Since 1 June 2026, private-sector salaries in the UAE must be paid by the 1st of every Gregorian month for the previous month’s work. The old 15-day grace period is gone. Miss the WPS salary deadline and enforcement starts automatically the next day, your new work permits are frozen by day 5.
Key takeaways
- Ministerial Resolution No. 340 of 2026 (issued 12 May 2026, effective 1 June 2026) replaced Resolution No. 598 of 2022.
- Wages for the preceding month are due on the 1st of each Gregorian month. No grace period, no weekend or holiday extension.
- An establishment counts as compliant if at least 85% of total wages cleared on time, raised from 80%.
- Enforcement is automated. No inspector visits first.
- Day 5 is the one that hurts most SMEs: new work permits suspended, so hiring and renewals stop.
- Outsourcing payroll does not transfer the liability. It stays with you.
What changed on 1 June 2026?
The Ministry of Human Resources and Emiratisation (MOHRE) issued Ministerial Resolution No. 340 of 2026, which repealed Resolution No. 598 of 2022 and reset how wage payments are monitored across the private sector.
| Before (Res. 598 of 2022) | Now (Res. 340 of 2026) | |
|---|---|---|
| Payment due date | Flexible, tied to the pay cycle | 1st of each Gregorian month, unified |
| Grace period | 15 days | None |
| Compliance threshold | 80% of wages | 85% of wages |
| Monitoring | Monthly batch reports | Real-time, automated |
| Work permit suspension | Around day 17 | Day 5 |
| New employees | Exempt for first 30 days | In scope from the first pay cycle |
The single biggest shift is not the date, it is the disappearance of the buffer. Payroll processes built around a 15-day window no longer have anywhere to absorb a delay.
Who does the WPS salary deadline apply to?
It applies to all private-sector establishments licensed with MOHRE, on the mainland.
- DIFC and ADGM run their own employment frameworks and sit outside MOHRE’s WPS in the normal course.
- Other free zones that already use WPS, such as DMCC and JAFZA, are widely expected to align. If your staff hold MOHRE-registered contracts, assume you are in scope.
- Resolution 340 lists categories of workers and establishments that remain outside WPS scope, and that list was widened compared with the old resolution. Whether a specific exemption covers your business is a legal question, not an assumption to make on your own.
If you are not certain which framework governs your company, that is the first thing to confirm, not the payroll calendar.
What happens if you miss the deadline?
Enforcement runs on a fixed, automated schedule set out in the Resolution’s annex. It begins the day after the deadline.
| Day | What MOHRE does |
|---|---|
| Day 1 | Electronic monitoring registers the non-payment |
| Day 2 | Automated notifications and warnings; logged on your compliance record |
| Day 5 | New work permits suspended + written warning to the owner |
| Day 11 | Administrative fine (under Cabinet Resolution No. 21 of 2020) + reclassification to Third Category, for a repeat violation within six months |
| Day 16 | Automatic labour dispute registration on employees’ behalf; extended permit suspension (establishments with 25+ workers) |
| Day 21 | Precautionary asset attachment, travel ban on the person in charge, referral to Public Prosecution (establishments with 50+ workers, serious or repeat cases) |
Two consequences are worth reading twice.
Day 5 freezes your growth. One late payroll run stops new permits, renewals and transfers until wages are settled. If you are mid-hire, the hire stops.
Day 16 can cost you your team. Once a labour dispute is registered, affected employees may move to another employer without your consent. For a business built on a handful of specialised or long-tenured people, that is a serious exposure.
Construction, transport and storage, security, cleaning, and recruitment agencies are named as priority sectors for accelerated enforcement.
Does the 85% threshold give you room to be late?
Not in the way most people assume. Your establishment is treated as compliant if at least 85% of total wages due cleared through WPS on time. The remaining 15% must still be paid, it just does not, by itself, trigger the escalation.
The trap is on the deduction side. UAE Labour Law permits deductions above 15% in defined circumstances, but for WPS compliance purposes the 85% threshold effectively caps them at 15% of a worker’s monthly wage. Any deduction that pushes take-home pay below 85% needs to be lawful and documented before the file is submitted — not explained afterwards. Undocumented arrangements that worked quietly under the old regime now generate automatic flags.
Does outsourcing payroll protect you?
No. The Resolution expressly allows you to delegate payroll processing to a third party, provided MOHRE has the delegate’s details and the scope of the delegation. But legal responsibility for paying wages on time stays with the establishment. If your provider files late, it is still your violation, your permit freeze, and your record.
How Legal Cover helps
Missing the WPS salary deadline is not a payroll problem that stays in payroll, it becomes frozen permits, contract disputes, and in the worst cases a file with the Public Prosecution. We help UAE businesses confirm which framework applies to them, get employment contracts and deduction practices documented properly, and handle disputes when they land all at a fixed monthly fee, handled by licensed UAE lawyers.
Unsure whether your contracts and deductions would survive an automated flag? Book a complimentary Legal Clarity Call and we’ll review where you stand.
When exactly are salaries due in the UAE now?
On the 1st day of each Gregorian month, for the preceding month’s wages. There is no grace period and no extension if the 1st falls on a weekend or public holiday. In practice, funds need to reach your WPS agent before the previous month closes.
Does the new WPS salary deadline apply to free zone companies?
If your employees hold MOHRE-registered contracts, assume yes. DIFC and ADGM operate separate frameworks. Free zones such as DMCC and JAFZA that already use WPS are expected to align with the new rules.
What is the first penalty for paying salaries late?
Automated notifications begin on day 2. The first materially painful consequence is on day 5, when MOHRE suspends the issuance of new work permits and issues a written warning to the owner.
Are new employees covered from their first month?
Yes. The old 30-day exemption for new hires has been removed, so new employees fall within WPS scope from their first pay cycle.
Can I be compliant if I only paid part of the payroll?
An establishment is treated as compliant if at least 85% of total wages due were transferred on time. The balance must still be paid, and any deduction taking a worker below 85% must be lawful and documented.