UAE has introduced a major Wage Protection System amendment by issuing Ministerial Resolution No. 340 of 2026. The resolution has been implemented from June 1, 2026. The amendment is introduced to tighten the rule around the timely wage payments, increase compliance obligations for private sector employees, and speed up action against enforcements.
It’s important for businesses, HR departments and payroll teams to understand these changes. Penalties for missed deadlines may result in instant regulatory action and hence staying compliant is more paramount than ever.
Salaries Must Be Paid by the 1st of Every Month
One of the most significant differences is the introduction of a cut-off date for salaries to be paid. Employers need to now submit wages on WPS for the previous month by the first day of the next Gregorian month.
In the past, a grace period and contractual payment dates could be depended upon to cushion companies against penalties. The new scheme gives 100 per cent of this money a delayed status.
Many companies have had to rethink payroll schedules, cash flow management and bank and exchange house coordination, due to this change.
Understanding the New 85% Compliance Rule
The MoHRE has also raised the compliance level from 80% to 85%.
The company in question must provide at least 85 percent of its registered workers with their wages in a timely fashion in order to be compliant. If the limits are not kept above this, there may be regulatory measures.
This also means that at employee level, 85% of the employees must be paid their entitled salary for it to be deemed compliant by the WPS system.
Employers must exercise discretion in conducting letters and making recoveries of loans/recovery of internal penalties and ensure that no repayment is less than the minimum required.
New Hires Are Included from Day One
Employers had an extra window before new employees were added to the WPS monitoring cycle before the old spread. This exemption is no longer applicable.
On June 1, 2026, any worker will be covered by the WPS from the first day of work. If an employee is added late in the month then if necessary, the employer is still processing the applicable pro-rated salary as stipulated by the WPS requirements.
For companies that have regular hiring needs, there is a need to immediately implement best practices in the recruitment and payment process so as not to have any compliance issues.
New Automated Penalty Timeline
MoHRE has put in place a technology-based monitoring system, which automatically logs salary payments and takes action on enforcement.
Day 1: The system automatically identifies employers who have not paid employees their salaries and flags those that paid later.
Day 2: Company gets official electronic notifications/warnings.
Day 16: Applications for new work permits can be halted, and the process for labour disputes can start on day 16.
Day 21: More serious penalties and sanctions instituted, such as travel restrictions and further action taken by officials against the owners of companies.
The quicker the time line, the less time a company has to catch up on payroll errors once a deadline has passed.
WPS 2026 Compliance Checklist
To stay compliant under the new regulations, employers should:
- Calculate payroll in advance of the 1st of each month.
- Provide 85% workforce payment compliance.
- Ensure that each employee is getting paid at least 85% of what he is owed.
- Respond quickly to MoHRE notifications.
- Verify the accuracy of the payroll checks monthly.
FAQs
What is the new date for salary payment in the WPS 2026?
Payroll salary to an employee should be done on the WPS platform within the first day of each Gregorian month for the wages of the previous month.
What’s the new WPS compliance value of?
At least 90% of the registered workforce should be paid on time and in full; 85% of the entitled payroll for those in the workforce should be paid to those individuals on the same time and date.
Do new employees start their civilian careers with WPS in place?
Yes. No longer exempt, and all new hiring parties need to comply with the WPS on the first day of employment.
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