UAE WPS salary deadline 2026: what Resolution 340 changes
Ministerial Resolution 340 of 2026 makes wages due on the first of each month with no grace period and an 85% compliance test. The rule, the escalation table, and a payroll calendar.
Since 1 June 2026, UAE private sector wages are due on the first day of the following Gregorian month. Ministerial Resolution 340 of 2026, issued on 12 May 2026, repeals Resolution 598 of 2022 and its 15 day window. This guide covers the rule, the 85% test, the escalation steps, the exclusions and a payroll calendar that lands the Salary Information File (SIF) before the first. Figures were read on 4 September 2026 from the linked sources. It is a guide, not legal advice.
What changed on 1 June 2026
| Item | Resolution 598 of 2022 | Resolution 340 of 2026 |
|---|---|---|
| Due date | Based on the payday registered in the employment contract | First day of each Gregorian month, for the preceding month |
| Payment counts as late | After 15 days from the due date, unless the contract said otherwise | Any payment after the due date |
| Establishment threshold | More than 80% of total wages of eligible employees | At least 85% of total wages due, transferred by the due date |
| First contact from MOHRE | Reminders on the third and tenth day | Notifications and alerts from the second day |
| New work permits suspended | By the seventeenth day | On the fifth day |
| New employees | Exempt within 30 days of the due date | No exemption |
Sources: MOHRE's texts of Resolution 598 of 2022 and Resolution 340 of 2026; Morgan Lewis on new employees.
The rule: wages for a month are due on the first day of the next month
Article 1 makes "the first day of each Gregorian month" the unified due date for the preceding month's wages, and "any payment made after such date shall be deemed a delay in wage payment". Wages go through the Wage Protection System and the establishment must submit proof of payment (MOHRE, Resolution 340 of 2026). Article 5 allows delegation, but the establishment remains responsible and every measure applies to it if the delegate is late. Nothing in the text moves the due date when the first is a weekend or public holiday, so aim for the last working day before it.
The 85% test, for the establishment and for each worker
Article 2 sets two thresholds. An establishment is compliant where, no later than the due date, it transfers "no less than 85% of the total wages due to its workers". A worker is not treated as unpaid if they receive at least 85% of their entitled wage, provided the difference comes from lawful deductions or withholdings under Article 25 of Federal Decree-Law 33 of 2021 (MOHRE, Resolution 340 of 2026). MOHRE's release of 4 June 2026 repeats the establishment test and calls the approach "gradual and balanced" (MOHRE news, 4 June 2026). Article 2 opens "without prejudice to the workers' right to their full entitled wages": the threshold measures compliance, it is not permission to pay 85% and settle the rest later.
The escalation table: day 1 to day 21
Annex 1 lists six procedures. Timing follows the annex wording; the bracketed day numbers are how Gulf News and Khaleej Times summarised them.
| Timing after the due date | Measure | Who it targets |
|---|---|---|
| From the due date until payment is proven (day 1) | Electronic monitoring | All establishments |
| From the second day (day 2) | Notifications and alerts to pay | Non-compliant establishments |
| Fifth day (day 5) | New work permits suspended, owner notified and warned | Non-compliant establishments |
| Eleventh day (day 11) | Fine under Cabinet Resolution 21 of 2020; reclassification into the Third Category | Repeat violation within six months |
| Sixteenth day (day 16) | Automatic labour dispute for the affected workers; work permits suspended | 25 or more workers, or groups with 25 or more unpaid workers in construction, transport and storage, security, cleaning, recruitment agencies or domestic worker recruitment offices |
| Twenty-first day (day 21) | Executive instrument for payment (under 50 workers) or collective dispute (50 or more); precautionary attachment; travel ban on the person in charge; Public Prosecution notified for repeat violations in two consecutive months above 50 workers | 50 or more workers, groups with 50 or more unpaid workers in the same sectors, or any establishment posing a risk to the labour market |
Source: Annex 1 of Resolution 340 of 2026. Fine amounts sit in Cabinet Resolution 21 of 2020 and are not reproduced here.
For September 2026 wages, due on 1 October 2026 and counting that as day 1: notifications 2 October, permit suspension 5 October, repeat offender fines 11 October, automatic disputes 16 October, attachment and travel bans 21 October. Read literally the annex may run a day later; plan for the earlier date.
Who is excluded
Article 4 excludes eleven cases: wage claims already before a court or under an executive instrument; workers under an absconding report; workers whose liberty is restricted by an order or judgment; approved unpaid leave, with documents submitted; seafarers; foreign workers of foreign establishments paid outside the UAE; mission permits of three months or less; fishing boats and public taxis owned by citizens; banks and financial institutions; and places of worship (MOHRE, Resolution 340 of 2026). Domestic workers fall under Resolution 675 of 2022, which makes WPS mandatory for specific domestic jobs and optional for the rest (MOHRE WPS guidance).
What a payroll team has to change
Cut-off dates. The 15 day window let a run close in the second week of the next month. Now attendance, overtime, commission and deduction cut-offs move into the last week of the month being paid. Anything earned after the cut-off goes into the next run; put that in the payroll policy and contracts, with advice on the wording, since Article 2 protects the full wage.
SIF generation timing. Generate the file after final approval and validate it the same day: IBANs, days in period, amounts and the SCR total. A rejected file costs a day you no longer have.
Bank and exchange house cut-offs. The resolution sets none, so ask your agent in writing how many working days it needs between upload and credit, then build the calendar backwards from the first.
Variable pay. Overtime, commissions and encashments go into the EDR as variable income, itemised in an EVP record (DIB SIF guidelines). The last days of a month cannot be worked, approved, filed and credited by the first, so variable pay needs an earlier cut-off or a documented policy of payment one cycle in arrears.
A payroll calendar that lands the SIF before the first
A worked example for a 30 day month; the lead times are the employer's inputs, not rules.
| Date | Step |
|---|---|
| 24th | Attendance, overtime, commissions, unpaid leave and deductions locked; joiners, leavers and exclusions confirmed |
| 25th | Payroll calculated, exceptions reviewed, register signed off |
| 26th | SIF generated, validated and handed to the bank or exchange house; WPS account funded |
| 27th to 30th | Agent processing window (the agent's figure); rejections fixed the same day |
| 1st of the next month | Wages credited; proof of payment retained |
| 2nd onward | MOHRE notifications monitored and cleared before the fifth |
What this means for the SIF file
The SIF is a comma separated text file. Each employee has an EDR row: record type, the employee's unique ID from the labour authority, the agent's nine digit routing code, the employee's 23 character account, pay start and end dates in the same month, days in period, fixed income, variable income and unpaid leave days. An EVP row itemises variable pay. One SCR row carries the employer ID, bank routing code, creation date and time, salary month, EDR count, total salary and currency; the total is validated to equal the sum of the fixed and variable amounts in every EDR record (DIB SIF guidelines). UAE IBANs are 23 characters beginning AE (iban.com, IBAN structure by country). Negative amounts are not permitted and cause the file to be rejected, so deductions are netted first, and unpaid leave days should match the leave notified to MOHRE under Article 4.
Month-end checklist
- Cut-off dates published, with overtime and commissions closing at least a week before month end.
- Joiners in the month included; the new employee exemption no longer exists.
- Leavers' final settlements calculated, including gratuity (see our UAE gratuity calculator).
- Article 4 cases such as unpaid leave documented and notified to MOHRE before the file is cut.
- SIF validated: IBAN length, days in period, dates in the salary month, SCR total equal to the sum of EDRs.
- WPS account funded by the agent's cut-off, proof of payment stored, and the compliance ratio checked: transferred on time over total wages due, target 100%, floor 85%.
Frequently asked questions
Is there still a grace period? No. Resolution 598 of 2022 treated an employer as late only after 15 days; Resolution 340 of 2026 treats any payment after the first of the month as a delay.
Can we keep paying on the 25th? Yes. The first is a deadline, not a payday, provided the transfer goes through WPS and is proven.
Does the 85% rule let us hold back 15%? No. Article 2 preserves the right to the full wage and the per worker limb covers lawful deductions only. The threshold decides when measures start, not what is owed.
Where do GOSI and Mudad fit? They are Saudi systems and are unaffected; our GCC payroll compliance guide covers both.
Sources
- MOHRE, Ministerial Resolution 340 of 2026 concerning the Wage Protection System (PDF)
- MOHRE, Ministerial Resolution 598 of 2022 regarding the Wages Protection System (PDF)
- MOHRE news, 4 June 2026, new Wage Protection System decision adopts a gradual approach
- MOHRE, Wage Protection System guidance page
- Morgan Lewis, UAE introduces new Wage Protection System resolution effective 1 June 2026
- Gulf News, 18 May 2026, UAE sets monthly salary deadline for private sector from June 1
- Khaleej Times, 19 May 2026, UAE new salary payment rule explained
- Dubai Islamic Bank, SIF creation guidelines (PDF)
- iban.com, IBAN structure by country
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