Skip to content

Guide · Payroll

WPS in the UAE: the 2026 salary rules

Since June 2026 salaries are due by the 1st of the month, with no grace period. What changed, who it covers, what happens if you are late, and a simple monthly routine.

Updated 27 October 2026 · A guide, not legal or tax advice

What WPS is

The Wage Protection System (WPS) is how the Ministry of Human Resources and Emiratisation (MOHRE) checks that private-sector employees are paid. Every month you send salaries through a bank, an exchange house or another approved agent, with a salary information file (SIF) that lists each employee, their MOHRE person code and what they are paid. MOHRE matches what you paid against what you owe.

What changed in June 2026

Ministerial Resolution No. 340 of 2026 replaced the 2022 rules from 1 June 2026. Three things matter for a small business:

  • Pay by the 1st. Salaries for a month must reach employees through WPS by the 1st of the next month. The 15-day grace period has been removed.
  • The 85% rule. You are treated as compliant if at least 85% of total wages due is paid on time. Short payments must come from deductions the law allows.
  • Penalties start fast. Action now builds day by day from the deadline, as below.

Bank transfers take time, so most payroll teams now send the file around the 27th to 29th.

What happens if salaries are late

DayWhat MOHRE can do
2Warnings and notifications to the employer
5New work permits blocked until wages are paid
11Administrative fines and a possible downgrade of the company’s MOHRE category, especially for repeat cases within six months
16A labour dispute registered automatically for affected workers, with tighter measures for larger cases
21Court action to recover wages, asset restrictions and a travel ban for the person responsible

A lower MOHRE category also means higher fees and fewer visas, so a late month can cost far more than the salaries themselves.

Who is covered, and who is not

WPS covers MOHRE-registered private-sector companies, including free zone companies whose staff hold MOHRE work permits. DIFC and ADGM have their own systems. Some employees do not count as violations, for example those in a court wage dispute, reported for absconding, on unpaid leave, or on short permits of up to three months.

A monthly routine that keeps you safe

  1. By the 20th: confirm joiners, leavers, unpaid leave and any lawful deductions.
  2. By the 25th: check each employee’s MOHRE person code and bank or card details.
  3. 27th to 29th: send the salary file and the funds to your WPS agent.
  4. By the 1st: confirm the payment shows as received, and keep the payslips.
  5. When someone leaves: pay final dues, including gratuity, within 14 days. Our gratuity calculator works it out.

Substrate ERP

Your WPS file, ready before the 1st

Substrate's People module keeps every employee's MOHRE details, salary and allowances in one place, prepares the WPS salary file each month for you to approve, and reminds you before the deadline.

  • WPS salary file prepared for you
  • Reminders before the 1st
  • Gratuity and final settlements
Get early access From AED 9.99 per user a month (minimum 2 users), excluding VAT, with a 14-day free trial. Questions: substrateaierp@gmail.com

Questions owners ask

What is WPS in the UAE?

The Wage Protection System is the electronic system the Ministry of Human Resources and Emiratisation (MOHRE) uses to check that private-sector salaries are paid in full and on time, through banks, exchange houses and other approved agents.

When must salaries be paid under WPS in 2026?

From 1 June 2026, under Ministerial Resolution No. 340 of 2026, salaries must be paid through WPS by the 1st of the following month. The old 15-day grace period is gone.

What is the 85% rule?

A company counts as compliant if at least 85% of the total wages due is paid on time. Paying less than the full wage is only accepted when the difference comes from deductions the law allows, and workers can still claim any unpaid balance.

What happens if salaries are late?

Warnings start on day 2. New work permits can be blocked from day 5, fines and a lower MOHRE category can follow from day 11, a labour dispute can be registered automatically from day 16, and from day 21 the case can go to court, with travel bans for the person responsible.

Does WPS apply in free zones?

It applies to MOHRE-registered companies, including free zone companies whose staff hold MOHRE work permits. DIFC and ADGM run their own employment frameworks.

Sources

More free tools and guides