contract. The establishment stays responsible: if the delegate pays late, the measures apply to you.

Q: Does WPS apply to free-zone companies? A: Resolution 340/2026 applies to MOHRE-registered establishments. A company registered with a free-zone authority should check that authority's own wage-payment requirement.

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