UAE WPS Rules 2026: Salary Deadlines and Penalties for Employers
UAE employer guide · Updated November 2026
The Wage Protection System controls how private-sector salaries are paid in the UAE. New rules took effect on 1 June 2026. This guide explains the salary due date, the 85% threshold and what happens when pay is late, with a checklist for employers.
Short answer: from 1 June 2026, salary for each month is due by the first day of the next month. Employers must pay at least 85% of total wages on time, or face escalating measures from day 5.
What Is the Wage Protection System?
The Wage Protection System (WPS) is how the Ministry of Human Resources and Emiratisation (MOHRE) monitors private-sector pay. Employers send salaries through banks, exchange houses or other approved agents.
Each transfer is matched against the employee’s work permit and contract. MOHRE can see who was paid, how much and when.
What Changed on 1 June 2026
MOHRE issued Ministerial Resolution No. 340 of 2026, replacing Resolution No. 598 of 2022. It took effect on 1 June 2026.
| Rule | From 1 June 2026 |
|---|---|
| Salary due date | By the first day of the following month |
| Compliance threshold | At least 85% of total wages paid by the due date, up from 80% |
| Covered employers | Private-sector companies registered with MOHRE |
| Payroll outsourcing | The employer remains responsible for paying on time |
Escalation Timeline for Late Salaries
Measures are counted from the due date. Each step may apply; it is not automatic in every case.
| From | Possible measures |
|---|---|
| Day 2 | Reminders and warnings |
| Day 5 | Suspension of new work permits |
| Day 11 | Administrative fines and a lower company classification for repeat breaches |
| Day 16 | Labour disputes registered in certain cases |
| Day 21 | Referral to the Public Prosecution, asset attachment or travel bans for serious or repeat cases |
WPS Compliance Checklist for Employers
- Register every employee on WPS through an approved bank or exchange house.
- Match each salary to the amount in the MOHRE contract.
- Send the salary file early enough for pay to arrive by the first day of the following month.
- Include overtime and allowances owed for the month.
- Tell MOHRE about unpaid leave, absences and disputes, so those employees are recorded correctly.
- Keep payslips and transfer records for every employee.
Unpaid overtime counts as unpaid wages. Check amounts with our UAE overtime calculator.
Hiring Without Running WPS Yourself
If you have no UAE entity, you cannot run WPS for staff in the UAE. An Employer of Record can employ them and pay salaries through WPS for you.
Staffenza’s EOR service in the UAE costs AED 899 per employee per month, plus government costs at actual cost. For roles that can be remote, staff augmentation costs USD 225 a month on top of salary.
Related Guides and Tools
UAE WPS FAQs
What is WPS in the UAE?
The Wage Protection System (WPS) is the electronic system MOHRE uses to track salary payments. Private-sector employers pay salaries through approved banks or exchange houses, and MOHRE checks the transfers.
When must salaries be paid in the UAE from June 2026?
Under Ministerial Resolution No. 340 of 2026, salary for a month is due by the first day of the following month.
What happens if an employer pays salaries late?
Measures escalate from the due date. New work permits may be suspended from day 5, and fines may apply for repeat breaches from day 11. Serious cases may face further action from day 21.
What percentage of salaries must be paid to comply?
An employer is treated as compliant when at least 85% of total wages are paid by the due date.
Does outsourcing payroll remove the employer’s responsibility?
No. The employer stays responsible for paying on time, even if a provider runs payroll.
Does an EOR pay salaries through WPS?
Yes. When Staffenza employs staff through EOR in the UAE, it pays their salaries through WPS as the legal employer.