If your UAE work permit, employment visa renewal, or sponsorship depends on your employer paying salaries on time, the rules around what “on time” means just changed. MOHRE Ministerial Resolution No. 340 of 2026 on the Wage Protection System (WPS) came into force on 1 June 2026, repealing Ministerial Resolution No. 598 of 2022, and it removes the old grace period entirely. This is the most significant change to WPS since the system was introduced in 2009, and it directly affects anyone renewing, applying for, or sponsoring a work permit.
Published: 31 July 2026
Quick Answer
Under the new rules, every private-sector salary must be paid by the 1st of each month for the previous month’s work, with no grace period. MOHRE now monitors compliance from Day 2 after that deadline, freezes new work permit applications from Day 5 for non-compliant companies, and escalates through fines, labour disputes, and asset attachment by Day 21. A company stays technically compliant if at least 85% of total wages are paid on time and each employee receives at least 85% of their salary, but that threshold is a compliance buffer, not permission to routinely underpay.
The New Payment Deadline: No More Grace Period
Under the previous system, employers effectively had a 15-day grace period after the pay date before a late payment was flagged. Ministerial Resolution No. 340 of 2026 removes that grace period completely. The first day of every calendar month is now the official due date for the previous month’s wages, and any payment made after that date is legally considered delayed from Day 1, with no cushion.
Newly hired employees are also affected: the old 30-day grace period that used to apply to a worker’s first pay cycle has been eliminated. New employees must be inside WPS compliance from their very first payment, not after a settling-in period.
The Enforcement Ladder: What Happens After a Missed Payment
MOHRE’s escalation under Resolution No. 340 runs on a defined day-by-day timeline once the 1st-of-the-month deadline is missed:
- Day 2: MOHRE’s monitoring system flags the employer and issues notifications and warnings.
- Day 5: New work permit applications are frozen for the non-compliant company. This is the point where an employer trying to hire or process a new permit will hit an immediate block.
- Day 11: Fines apply to employers with repeat non-compliance.
- Day 16: For employers with 25 or more workers (counted across group companies collectively, in specific sectors including construction, security, and cleaning services), MOHRE can automatically register a labour dispute and suspend the company’s work permits entirely, not just new applications.
- Day 21: The most severe measures apply, including precautionary attachment of company assets, travel bans against responsible individuals, and referral to the Public Prosecutor.
Direct answer: if you are asking how many days a company has before its work permits are affected, the honest answer is two separate numbers. New permit applications can freeze from Day 5. Existing permits and the company’s broader ability to operate are at risk from Day 16 onward for larger non-compliant employers, with criminal and asset-related exposure from Day 21.
The 85% Compliance Threshold
Resolution No. 340 sets the compliance bar at 85% under Article 2: an employer is treated as compliant if at least 85% of total wages across the workforce are paid on time, and each individual employee receives at least 85% of their own salary, subject to lawful deductions. This is a rise from the previous 80% threshold, and it caps lawful WPS-related deductions at 15%, down from the 20% otherwise permitted under general UAE labour law.
It is important not to misread this threshold. Reaching 85% keeps a company out of the automatic enforcement ladder above; it does not mean an employer is entitled to withhold up to 15% of every salary as a matter of course. Underpayment outside a lawful, documented deduction remains a labour law violation regardless of whether the company stays technically “compliant” on the WPS percentage.
Who Is Exempt Under Article 4
Not every worker or establishment falls under WPS. Article 4 of Resolution No. 340 lists 11 exempt categories. The confirmed exemptions include:
- Workers with a wage-related labour claim already referred to a competent court, or for which an executive instrument has been issued, limited to the wage amount and period covered by that claim.
- Foreign employees of foreign establishments or their UAE branches who are paid outside the UAE, where the establishment has requested this from the Ministry and the employees themselves have approved it.
- Employees whose liberty is restricted under an order or judgment from a competent authority, for the period during which they cannot work.
- Employees holding a mission work permit valid for no more than three months.
- Public taxis owned by individual UAE citizens.
- Banks and financial institutions.
- Places of worship.
- Workers who have filed a wage-related labour complaint already referred to the judiciary, or who have been reported absent under a work abandonment report.
This is not the full enumerated list of all 11 categories; if your establishment or role looks like it might fall into one of these, confirm directly with MOHRE or a licensed PRO service rather than assuming exempt status. Note also that DIFC and ADGM run their own separate wage protection regimes and are outside the federal WPS covered by Resolution No. 340, while most other UAE free zones follow the federal MOHRE rules.
WPS 2.0: Real-Time Monitoring, Not Monthly Review
The other major shift under Resolution No. 340 is how fast MOHRE sees a missed payment. The updated WPS integrates real-time data sharing between MOHRE, the Central Bank, and Al Etihad Payments, the national payment services operator. Instead of reviewing salary transfer files after the fact, non-compliance is now flagged from the salary due date itself, which is why the enforcement ladder above starts counting from Day 2 rather than after a monthly reconciliation cycle.
Employer Liability Even When Payroll Is Outsourced
A common assumption is that using a third-party payroll provider or PRO service shifts legal responsibility away from the employer. It does not. Resolution No. 340 expressly permits an employer to delegate payroll processing to a third party, but only on condition that MOHRE is supplied with the delegate’s details and the exact scope of the delegation. Even after that delegation is registered, the establishment holding the labour licence remains fully liable for WPS compliance. If the delegate fails to pay wages on time, every step in the enforcement ladder, from the Day 2 notification through to Day 21 asset attachment and prosecution referral, is applied against the employer, not against the payroll provider. Any business relying on outsourced payroll should confirm its provider’s transfer cut-off dates leave a real margin before the 1st of the month, not payment scheduled for the deadline itself, and should register the delegation with MOHRE rather than treating it as a private arrangement.
What Employees Should Do
If a salary has not arrived by the 1st of the month, an employee does not need to wait for MOHRE to act. Salary complaints can be filed directly through the MOHRE app, the MOHRE call centre, or the Ministry’s website, and a documented complaint is also the trigger that starts formal enforcement against the employer. Keep salary slips, bank statements, and any employer correspondence about a delayed payment, since these become the supporting evidence for a labour dispute if the delay is not resolved.
What Employers Should Do Now
- Move the internal payroll cut-off date well ahead of the 1st of the month, accounting for the payroll provider’s own processing time, not just the bank transfer date.
- Confirm which of the 11 categories of workers and establishments listed in Resolution No. 340 are outside WPS scope, rather than assuming a category is exempt.
- Review any recurring salary deductions against the 15% cap and confirm each deduction has a lawful basis and documentation.
- If payroll is outsourced, get written confirmation of the provider’s transfer timeline against the new deadline, since the employer carries the liability regardless of the provider’s performance.
Enforcement Timeline at a Glance
| Day | What happens | Who is affected |
|---|---|---|
| 1st of the month | Deadline for the previous month’s wages, no grace period | All in-scope employers |
| Day 2 | MOHRE monitoring flags the employer, notifications and warnings issued | Non-compliant employers |
| Day 5 | New work permit applications frozen | Companies applying for or renewing permits |
| Day 11 | Fines applied for repeat non-compliance | Repeat offenders |
| Day 16 | Automatic labour dispute registration, work permits suspended | Employers with 25+ workers in specific sectors |
| Day 21 | Asset attachment, travel bans, Public Prosecutor referral | Responsible individuals at non-compliant companies |
Frequently Asked Questions
When is the salary payment deadline under the new WPS rules?
The 1st day of each calendar month, for the previous month’s work. There is no grace period; a payment made after that date is considered delayed immediately.
Is there still a grace period for new employees?
No. The previous 30-day grace period for a new hire’s first pay cycle has been removed. New employees must be paid within the standard WPS timeline from their first payment onward.
How many days does an employer have before work permits are affected?
New work permit applications can be frozen from Day 5 after a missed deadline. Existing permits and broader operations are at risk from Day 16 for employers with 25 or more workers in specific sectors, escalating to asset attachment and prosecution referral by Day 21.
What is the 85% compliance threshold?
An employer is considered compliant if at least 85% of total wages are paid on time and each employee receives at least 85% of their salary, subject to lawful deductions. It replaces the previous 80% threshold and caps lawful deductions at 15%.
Does reaching 85% mean an employer can legally withhold up to 15% of salary?
No. The 85% figure is a compliance buffer that keeps a company out of the automatic enforcement ladder. It does not authorize routine underpayment; any deduction beyond what is lawfully documented remains a labour law violation.
Is the employer still responsible if a third-party payroll company causes the delay?
Yes. The company holding the labour licence is the party MOHRE holds accountable, regardless of who processes the salary transfer. The employer can separately pursue the payroll provider, but that does not pause MOHRE’s enforcement timeline.
How does MOHRE find out about a missed payment so quickly?
WPS 2.0 links MOHRE with the Central Bank and Al Etihad Payments in real time, so non-compliance is flagged from the salary due date itself rather than after a delayed monthly review.
What resolution replaced the old wage protection rules, and when did it take effect?
Ministerial Resolution No. 340 of 2026, effective 1 June 2026, repealing Ministerial Resolution No. 598 of 2022 in full.
Are all companies and workers covered by these rules?
No. Resolution No. 340 lists 11 categories of workers and establishments that remain outside WPS scope. Confirm your specific category rather than assuming it is covered or exempt.
What should an employee do if their salary is late?
File a complaint through the MOHRE app, call centre, or website as soon as the deadline passes, and keep salary slips, bank statements, and any employer correspondence as evidence.
Does WPS apply inside free zones like DIFC and ADGM?
No, not directly. DIFC and ADGM operate their own separate wage protection regimes and sit outside the federal WPS covered by Resolution No. 340. Most other UAE free zones follow the federal MOHRE rules, so confirm which regime applies to your specific free zone.
Can an employer use a payroll company and stay compliant if that company causes a delay?
Yes, but only if the delegation is registered with MOHRE first, with the delegate’s details and scope on file. Registering the delegation does not remove the employer’s liability. If the delegate misses the deadline, the enforcement ladder still runs against the establishment holding the labour licence, not the payroll company.
Employers structured through family-owned holding arrangements should note that WPS compliance sits entirely separate from how the ownership above the company is taxed. Even where the Corporate Tax position is handled under a Family Foundation or Unincorporated Partnership structure, the operating company itself remains fully liable for on-time payroll under Resolution No. 340.
Get Your WPS Compliance Checked
If your company’s payroll timeline is not clearly ahead of the new deadline, or if you are unsure whether your workforce category falls inside or outside WPS scope, this is worth reviewing before a missed payment triggers the Day 5 permit freeze. Yalah Dubai helps employers align payroll and permit processes with MOHRE’s current rules, and helps employees understand their options when a salary payment is delayed.
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