UAE Salary Payment Rules 2026: New WPS Deadline for Mainland Companies
From 1 June 2026, the salary payment timetable for companies registered with the UAE Ministry of Human Resources and Emiratisation changed significantly.
Under Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System, wages for the previous month are now due on the first day of the following Gregorian month. A payment made after that date is considered delayed for WPS purposes.
For mainland companies, this is more than an administrative change.
Businesses that previously processed salaries during the first few days of the following month, or relied on the previous WPS enforcement window, need to reconsider their payroll timetable. Payroll preparation, approvals, bank processing and WPS submission now need to be organised so that salaries are transferred by the regulatory due date.
The updated framework also introduces stricter monitoring and a higher WPS compliance threshold. An establishment is considered compliant where at least 85% of total wages are transferred within the specified timeframe, while an individual employee is treated as paid for WPS compliance purposes where at least 85% of the salary entitlement has been received, subject to lawful deductions. This threshold does not reduce an employee's contractual entitlement to their full salary.
This guide explains what changed, which companies are affected, what the first-of-the-month deadline means in practice, how WPS compliance is assessed and what mainland employers should do to reduce the risk of delayed salary payments.
What Changed Under the UAE Salary Payment Rules 2026?
The UAE Salary Payment Rules 2026 introduce a unified salary due date for establishments registered with MoHRE.
Under the new WPS framework:
Wages relating to the previous Gregorian month are due on the first day of the following Gregorian month
A salary paid after the first day is classified as delayed for WPS purposes
Salary payments must be processed through the Wage Protection System or another payment system approved by MoHRE
The establishment-level WPS compliance threshold has increased to 85% of total wages
An employee is considered paid for WPS monitoring purposes where at least 85% of the employee's entitled wage has been transferred, provided any difference is supported by lawful deductions
Delayed payments are subject to an accelerated monitoring and enforcement process
For example, wages relating to August 2026 are due on 1 September 2026 under the new framework.
This does not necessarily mean that every employee must have a contractual salary date stated as the first of the month. The practical regulatory issue is that, for WPS purposes, wages for the preceding month become due on the first day of the following Gregorian month and payments after that date are regarded as delayed.
The change is particularly important for employers whose previous payroll procedures involved processing salaries several days into the following month. Those businesses now need to bring payroll preparation, internal approvals and WPS processing forward.
MoHRE has clarified that the updated system is intended to standardise monitoring and enable earlier intervention when wages are delayed, rather than permitting employers to treat the 85% compliance threshold as a right to withhold part of an employee's salary.
Which Companies Are Affected by the New UAE WPS Salary Deadline?
Ministerial Resolution No. 340 of 2026 applies to private-sector establishments registered with the Ministry of Human Resources and Emiratisation (MoHRE).
For practical purposes, UAE mainland private-sector companies employing workers under MoHRE are therefore within the scope of the new rules.
Employers covered by the Resolution must pay wages through the Wage Protection System or another salary payment system approved by MoHRE and must comply with the new unified payment timetable.
The rules should not, however, be described as automatically applying to every company incorporated in a UAE free zone.
Free zone employment and payroll arrangements can differ depending on the jurisdiction and the authority regulating the employees. Financial free zones such as the DIFC and ADGM operate separate employment frameworks, while other free zones may have their own payroll procedures or arrangements.
Businesses should therefore determine which employment authority regulates their workforce before applying the MoHRE WPS rules to a free zone company.
For mainland companies registered with MoHRE, there is no such ambiguity: the new WPS framework applies. The UAE Government's current guidance expressly states that all establishments registered with MoHRE must pay wages under the new system.
Is There Still a 15-Day Grace Period for Salary Payments in the UAE?
No. Under the new WPS framework, employers should no longer rely on the previous 15-day window when planning payroll.
Under Ministerial Resolution No. 598 of 2022, an employer was generally considered late for WPS purposes if wages had not been paid within 15 days of the applicable due date, unless the employment contract provided otherwise.
Ministerial Resolution No. 340 of 2026 replaced that framework from 1 June 2026.
The new system establishes the first day of each Gregorian month as the unified due date for wages relating to the preceding month. Any payment made after that date is considered delayed.
This is an important distinction for employers. The first of the month is not the beginning of another 15-day payment period. It is now the regulatory WPS due date itself.
The enforcement timetable also begins much sooner. Under the current framework:
From the second day after the due date, MoHRE can issue electronic notifications and warnings
On the fifth day, issuance of new work permits can be suspended for a non-compliant establishment
Further enforcement measures can follow on the 11th, 16th and 21st days depending on the circumstances, establishment size and whether violations are repeated
Mainland employers should therefore build sufficient time into their internal payroll process for salary calculations, approvals, Salary Information File preparation, bank processing and WPS transmission before the first of the month rather than treating the first as the day on which payroll administration begins.
What Does the 85% WPS Compliance Threshold Mean?
The new Resolution increases the WPS compliance threshold from 80% to 85%.
At establishment level, a company is considered compliant with the WPS wage-payment requirement where it transfers at least 85% of the total wages due to its workers by the applicable due date.
At employee level, a worker may be treated as having received their wage for WPS monitoring purposes where they receive at least 85% of the wage to which they are entitled, where any difference results from legally permitted and properly documented deductions.
This rule must be interpreted carefully. It does not mean that an employer is legally permitted to pay employees only 85% of their contractual salary every month. Employees remain entitled to their agreed wages, subject only to deductions permitted under UAE employment law. The 85% figure is a WPS compliance measurement threshold, not a general right for employers to retain 15% of salary.
For example, if an employee's salary is AED 10,000, an employer cannot simply decide to pay AED 8,500 because this meets the WPS percentage. Any reduction from the employee's contractual entitlement must have a lawful basis, and supporting evidence may be required.
Employers should therefore ensure that payroll deductions are correctly documented and legally permissible rather than using the 85% threshold as an operational payroll target. The UAE Government's current guidance confirms the 85% threshold while expressly linking salary shortfalls to lawful deductions.
What Happens If a Company Misses the New WPS Salary Deadline?
Under the new framework, a payment made after the first day of the following Gregorian month is considered delayed for WPS purposes. MoHRE's enforcement process now starts significantly earlier than under the previous system.
The current escalation framework includes:
Day 1: Electronic monitoring of the establishment begins.
Day 2: MoHRE sends electronic notifications and warnings to the non-compliant establishment.
Day 5: Issuance of new work permits is suspended, and the establishment is notified of the reason for the suspension and warned to settle the outstanding wages.
Day 11: Administrative fines can apply. Where there is a repeated violation within six months, the establishment can also be reclassified into MoHRE's Third Category.
Day 16: For establishments meeting the applicable employee threshold, including cases involving 25 or more affected workers, MoHRE can automatically register labour disputes and impose additional work-permit restrictions.
Day 21: More serious enforcement measures can follow, depending on the circumstances, number of affected workers and history of non-compliance. These can include measures relating to enforcement of wage payments, precautionary attachment, travel restrictions on the person responsible for the establishment and referral to the Public Prosecution.
Not every measure applies identically to every employer. Some of the later stages depend on factors such as the number of affected employees, repeated violations and risks to labour-market stability.
The practical message for employers is nevertheless clear: under the new system, a payroll delay can begin affecting the company's ability to process employment transactions within only a few days.
This makes WPS compliance an operational business issue as well as an HR and payroll obligation.
Are There Exemptions from the UAE Wage Protection System?
Yes. Ministerial Resolution No. 340 of 2026 retains specific exclusions from WPS compliance.
The current excluded employee categories include:
Employees whose wage-related labour complaint has been referred to the judiciary
Employees subject to a valid work-abandonment report
Employees whose freedom is restricted by a competent authority and who cannot perform their work during that period, subject to the required notification and evidence
Employees on unpaid leave, where the required supporting documentation has been submitted to MoHRE
Seafarers working on vessels, subject to the applicable establishment request
Foreign employees of foreign establishments or UAE branches who receive their wages outside the UAE, subject to the applicable conditions, including employee approval
Employees holding mission work permits not exceeding three months
Certain categories of employers are also excluded from WPS compliance, including:
UAE nationals owning fishing boats
UAE nationals owning public taxis
Banks and financial institutions
Houses of worship
One notable change is that the 30-day WPS exemption previously available for new employees does not appear in the current list of exclusions under the 2026 framework. Employers should therefore avoid relying on older WPS guidance that still refers to a general 30-day new-employee grace period.
The official UAE Government portal, updated on 5 June 2026, lists the current exclusions under Ministerial Resolution No. 340 of 2026.
What Should Mainland Companies Do Differently Now?
The most important practical consequence of the new rule is that payroll can no longer be treated as an administrative process that begins after month-end.
For companies registered with MoHRE, the internal payroll timetable should be moved forward so that salaries can be transferred by the first day of the following month.
Employers should consider the following steps:
Set an Earlier Internal Payroll Cut-Off
Attendance, overtime, commissions, unpaid leave, deductions and other payroll adjustments should be collected and approved before the end of the month. The internal deadline should leave sufficient time for payroll preparation and review.
Complete Payroll Approvals Before Month-End
Companies that require several management approvals should review their approval process. A salary file waiting for director, finance or owner approval on the first of the month already creates unnecessary compliance risk.
Prepare and Validate the WPS File Early
The Salary Information File and employee payroll data should be checked before transmission. Incorrect employee information, salary figures or file formatting can result in rejection and create a delay even where the company intended to pay on time.
Allow Time for Bank and WPS Processing
Employers should not assume that initiating a transfer on the due date guarantees successful WPS processing. A sensible internal timetable should provide a buffer for rejected files, banking issues or corrections.
Document Salary Deductions
Where an employee receives less than their normal contractual wage because of a lawful deduction, the company should maintain the documentation supporting that deduction. The 85% WPS threshold should never be used as a substitute for correctly calculating and documenting employee entitlements.
Review New Employees Immediately
Because the previous general 30-day new-employee WPS exemption is no longer included in the current framework, HR and payroll teams should ensure new hires are incorporated into payroll processes promptly.
Reconcile WPS Every Month
Finance or HR should verify that salary transfers were successfully processed and that the establishment's WPS status reflects the payments made. Simply sending the payroll file should not be treated as the end of the process.
For many SMEs, the most effective response will be to move the payroll closing cycle into the final week of each month, giving HR, accounting and management enough time to identify discrepancies before the regulatory deadline.
Where an employment contract or company policy provides for an earlier salary payment date, that separate contractual commitment should also be respected. The first of the following month is the WPS regulatory due date, not permission to delay an earlier contractual entitlement.
Common Payroll and WPS Mistakes Mainland Employers Should Avoid
The new WPS timetable leaves employers with less room for administrative delay. Companies should therefore review not only when salaries are transferred, but also how the entire payroll process is organised.
Common mistakes include:
Starting Payroll on the First of the Month
The first day of the following Gregorian month is now the WPS due date for the previous month's salary. It should not be treated as the date on which payroll preparation begins. Companies should complete calculations, approvals and file preparation before month-end.
Assuming There Is Still a 15-Day Grace Period
The previous framework allowed employers to be treated as late after a longer period following the salary due date. Under the 2026 framework, a payment made after the first day of the following month is already considered delayed for WPS purposes, with compliance measures beginning shortly afterwards.
Initiating the Bank Transfer Without Checking Completion
Submitting a salary payment instruction does not necessarily mean that the wages have been successfully processed through WPS. Rejected files, incorrect employee details or banking errors can result in a salary remaining unpaid after the deadline. Employers should confirm successful processing rather than relying only on the date the payment instruction was submitted.
Treating the 85% Threshold as Permission to Reduce Salaries
The 85% figure is part of the WPS compliance mechanism. It does not allow an employer to routinely pay employees only 85% of their contractual wages. Any deduction must have a lawful basis and should be properly recorded.
Leaving Payroll Approvals Too Late
Where salary files require approval from finance, HR, management or the business owner, the approval process should be completed before the regulatory deadline. A delay in internal approval remains the employer's responsibility.
Failing to Plan Around Weekends and Public Holidays
Employers should incorporate non-working days and bank-processing requirements into the payroll calendar. Where the first day of the month creates a practical processing risk, the safer operational approach is to complete the salary transfer earlier.
Relying on Outdated WPS Procedures
Businesses should update internal payroll manuals, HR checklists and accounting procedures that still refer to the previous salary-payment timetable or older WPS exclusions. MoHRE's current guidance confirms that employers registered with the Ministry must pay through WPS on the applicable due date and that the new enforcement process begins from the days immediately following a missed payment.
Frequently Asked Questions About UAE Salary Payments and WPS in 2026
When must mainland companies pay salaries under the new rule?
For establishments registered with MoHRE, wages for the previous month are due on the first day of the following Gregorian month under the current WPS framework.
When did the new WPS rule take effect?
Ministerial Resolution No. 340 of 2026 governs the updated WPS framework. The new requirements took effect from 1 June 2026.
Is there still a 15-day grace period?
Employers should no longer operate on the assumption that they have an additional 15 days after the first of the month. A payment after the regulatory due date is considered delayed, and MoHRE's escalation measures begin from the second day following the due date.
Does every UAE company have to pay salaries on the first of the month?
The rule discussed in this article applies to establishments registered with MoHRE and subject to its WPS framework. It should not automatically be applied to every free zone or financial free zone employer, because different employment and payroll regimes may apply.
Does the employee need to receive 100% of the salary?
Employees remain entitled to their contractual wages subject to deductions permitted by UAE law. The 85% threshold used by WPS is a compliance measurement and does not provide employers with a general right to withhold 15% of an employee's salary. The official UAE Government guidance states that the 85% test applies where lawful deductions are involved.
What happens if salaries are paid late?
MoHRE can begin issuing notifications from the second day following the due date and can suspend new work permits from the fifth day for non-compliant establishments. Further fines and enforcement measures may follow depending on the duration, number of affected workers and whether the violation is repeated.
Should companies pay salaries before the first of the month?
There is nothing preventing an employer from processing payroll earlier.
From a practical risk-management perspective, companies may choose an earlier internal payroll deadline so that banking, WPS or file-processing problems can be corrected before the regulatory due date.
What if the employment contract provides an earlier salary date?
Employers should continue to respect their contractual obligations. The WPS deadline should not be interpreted as permission to postpone an earlier salary entitlement contained in the employment contract.
Can employees complain about delayed salaries?
Yes. Employees can contact MoHRE or use the Ministry's salary-complaint channels where wages have not been paid as required. The UAE Government specifically directs private-sector employees with unpaid or delayed salary concerns to MoHRE.
How NUR Advisors Group Can Help Mainland Employers Adapt to the New WPS Rules
The new salary payment timetable requires many mainland companies to rethink how payroll information moves between HR, accounting, management and the bank.
NUR Advisors Group can assist businesses with the practical HR and administrative processes required to maintain a more reliable payroll cycle.
Our support can include:
Reviewing existing payroll and salary-payment procedures
Establishing an appropriate monthly payroll calendar
Coordinating payroll information between HR, accounting and management
Reviewing employee salary and payroll records
Supporting WPS administration and payroll documentation
Helping businesses organise attendance, leave and deduction information before payroll cut-off
Reviewing onboarding processes so new employees are incorporated into payroll promptly
Monitoring recurring payroll compliance requirements
Supporting companies with HR administration and employee documentation
Coordinating with payroll providers, accountants and other professional advisers where required
For SMEs in particular, payroll delays are often not caused by an intention to withhold salaries. They arise because information arrives late, approvals are informal or responsibilities are unclear.
The new WPS timetable makes those weaknesses more consequential. A defined monthly payroll process, with clear responsibilities and an internal deadline before month-end, can reduce both compliance risk and disruption to employees.
MoHRE describes WPS as a core mechanism for ensuring the timely, accurate and regular payment of private-sector wages, and its upgraded system is specifically intended to strengthen transparency and compliance.
Need Help Adapting Your Payroll Process to the New UAE WPS Rules?
The new salary payment timetable means mainland employers need tighter coordination between HR, payroll, accounting, management approvals and WPS processing.
NUR Advisors Group can assist with payroll administration, HR processes, employee documentation and the practical coordination required to help businesses meet the new salary payment deadline.
Contact our team to review your current payroll process and identify where changes may be needed.
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