Under Ministerial Resolution 340 of 2026, UAE employers must pay all private sector employees through the Wage Protection System (WPS) by the 1st of every month. To meet the July 1, 2026 deadline, submit your SIF file to your bank or WPS agent by June 29. Missing the deadline triggers MOHRE enforcement from Day 2 and work permit freezes by Day 5.
July 1, 2026 is the next UAE payroll due date. Under the updated Wage Protection System rules introduced by Ministerial Resolution 340 of 2026 (effective June 1), private sector employers across the UAE must complete salary payments through an approved WPS channel by the 1st of each Gregorian month for the previous month’s wages.
This is not a grace period. Banks and exchange houses that process WPS payments need 1 to 2 working days to validate and transmit your SIF file to MOHRE’s system. If you submit your Salary Information File today (June 29) or Monday (June 30), your payments will land before the July 1 deadline. Wait until Tuesday and you are already late.
Here are the 9 steps every UAE employer must complete to stay WPS-compliant and protect your work permits.
What Changed Under Ministerial Resolution 340 of 2026?
Ministerial Resolution 340 of 2026 replaced MR 598 of 2022 and introduced one critical change: a unified due date. Previously, different employer categories had different WPS deadlines. From June 1, 2026, every private sector employer regardless of size, sector, or payroll frequency must pay wages through WPS by the 1st of the Gregorian month following the wage period.
The 85% compliance threshold also remains in force: at least 85% of your workforce must be paid through WPS for your establishment to be considered compliant. For a full breakdown of what changed, see our guide on UAE WPS new rules June 2026.
Step 1: Confirm Which Employees Are Covered
WPS applies to all private sector employees working under a MOHRE-registered employment contract. This includes full-time, part-time, and contractual workers. Free zone employees covered by their respective free zone authority (e.g., JAFZA, DIFC) follow separate WPS protocols mandated by those authorities. Confirm with your free zone HR officer whether MOHRE WPS or the free zone’s own system applies to your establishment.
Domestic workers registered under MOHAP fall under a different regime and are not processed through the same WPS channel as mainland employees.
Step 2: Calculate Gross Salary Using the Legal Definition
Under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, “wage” means the basic salary plus any recurring allowances stipulated in the employment contract or established by practice. This typically includes:
- Basic salary
- Housing allowance (if contractual)
- Transportation allowance (if contractual)
- Other fixed monthly allowances
Variable commissions, one-off bonuses, and reimbursements are generally excluded from the WPS wage figure unless they form part of a guaranteed contractual amount. Confirm your payroll components against the original signed employment contract to avoid misclassification.
If you employ UAE nationals, the minimum basic salary for Emiratis is AED 6,000 per month (Cabinet Resolution No. 9 of 2024, deadline June 30, 2026). Ensure all Emirati employees meet this threshold before processing payroll.
Step 3: Apply Only Authorised Deductions
Article 25 of FDL 33/2021 limits what employers can deduct from wages. Permissible deductions include:
- Social insurance or pension contributions (for UAE and GCC nationals)
- Employee salary advance repayments (by written agreement)
- DEWS or approved end-of-service savings scheme contributions
- Court-ordered deductions
- Absence deductions proportional to unpaid days
Total deductions must not exceed 25% of the monthly wage (or 50% in exceptional circumstances approved by a labour court). Deducting beyond the legal cap is a violation of the Labour Law and can result in a labour complaint being filed against the company.
Step 4: Calculate Net Pay Per Employee
For each employee: Net Pay = Gross Salary – Total Authorised Deductions. This is the figure that appears in the SIF file as the net salary to be transferred. The SIF must match the actual bank transfer amount exactly. Discrepancies between the SIF and the bank transaction will cause your WPS submission to fail validation with MOHRE.
Step 5: Prepare the SIF File
The SIF (Salary Information File) is a structured data file submitted through your WPS agent, typically your bank or an approved exchange house. Each row represents one employee and must include:
- Employer Establishment ID – your MOHRE-registered establishment code
- Employee Labour Card Number – the MOHRE-issued ID for the employee
- Bank routing code (IBAN or agent code) – where the salary is deposited
- Salary period start and end dates (e.g., June 1-30, 2026)
- Gross salary amount in AED
- Total deductions in AED
- Net salary amount in AED
Most UAE payroll software (Bayzat, ZenHR, Zoho Payroll, Payboy) generates the SIF automatically. If you are using spreadsheets, download the official SIF format from your bank’s WPS portal and populate it manually. Do not alter the column structure as any deviation causes an automatic rejection.
Step 6: Submit the SIF File by the 29th or 30th
Banks and exchange houses do not process SIF files instantly. They validate the file structure, verify employee IBANs, and transmit the payment instruction to MOHRE’s central system. This takes 1 to 2 working days. For the July 1 deadline:
- June 29 (today) – ideal submission date
- June 30 (Monday) – absolute latest for most banks
- July 1 (Tuesday) – submitting on this date means MOHRE records you as late
Approved WPS agents include major UAE banks (Emirates NBD, FAB, ADCB, Mashreq, Dubai Islamic Bank) and exchange houses (Al Ansari Exchange, Al Fardan Exchange, UAE Exchange). Use whichever institution holds your company’s payroll account.
Step 7: Verify the 85% Compliance Threshold
MOHRE considers an establishment compliant when at least 85% of its registered workforce is paid through WPS. The remaining 15% can account for employees on unpaid leave, recently terminated staff whose final settlement is pending, or employees in the process of onboarding. Intentionally omitting employees from WPS to reduce the submission is a violation.
Check your MOHRE establishment dashboard after submission. The compliance percentage updates within 24 hours of the bank confirming the transfer. If it shows below 85%, submit a supplementary SIF for the missed employees before MOHRE begins enforcement action.
Step 8: Handle Joiners, Leavers, and Final Settlements
New joiners who started mid-month receive a prorated salary based on actual working days. Include them in the SIF if they have a live MOHRE work permit. Their Labour Card number must already be active in the system or the SIF line will be rejected.
For employees who resigned or were terminated during the month, their final settlement including unpaid leave balance, notice period pay, and end-of-service gratuity must be processed through WPS. Under FDL 33/2021, final settlement is due within 14 days of the termination date. Late payment triggers a labour complaint and potential financial penalties against the company.
For annual leave encashment, include the leave balance payout in the final payroll cycle and reflect it in the SIF gross salary figure for that employee.
Step 9: Maintain Payroll Records for 5 Years
Article 17 of FDL 33/2021 requires employers to retain payroll records for a minimum of 5 years. In the event of a labour dispute, MOHRE inspection, or FTA audit, you must produce payslips showing gross salary, deductions, and net pay for each employee during the relevant period. WPS submission confirmations from your bank serve as primary evidence that wages were paid on time.
Store records in a secure, accessible format using a cloud HR platform or structured archive. Paper-only records that cannot be produced quickly during an inspection are treated as missing records under UAE labour law. For broader record-keeping requirements, see our guide on UAE bookkeeping laws and federal regulations.
What Happens If You Miss the July 1 Deadline?
Missing the WPS deadline triggers an automatic enforcement sequence. There is no grace period under the new rules.
| Day After Deadline | MOHRE Action | Business Impact |
|---|---|---|
| Day 2 | Automated notifications and warnings issued | Official non-compliance record begins |
| Day 5 | Work permit issuance and renewal FROZEN | Cannot hire new staff or renew existing permits |
| Day 11 | Monetary fines + Third Category classification applied | Blacklisted from all MOHRE services; hiring blocked |
| Day 16 | Labour disputes auto-registered; work permits suspended | Existing permits suspended (25+ employee employers in covered sectors) |
| Day 21 | Precautionary attachment, travel bans, Public Prosecution referral | Personal liability risk for company partners and HR managers |
Third Category classification, triggered at Day 11, is particularly damaging. It blocks the company from applying for any new work permits, renewing existing ones, or making changes to the labour file. Clearing Third Category status requires paying all overdue wages, settling any fines, and applying for reclassification through MOHRE, a process that can take weeks and disrupts all ongoing hiring plans.
UAE Payroll Month-End Compliance Checklist
| Task | Deadline | Responsible |
|---|---|---|
| Finalise attendance and absence records | 27th of month | HR Manager |
| Calculate gross salary and deductions per employee | 27th-28th | HR / Accounts |
| Generate SIF file from payroll system | 28th-29th | Payroll Software / HR |
| Upload SIF to bank or WPS agent | 29th (latest 30th) | Finance Manager |
| Confirm MOHRE dashboard shows 85%+ compliance | 1st of month | HR Manager |
| Archive payslips and bank confirmation | 1st-2nd of month | Accounts |
| Process final settlements for employees who left | Within 14 days of exit | HR / Accounts |
How Payroll Connects to Monthly Bookkeeping
Payroll is one of the largest recurring expenses for most UAE businesses and directly affects your financial statements. Each month, the total payroll amount must be posted to your accounts as a salary expense with corresponding liability accounts for amounts due before the bank transfer. Your monthly bookkeeping checklist should include reconciling the WPS bank debit against the payroll ledger to ensure the figures match exactly.
If you use cloud accounting software, WPS transactions imported from your bank statement should be auto-matched to the payroll journal entry. Any unexplained variance between the payroll run total and the bank debit is a red flag that warrants investigation before the books are closed for the month.
For businesses with UAE national employees, the GPSSA or GCPF pension contributions must also be recorded correctly as employer costs in your corporate tax accounting. These are tax-deductible expenses under FDL 47/2022 and should appear on both the management accounts and the tax computation worksheet.
Gratuity Accrual: The Hidden Payroll Liability
Every payroll cycle should account for the accrual of end-of-service gratuity. Under FDL 33/2021, employees are entitled to 21 days of basic salary per year of service for the first 5 years, and 30 days per year thereafter. This liability accrues monthly, not just when an employee leaves.
Employers who enrol employees in DEWS (Daman End of Service Scheme for Dubai) or another approved workplace savings plan discharge this liability through monthly contributions, simplifying the final settlement process. For other employers, gratuity should appear on the balance sheet as a growing provision that is updated with each payroll run. Failing to accrue gratuity correctly distorts your profit and loss and understates liabilities on the balance sheet.
For leave entitlements, employees under FDL 33/2021 accrue 30 calendar days of annual leave per year after completing one year of service. The leave liability also accrues monthly and must appear in your accounts. When an employee takes leave or exits, the accrued balance is settled at the basic daily salary rate.
Payroll Software vs. Manual Processing: Which Is Right for UAE Businesses?
For businesses with more than 10 employees, manual spreadsheet-based payroll processing carries significant risk: SIF file errors, incorrect deduction calculations, missed new joiners, and wrong gratuity accruals. UAE payroll software platforms typically include:
- Automatic SIF file generation in the correct MOHRE format
- MOHRE WPS portal integration for direct submission
- Gratuity and leave balance tracking
- Payslip generation for each employee
- Integration with cloud accounting (QuickBooks, Xero, Zoho Books)
If you are using accounting software for your UAE business, check whether your provider includes a WPS-compatible payroll module before subscribing to a separate payroll tool. Integrated platforms reduce manual data entry and the risk of SIF-to-ledger mismatches.
For businesses that prefer to outsource, Qaspro Global provides full monthly bookkeeping and payroll services including SIF preparation, WPS submission, and MOHRE compliance monitoring.
Frequently Asked Questions
June 2026 salaries must be paid through WPS by July 1, 2026. Submit your SIF file to your bank or WPS agent by June 29 to 30 to allow 1 to 2 working days for bank processing and MOHRE confirmation.
MOHRE requires at least 85% of an establishment’s registered workforce to be paid through WPS in each monthly cycle. If fewer than 85% are paid on time, the establishment is flagged as non-compliant even if the remaining employees received their salaries through other channels.
A SIF (Salary Information File) is a structured data file containing payroll details for each employee. Most UAE payroll software generates it automatically. If using spreadsheets, download the SIF template from your bank’s WPS portal and populate each field: Establishment ID, Labour Card number, bank routing code, gross salary, deductions, and net salary.
WPS processes amounts in AED. If your employment contract specifies a foreign currency salary, convert the amount to AED at an agreed exchange rate and process the AED equivalent through WPS. The payslip should reflect both the contract currency and the AED equivalent paid.
Employees without a personal bank account can receive wages through an approved exchange house such as Al Ansari Exchange, Al Fardan Exchange, or UAE Exchange. The employer submits the SIF using the exchange house’s routing code and the employee collects cash at a branch. This still counts as WPS-compliant payment.
It depends on the free zone. Some free zones (JAFZA, KIZAD) have their own WPS portal connected to MOHRE. Others (DIFC, ADGM) operate under separate employment regulations entirely. Confirm with your free zone authority which WPS channel applies to your establishment before submitting.
Third Category is a MOHRE status applied from Day 11 after a missed WPS deadline. It blocks all work permit applications, renewals, and labour file changes. Reversal requires clearing all unpaid wages, paying accumulated fines, and formally applying to MOHRE for reclassification. The process typically takes several weeks and disrupts any active recruitment.
Yes. Part-time and flexible work arrangement employees registered with MOHRE under FDL 33/2021 are covered by WPS. Their prorated wages for hours or days worked must be processed through WPS in the same monthly cycle as full-time employees.
The key change under Ministerial Resolution 340 of 2026, which replaced MR 598 of 2022, is the unified due date. All employers now use the 1st of the Gregorian month as the single deadline regardless of company size or sector. The previous system had different deadlines for different employer categories. The 85% compliance threshold and the enforcement timeline remain broadly consistent with the prior rules.
Sole proprietors and working partners who are on the payroll as employees can be included in WPS if they have a valid MOHRE employment contract and Labour Card. Owners drawing profit distributions rather than a contracted salary are generally not processed through WPS. Consult your accountant to structure this correctly for both WPS compliance and corporate tax purposes.
Need Help With UAE Payroll and WPS Compliance?
Qaspro Global manages payroll processing, SIF file preparation, WPS submissions, and MOHRE compliance for businesses across the UAE. We ensure your salary runs are on time, every single month.
Founder & CEO, Qaspro Global — UAE tax expert with 16+ years of experience in VAT, corporate tax and FTA audit support.