UAE introduces stricter wage protection system enforcement framework

The UAE Ministry of Human Resources and Emiratisation (MOHRE) has issued Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System (WPS), replacing the previous WPS framework under Resolution 598 of 2022. The new Resolution comes into force on 1 June 2026.

The Resolution introduces a significantly stricter and more accelerated enforcement regime for delayed salary payments in the private sector.

Key changes include:

• a unified wage due date, with salaries for a given month now due on the first day of the following month;
• an increase in the WPS compliance threshold from 80% to 85% of total wages due;
• substantially shorter enforcement timelines; and
• expanded enforcement powers for MOHRE and other authorities.

Under the new framework:

• reminders and warnings may begin from Day 2 following the due date;
• suspension of new work permits may apply from Day 5;
• administrative fines and third category classification may apply from Day 11 for repeat breaches;
• labour disputes may be automatically registered from Day 16 in certain cases; and
• more serious measures, including referral to the Public Prosecution, precautionary attachment and travel bans, may arise from Day 21 for larger or repeat offenders.

By way of example, if salaries relating to the month of June are due, those salaries must now be paid by 1 July. Any payment made after 1 July would technically constitute delayed payment under the WPS regime, with enforcement measures potentially beginning from 2 July onwards. This differs from the previous position under Resolution 598 of 2022, where employers generally had a longer grace period before being treated as non-compliant.

Importantly, employers whose payroll cycles already operate on an arrears basis with a contractual payment date falling before the first day of the following month should not generally need to amend their payroll arrangements, provided salaries continue to be paid on or before the applicable due date.

The Resolution also expressly addresses situations where employers outsource payroll administration to third parties, confirming that employers remain ultimately responsible for timely salary payments.

From a practical perspective, employers should review payroll timing, WPS processes and any outsourced payroll arrangements to ensure compliance with the accelerated timelines and heightened enforcement environment under the new regime.

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