MAY 2026 – UNITED ARAB EMIRATES (UAE)
NEW WAGE PROTECTION SYSTEM RULES
It is important that employers note the following:
Wage protection system rules effective 1 June 2026
The UAE Ministry of Human Resources and Emiratisation (MOHRE) has issued Ministerial Resolution No. 340 of 2026, introducing a significantly stricter Wage Protection System (WPS) framework for all private sector employers. The Resolution takes effect on 1 June 2026 and fully repeals Ministerial Resolution No. 598 of 2022.
Key changes include:
- Unified wage payment date: All private sector employers must now pay employees’ wages no later than the first day of each Gregorian month for the preceding month. Any payment made after this date is regarded as a delayed wage payment. No grace period applies.
- Mandatory use of WPS: Salaries must be paid through the MOHRE‑approved Wage Protection System or another Ministry-approved payment mechanism. Employers must retain and, where required, submit records proving wage payment compliance.
- 85% compliance threshold: An establishment is considered compliant if it transfers at least 85% of the total wages due to employees by the due date. Similarly, an employee will not be regarded as unpaid if they receive at least 85% of their wage, provided any shortfall results from lawful deductions permitted under UAE labour legislation. This does not prejudice an employee’s right to claim outstanding amounts.
Escalating enforcement measures for late payment:
The Resolution introduces an accelerated enforcement regimen for late wage payments, including:
Employers operating in the UAE should urgently review payroll cycles, cash‑flow arrangements and WPS processes to ensure salaries are credited on or before the first day of each month. Failure to do so may result in immediate regulatory action.
As the official UAE Ministry publication platforms are temporarily inaccessible, a direct link to the Resolution cannot be provided. This news flash is nevertheless based on the formally issued text of Ministerial Resolution No. 340 of 2026.
