The UAE Wage Protection System (WPS), explained
Mainland employers in the UAE pay salaries through WPS so MoHRE can see that every worker is paid in full and on time. Here is how it works, when a salary counts as late, and the monthly routine that keeps you out of trouble.
The short answer
Every establishment registered with MoHRE pays wages through a bank, exchange house or other approved agent that sends a Salary Information File (SIF) to the system. Since 1 June 2026, Ministerial Resolution 340 of 2026 has replaced Resolution 598 of 2022. It makes wages due on the first day of each month for the month before, and MoHRE starts to act from the second day after that.
To count as compliant, an establishment must transfer at least 85% of the wages due by the first of the month, up from 80% under the old rule.
How a WPS payment works
- The employer opens a WPS account with an approved bank, exchange house or financial agent
- Each month HR prepares the SIF: each employee’s MoHRE personal number, the agent routing code, the account or card, the fixed and variable pay, and days of unpaid leave
- The agent pays the employees and reports the file to MoHRE
- Employees without a bank account can be paid to a payroll card
- Domestic workers can be paid through WPS too, and are required to in many cases
When pay counts as late, and what follows
Payment after the first of the month counts as late. The old 15-day period no longer sets the date, and the measures run in steps, counted from the due date:
| Day | What can happen |
|---|---|
| Day 2 | Electronic alerts and notifications |
| Day 5 | New work permits suspended, with a warning |
| Day 11 | For a repeat delay within six months: an administrative fine and a move to the third category |
| Day 16 | A labour dispute registered automatically, generally for establishments with 25 or more workers, and further permit suspension |
| Day 21 | For larger establishments, generally 50 or more workers: attachment of assets, a travel ban on the person responsible and referral to the public prosecution in repeat cases |
The size thresholds and sectors differ by step, so check the resolution for your case. An outsourced payroll provider does not move the duty: paying on time stays with the employer.
Who is outside WPS
- Free zone companies that are not registered with MoHRE follow their free zone’s payroll rules
- Some employees are outside the count, such as those with a wage complaint before the courts, those reported for absconding, those on documented unpaid leave and seafarers on vessels; check the resolution for the full list
A monthly WPS checklist
- Close attendance and leave first, so unpaid days are right
- Check every new joiner has a MoHRE personal number and an account or card
- Build the SIF from payroll, not by hand
- Send it a few working days before the first of the month, to allow for bank cut-offs, weekends and public holidays
- Check the agent’s confirmation and keep it with the payroll
- Record the reason for any short or zero salary (unpaid leave, absence, end of contract)
Free tools for this
Sources
- UAE government portal (u.ae): payment of wages
- Ministerial Resolution No. 340 of 2026 on the Wage Protection System (MoHRE)
- Baker McKenzie: UAE resolution affecting payroll (June 2026)
- Ministry of Human Resources and Emiratisation (MoHRE)
Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.
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