MINISTERIAL RESOLUTION 340 OF 2026 — IN FORCE 1 JUNE 2026

UAE WPS Compliance Checker

The 15-day grace period is gone. Salaries are now due by the 1st of each month, and enforcement starts the next day — see exactly where a late payment puts you.

The rule changed on 1 June 2026. Ministerial Resolution No. 340 of 2026 repealed Resolution 598 of 2022 and abolished the fifteen-day grace period. Salaries for the previous month are now due by the 1st day of the following Gregorian month, with no buffer. Guidance published before mid-2026 still quotes fifteen days and is out of date.
0 means paid on or before the deadline.
Decides which escalation stages apply.
The compliance threshold is 85%.

General guidance based on Ministerial Resolution No. 340 of 2026, Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 21 of 2020 — not legal advice. Published sources cite the resolution number as both 340 and 0304 of 2026; we follow the law-firm commentary in using 340. Escalation stages are discretionary powers available to MoHRE rather than automatic outcomes, and exact fine amounts depend on the violation schedule and your establishment history. Confirm your position with MoHRE or an employment lawyer.

What actually changed

Under Ministerial Resolution 598 of 2022, salary due dates followed individual employment contracts and employers had fifteen days before a payment was formally treated as delayed. Resolution 340 of 2026 repealed that framework entirely on 1 June 2026.

Before 1 June 2026Now
DeadlineSet by each employment contract1st of the following Gregorian month, for everyone
Grace period15 daysNone — monitoring begins on the due date
Small employersSome exemptionsNo headcount exemption
MeasurementPass or fail85% threshold, at company and individual level

The 85% threshold cuts both ways

Compliance is now measured proportionally: an establishment is treated as compliant where at least eighty-five per cent of total wages due have been paid. That gives some tolerance for a genuine banking failure affecting a handful of transfers. But the test also runs at individual employee level, so consistently paying the same few people late is caught even when the company-wide percentage looks healthy.

The permit freeze matters more than the fine

For most businesses the money is not the problem. A work permit suspension from day five blocks renewals across the entire establishment file rather than only for affected employees, so hiring stops completely. Third Category reclassification raises ministry service fees and constrains visa quotas. And an establishment sitting in the non-compliance register is visible to banks, partners and prospective hires, which tends to outlast the underlying issue.

It feeds into your Emiratisation position too

An Emirati employee only counts toward your Emiratisation quota if they are registered with GPSSA and paid through WPS. A WPS failure can therefore knock Emirati staff out of your quota calculation and create a second liability at AED 9,000 per month per unfilled position, entirely separately from the WPS consequences themselves.

Frequently Asked Questions

When must salaries be paid under the new WPS rules?

Wages for the previous month must be credited by the first day of the following Gregorian month. Ministerial Resolution No. 340 of 2026 came into force on 1 June 2026 and abolished the fifteen day grace period that existed under the old framework, so a salary paid on the second of the month is already recorded as late. Due dates are also no longer set by individual employment contracts, which previously allowed some employers to pay mid-month legitimately.

Is the 15-day rule really gone?

Yes, and this is the most important thing to understand about the change. Under Ministerial Resolution 598 of 2022 employers had fifteen days before a payment was formally treated as delayed. That resolution was repealed. A great deal of guidance published before mid-2026 still repeats the fifteen day figure, so if you are working from anything written earlier, or from memory, you are working from a rule that no longer exists.

What is the 85% compliance threshold?

The new framework measures compliance proportionally rather than as a simple pass or fail. An establishment is treated as compliant where at least eighty-five per cent of total wages due have been paid, and the measurement operates at both company level and individual employee level. Paying most of your workforce on time does not cure a persistent failure to pay particular individuals, because the individual-level test catches that separately.

What happens if I pay late?

Enforcement escalates day by day. Electronic monitoring starts immediately on the due date, notifications and warnings follow from the second day, and new work permits are suspended from the fifth. From the eleventh day administrative fines and reclassification to Third Category can apply where there has been a repeat violation within six months. From the sixteenth day larger establishments face automatic labour dispute registration, and from the twenty-first day the most serious measures apply including asset attachment, travel bans and referral to the Public Prosecutor.

Which is worse, the fine or the work permit suspension?

For most businesses the operational consequences hurt far more than the money. A permit freeze stops all new hiring across the entire establishment file rather than just for affected employees, so a growing company simply cannot recruit. Third Category reclassification raises your ministry service fees and constrains visa quotas. And once an establishment appears in the non-compliance register, banks, partners and prospective hires can see it.

Does WPS apply to free zone companies?

The federal system applies to private-sector employers registered with MoHRE. DIFC and ADGM operate their own separate employment regimes and sit outside the federal WPS entirely. Other free zones vary, with many following broadly similar wage protection requirements through their own authorities, so you should confirm the position with your specific free zone rather than assuming either way.

Does my company qualify for a small business exemption?

No. There is no longer any exemption based on headcount. Every MoHRE-registered private-sector employer must transmit a Salary Information File through an approved bank or exchange house, whatever its size. Some of the harsher escalation stages are reserved for establishments above twenty-five or fifty employees, but the underlying obligation to pay on time through WPS applies to everyone.

How does WPS connect to Emiratisation?

An Emirati employee only counts toward your Emiratisation quota if they are registered with the General Pension and Social Security Authority and paid through WPS. A WPS failure can therefore create a second, separate problem by knocking Emirati staff out of your quota calculation, which carries its own monthly cost per unfilled position. The two systems are checked against each other.

Payroll and WPS filing handled properly

The new deadline leaves no room for a slow approval chain or a bank cut-off missed by a day. Browse UAE payroll providers and PRO services who transmit the Salary Information File on time every month.

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