The UAE Ministry of Human Resources and Emiratisation (MOHRE) has introduced major updates to the Wage Protection System (WPS) through Ministerial Resolution No. 340 of 2026, effective 1 June 2026. The new resolution focuses on strengthening salary protection, improving payroll transparency, and enforcing stricter compliance requirements for private sector employers.
Key Changes Under the New WPS Resolution
1) Mandatory Salary Payment Deadline
- Salaries must be paid on or before the 1st day of each month for the previous month’s salary.
- Delayed payments may trigger immediate monitoring and enforcement actions.
2) Stricter Enforcement Timeline
Day 1: Due Date for employee wages for the previous month
Day 2: Employer warning notifications with a 10-day grace period before administrative measures are applied
Day 5: Suspension of new work permits
Day 11: Administrative measures are applied to companies
Day 16: Possible labour dispute
Day 21: Potential legal action and travel bans for responsible parties
3) 85% Wage Compliance Requirement
- Companies are expected to process at least 85% of total wages on time.
- Employees must still receive their full salary entitlement as per UAE Labour Law.
The latest WPS updates highlight the UAE government’s commitment to employee salary protection, digital transformation, and stronger payroll compliance. Companies are encouraged to review their payroll processes and strengthen compliance measures to avoid penalties and operational disruptions under the new resolution.
How BAM Advisors Can Help
Payroll service providers can support companies in adapting to the new WPS requirements by:
- Ensuring timely and accurate salary processing
- Preparing compliant Salary Information Files (SIF)
- Monitoring payroll deadlines and WPS submissions
- Managing payroll calculations, overtime, and deductions
- Avoid payroll errors, salary delays and compliance risks
- Keeping businesses updated on MOHRE regulations and WPS changes
- Supporting payroll documentation and audit requirements
