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New UAE WPS Law June 2026: All Salaries Must Be Paid by the 1st

UAE WPS new rules June 2026 salary payment by 1st enforcement timeline

16 min read

This law is now in effect. Ministerial Resolution No. 0340 of 2026, signed by H.E. Dr. Abdulrahman Abdulmannan Al Awar on May 12, 2026, came into force on June 1, 2026. The first enforcement cycle applies to May 2026 wages. This guide is based on the full official text of the resolution.

What Changed in the UAE Wage Protection System on June 1, 2026?

Quick Answer: Ministerial Resolution No. 0340 of 2026 replaces the old WPS framework (Resolution 598 of 2022) effective June 1, 2026. The new law sets the 1st of each Gregorian month as the unified wage due date, introduces an 85% compliance threshold, and imposes an escalating enforcement timeline that freezes work permits by day 5, imposes administrative fines by day 11, and triggers travel bans plus prosecution referrals by day 21.

As of June 1, 2026, every private sector employer in the UAE operates under a fundamentally different wage payment regime. The Ministry of Human Resources and Emiratisation (MOHRE) issued Ministerial Resolution No. 0340 of 2026 on May 12, 2026, completely repealing the previous WPS framework under Resolution 598 of 2022. In this guide, Qaspro Global breaks down every article of the new resolution so employers can adjust payroll operations to stay compliant.

The changes are not minor adjustments. The new resolution introduces a fixed due date, tighter monitoring, and a 21-day escalation ladder that can end with travel bans on company owners and criminal prosecution referrals. Every UAE employer with workers registered on MOHRE must understand these rules immediately.

What Is the New Unified Wage Due Date Under Resolution 0340?

Article 1 of Ministerial Resolution No. 0340 of 2026 designates the 1st day of each Gregorian month as the unified due date for paying workers’ wages for the preceding month. Any payment made after the 1st is officially classified as a delay in wage payment by MOHRE.

This is a significant change. Under the previous system, employers had more flexibility on payment timing. Now, the law is explicit: wages for June must reach workers by July 1, wages for July must reach workers by August 1, and so on.

All payments must be made through the Wage Protection System approved by MOHRE, or any other systems the Ministry adopts for this purpose. Under Article 1(3), employers must also submit documents and data to prove payment in accordance with the rules and mechanisms set by the Ministry.

What Is the 85% Compliance Threshold?

Article 2 introduces a new compliance calculation that did not exist in the old resolution. Under the new rules, an establishment is deemed compliant with wage payment obligations if it transfers no less than 85% of the total wages due to its workers by the due date.

Similarly, a worker is not considered unpaid if they receive at least 85% of their entitled wage value, provided the shortfall results from lawful deductions or withholdings under Article 25 of Federal Decree-Law No. 33 of 2021. These lawful deductions include court-ordered amounts, loan repayments agreed between employer and worker, social insurance contributions, and penalties for damages caused by the worker (capped at 5 days’ wages per month).

Critically, the 85% threshold does not reduce the worker’s right to their full wage. The resolution states this explicitly: “without prejudice to the worker’s right to claim any amounts due thereto.” The threshold only determines whether MOHRE classifies the employer as “compliant” or “non-compliant” for enforcement purposes.

What Is the New Enforcement Timeline for Late Wage Payments?

Annex No. 1 of Resolution 0340 sets out a strict, escalating enforcement timeline. This is the most important part of the new law for employers. Qaspro Global advises every HR and finance team to print this timeline and keep it visible in the payroll department.

Day 1 (Due Date, 1st of Month): MOHRE begins electronic monitoring of all establishments to check compliance. This applies to every registered establishment, compliant or not.

Day 2: Non-compliant establishments receive notifications and alerts from MOHRE to pay wages. These continue until payment is proven or the next procedure is triggered.

Day 5: MOHRE suspends the issuance of new work permits for the establishment. The owner is notified of the reason for suspension and warned to pay immediately.

Day 11: Two actions happen simultaneously: (1) The administrative fine prescribed under Cabinet Resolution No. 21 of 2020 is applied, and (2) the establishment is reclassified into the Third Category under Ministerial Resolution No. 209 of 2022 if this is a repeated violation within six months.

Day 16: MOHRE automatically registers an individual or collective labour dispute for affected workers. Work permit issuance is suspended for non-compliant establishments employing 25 or more workers in all sectors, as per the Ministry’s applicable regulations. The same threshold applies to establishments owned by the same employer(s) in construction, transport and storage, security services, cleaning services, recruitment agencies, or domestic worker recruitment offices where the combined total of unpaid workers reaches 25 or more.

Day 21: The most severe actions trigger: (1) Executive instrument issued for establishments with fewer than 50 workers, or collective labour dispute registration for 50+ workers, (2) precautionary attachment procedures against the establishment’s assets, (3) travel ban imposed on the person in charge, and (4) notification to the Public Prosecution if the establishment has 50+ workers and this is a repeated violation within two consecutive months. These measures also apply where there exists a risk relating to the stability and regularity of the labour market, regardless of the size of the establishment.

Full Enforcement Timeline Table

Day After Due Date	Action Taken by MOHRE	Who It Targets
Day 1 (1st of month)	Electronic monitoring begins	All establishments
Day 2	Notifications and payment alerts sent	Non-compliant establishments
Day 5	New work permits suspended + owner warning	Non-compliant establishments
Day 11	Administrative fine applied + Third Category reclassification (if repeat within 6 months)	Non-compliant establishments
Day 16	Labour dispute auto-registered + work permits suspended	Establishments with 25+ workers (all sectors) or same-owner groups of 25+ unpaid workers in construction, transport, security, cleaning, recruitment
Day 21	Executive instrument or collective dispute + asset attachment + travel ban on person in charge + Public Prosecution referral (50+ workers, repeat violation in 2 consecutive months)	Large non-compliant establishments, repeat offenders, same-owner groups of 50+ unpaid workers in high-risk sectors, or any establishment posing labour market stability risk

How Does the New WPS Compare to the Old Resolution 598 of 2022?

The differences between the repealed Resolution 598 of 2022 and the new Resolution 0340 of 2026 are substantial. Here is a side-by-side comparison of the key changes.

Feature	Old Rules (Resolution 598/2022)	New Rules (Resolution 0340/2026)
Wage due date	No single unified due date specified at ministry level	1st of each Gregorian month (unified for all)
Compliance threshold	Not explicitly defined in the resolution	85% of total wages = compliant
Work permit freeze	Timeline varied	Day 5 after due date (fixed)
Administrative fine	Applied at various stages	Day 11 after due date (fixed)
Third Category reclassification	Separate process	Automatic on Day 11 for repeat violations within 6 months
Auto labour dispute registration	Not automatic	Automatic on Day 16 for 25+ unpaid workers
Travel ban on owner	Not specified in the resolution	Day 21 after due date
Public Prosecution referral	Not specified in the resolution	Day 21 for 50+ worker establishments with repeat violations in 2 consecutive months
Effective date	2022	June 1, 2026

Which Workers Are Excluded from the WPS?

Article 4 of Resolution 0340 lists eleven categories of workers excluded from WPS coverage. Employers should review this list carefully to ensure they are not over-reporting or under-reporting their workforce in the system.

Workers with active court wage claims referred to the competent court, or where an executive instrument has been issued, within the limits of the wage or the period subject of the claim
Workers with an active absconding report filed against them, throughout the validity period of such report
Workers whose liberty is restricted by a competent authority order or judgment, during the restriction period when work cannot be performed (MOHRE must be notified with supporting documents)
Workers on approved unpaid leave during the leave period (MOHRE must be notified with required documents)
Seafarers working on ships, based on a request submitted by the establishment and in accordance with the Ministry’s decision
Foreign workers of foreign establishments or their branches in the UAE who receive wages outside the UAE, based on establishment request and after the approval of the workers
Workers on mission work permits for a duration not exceeding three months
Fishing boats owned by individual citizens
Public taxis owned by individual citizens
Banks and financial institutions
Places of worship

Can an Employer Delegate Wage Payment to a Third Party?

Yes. Article 5 of Resolution 0340 allows employers to delegate wage payment to another party. However, the employer must provide MOHRE with the delegate’s data and a copy of the delegation agreement or contract, including the scope of delegation and the limits of the resulting obligations and responsibilities.

The critical point: even when payment is delegated, the employer remains fully responsible for paying wages on time. If the delegate fails to pay on the due date, all enforcement procedures under the resolution apply against the employer. The employer can pursue the delegate separately under the terms of their agreement, but MOHRE will hold the establishment accountable regardless.

Will MOHRE Issue a Procedural Guide?

Yes. Article 6 of Resolution 0340 states that the Undersecretary of Labour Market and Emiratization Operations shall issue a guide setting out the procedures necessary for implementing the provisions of this resolution. This procedural guide will provide detailed operational instructions for how MOHRE monitors compliance, how establishments submit proof of payment, and how the enforcement timeline is administered in practice. Employers should watch for this guide on the MOHRE portal in the coming weeks.

What Happens to Employers in Construction, Transport, Security, and Cleaning Sectors?

Resolution 0340 treats certain labour-intensive sectors with heightened scrutiny. Starting from Day 16, MOHRE looks beyond individual establishments and considers unity of ownership across multiple companies. If the same employer owns several establishments in construction, transport and storage, security services, cleaning services, recruitment agencies, or domestic worker recruitment offices, and the combined total of unpaid workers across all those entities reaches 25 or more, the enforcement actions at Day 16 apply to all of them.

At Day 21, the threshold increases to 50 workers across same-owner establishments in these sectors. When reached, this triggers asset attachment, travel bans, and potential criminal prosecution referrals.

This “unity of ownership” concept prevents employers from spreading workers across shell companies to stay below enforcement thresholds. MOHRE will aggregate worker counts across all establishments owned by the same person or persons in these high-risk sectors.

What Should UAE Employers Do Now That Resolution 0340 Is in Effect?

Resolution 0340 took effect on June 1, 2026. The first enforcement cycle applies to May 2026 wages. Employers who have not already adjusted their payroll operations must act immediately. Qaspro Global recommends the following steps:

Restructure your payroll calendar: Ensure all wage payments are scheduled to clear by the 1st of each month. If your current payroll cycle runs on the 5th, 10th, or 15th, you must move it forward immediately. Factor in weekends and public holidays that may affect bank processing times.
Verify your WPS agent registration: Confirm that your WPS agent (bank or exchange house) can process bulk salary transfers before the 1st of each month.
Audit your worker headcount: Know exactly how many workers you have registered on MOHRE. The 25-worker and 50-worker thresholds determine the severity of enforcement actions.
Document all lawful deductions: Since the 85% threshold depends on lawful deductions, ensure every deduction from worker wages has a legal basis and proper documentation under Article 25 of Federal Decree-Law No. 33 of 2021.
Review excluded workers: If you have workers who fall under the exclusion categories in Article 4 (seafarers, mission permits, unpaid leave, court claims), ensure MOHRE has been notified with proper documentation.
Update internal policies: Brief HR and finance teams on the new 21-day enforcement timeline. Assign a responsible person to monitor WPS compliance status on the MOHRE portal after each pay cycle.
Check delegation agreements: If you use a third-party payroll provider, ensure the delegation is registered with MOHRE as required by Article 5. Remember that the employer remains responsible even if the delegate fails.
Watch for the procedural guide: Article 6 requires the Undersecretary to issue a procedural guide for implementation. Monitor the MOHRE website and official channels for this guide, which will provide detailed operational instructions.

What Are the Administrative Fines for WPS Non-Compliance?

Resolution 0340 references the fines prescribed under Cabinet Resolution No. 21 of 2020 Concerning Service Fees and Administrative Fines at the Ministry of Human Resources and Emiratisation. These fines are applied from Day 11 after the due date. The exact fine amount depends on the violation type, establishment size, and whether it is a first-time or repeat offence.

In addition to the monetary fine, repeat offenders face Third Category reclassification under Ministerial Resolution No. 209 of 2022 if the violation recurs within six months. Third Category establishments face restrictions on hiring new workers, higher guarantee requirements, and increased government scrutiny on all labour transactions.

When Did the First Enforcement Cycle Begin?

The resolution took effect on June 1, 2026. Since the unified due date is the 1st of each month for the preceding month’s wages, the first enforcement cycle applies to May 2026 wages, which were due by June 1, 2026.

This means employers must have had May 2026 salaries processed and reflected in the WPS by June 1. Any delay after that date triggers the Day 2 notifications (June 2), Day 5 work permit suspension (June 5), Day 11 fines (June 11), Day 16 labour disputes (June 16), and Day 21 travel bans and prosecution referrals (June 21).

Frequently Asked Questions

What is Ministerial Resolution No. 0340 of 2026?

Ministerial Resolution No. 0340 of 2026 is the new UAE Wage Protection System law issued by H.E. Dr. Abdulrahman Abdulmannan Al Awar, Minister of Human Resources and Emiratisation, on May 12, 2026. It replaces the previous Resolution 598 of 2022 and took effect on June 1, 2026. It introduces a unified wage due date on the 1st of each month and a 21-day escalating enforcement timeline.

When must UAE employers pay salaries under the new WPS rules?

All private sector employers must pay workers’ wages for the preceding month by the 1st day of the following Gregorian month. For example, June wages must be paid by July 1. Any payment after the 1st is classified as delayed under Article 1 of Resolution 0340/2026.

What does the 85% compliance threshold mean for employers?

Under Article 2 of Resolution 0340/2026, an employer is deemed compliant if at least 85% of total wages due are transferred by the due date. The remaining shortfall must result from lawful deductions under Article 25 of Federal Decree-Law No. 33 of 2021. Workers retain the right to claim any unpaid balance regardless of this threshold.

How quickly can MOHRE freeze work permits for late salary payment?

MOHRE suspends the issuance of new work permits on the 5th day after the due date. This means if wages are not paid by the 1st, the employer cannot hire or transfer any new workers from the 6th of that month onwards until wages are paid.

Can a company owner face a travel ban for not paying salaries?

Yes. Under Annex 1 of Resolution 0340/2026, MOHRE imposes a travel ban on the person in charge of the establishment on the 21st day after the wage due date. This applies to non-compliant establishments with 50 or more workers, same-owner groups in high-risk sectors, or any establishment posing a risk to labour market stability.

Are banks and financial institutions exempt from WPS?

Yes. Article 4 of Resolution 0340/2026 explicitly excludes banks and financial institutions from the Wage Protection System. Other exclusions include places of worship, fishing boats and public taxis owned by individual citizens, and workers on mission permits not exceeding three months.

Does the new law affect free zone companies?

The resolution applies to all establishments registered with MOHRE, which typically covers mainland (private sector) companies. Free zone companies that process visas through their free zone authority rather than MOHRE may have separate wage protection requirements under their free zone regulations. Employers should confirm with their specific free zone authority.

What happens if a payroll provider fails to process salaries on time?

Under Article 5 of Resolution 0340/2026, the employer remains fully responsible for timely wage payment even if a third-party payroll provider or delegate fails to process the transfer. All enforcement procedures, including work permit suspension, fines, and travel bans, apply against the employer. The employer can pursue the delegate separately under their contractual arrangement.

Can MOHRE refer employers to the Public Prosecution for late wages?

Yes. On the 21st day after the due date, MOHRE notifies the Public Prosecution and competent authorities if the establishment has more than 50 workers and the violation is repeated within two consecutive months. This can result in criminal proceedings against the employer under UAE labour and criminal law.

Will MOHRE issue detailed implementation procedures?

Yes. Article 6 of Resolution 0340/2026 requires the Undersecretary of Labour Market and Emiratization Operations to issue a procedural guide setting out the detailed procedures for implementing the resolution. This guide has not yet been published at the time of writing and will provide operational specifics on monitoring, payment proof submission, and enforcement administration.

When did Resolution 0340 of 2026 take effect?

Resolution 0340 of 2026 took effect on June 1, 2026, as stated in Article 8. From that date, the previous WPS framework under Ministerial Resolution No. 598 of 2022 is fully repealed and all establishments must comply with the new rules.

Need Expert Help?

Qaspro Global’s payroll and compliance team helps UAE employers set up WPS-compliant payroll systems, audit existing processes, and avoid the penalties under Resolution 0340/2026. Whether you need to restructure your payroll calendar, verify your compliance threshold calculations, or ensure proper documentation for excluded workers, our team handles it. Contact us today for a free consultation, or message us on WhatsApp.