UAE WPS rules now put the salary deadline on the first day of the month. According to the UAE Government's official portal, wages for the previous month are due on the first day of each Gregorian month under Ministerial Resolution No. 340 of 2026 on the Wage Protection System (WPS). Late payment starts a ladder of measures from the second day, and the ladder climbs quickly for companies with many unpaid workers. This guide sticks to the official u.ae page that quotes the Ministry of Human Resources and Emiratisation (MoHRE), read on 9 November 2026. It covers the deadline, how salaries must be paid, the day-by-day measures, who is excluded and what finance teams can do to avoid a late run. It is general information, not legal advice, and details can change, so confirm them with MoHRE or an adviser.
Key takeaways
- Salaries for the previous month are due on the first day of each Gregorian month, and establishments registered with MoHRE must pay through the WPS.
- Employers must transfer at least 85 per cent of the total wages due on time, where lawful deductions apply.
- Measures begin on the second day after the due date. On the fifth day new work permits are suspended, and a labour dispute is registered automatically on the sixteenth day.
- Payment goes through banks, exchange houses or financial institutions authorised by the Central Bank of the UAE.
- No fine amounts were found on the page read, so this guide does not quote any.
What the first-of-month rule says
The official page states that paying wages on the due date is the responsibility of every employer, and that all establishments registered with MoHRE must pay through the Wage Protection System. It cites Ministerial Resolution No. 0340 of 2026, also written as No. 340, and says the previous month's salaries are due on the first day of each Gregorian month. The page was last updated on 14 October 2026.
The page also states that employers must transfer at least 85 per cent of total wages due to employees on time where lawful deductions apply. The wording leaves some questions open, such as how the 85 per cent figure interacts with the full-payment duty, so payroll teams should read the resolution itself or ask MoHRE. The effective date of the resolution was not stated on the page, and the PDF of the resolution could not be opened for this review.
How salaries must be paid under the UAE WPS
Under the WPS, private sector salaries are transferred through banks, exchange houses or financial institutions that the Central Bank of the UAE has authorised for the service. The system was developed by the Central Bank so that MoHRE can keep a database of wage payments and watch whether employers pay in full and on time. Payment can be in dirhams or in another currency if both parties agreed to it in the employment contract.
What happens if salaries are late
The page lists the measures as a timeline counted from the due date. Each step is listed for the establishments the page targets, so size and sector matter.
- From the due date: electronic monitoring of all establishments until payment is proven.
- From the 2nd day: notifications and alerts to non-compliant establishments.
- On the 5th day: suspension of new work permits for the establishment, with notice to the owner and a warning to pay.
- On the 11th day: the administrative fine under Cabinet Resolution No. 21 of 2020 and re-classification into the Third Category under Ministerial Resolution No. 209 of 2022, for a repeated violation within six months.
- On the 16th day: automatic registration of an individual or collective labour dispute and suspension of work permits, for establishments with 25 or more workers and for related establishments in named sectors once unpaid workers reach 25.
- On the 21st day: an executive instrument for payment where the establishment has fewer than 50 workers, precautionary attachment, a travel ban on the person in charge and, for larger or repeat cases, referral to the Public Prosecution.
The named sectors are construction, transport and storage, security services, cleaning services, recruitment agencies and domestic worker recruitment offices. The page does not print the amount of the fine, and this guide does not guess it.
Who is excluded from WPS compliance
The page excludes certain workers: those whose wage-related complaint has been referred to the judiciary, workers reported absent under a work-abandonment report, workers whose freedom is restricted by a competent authority, workers on unpaid leave with documents submitted, seafarers on vessels on request, foreign workers of foreign establishments paid outside the UAE on request and with their approval, and holders of mission work permits not exceeding three months. It also excludes some employers: UAE nationals owning fishing boats or public taxis, banks and financial institutions, and houses of worship. Free zones are not mentioned on the page, so a free-zone employer should confirm its position with its own authority.
A payroll checklist for the first of the month
- Close payroll early so the transfer file is ready before the last working days of the month.
- Check funding in the account used for the WPS file well before the due date.
- Reconcile deductions so any lawful deduction is documented before the file is sent.
- Confirm each bank or exchange house confirmation and keep proof of payment.
- Watch the calendar for weekends and public holidays that fall on or before the first.
- Escalate fast if a payment fails, since the fifth day suspends new work permits.
Where automation fits
Most late payments are process failures, not cash problems: an approval waiting in someone's inbox, a file that fails validation or a holiday nobody counted. Businesses often fix this with reminders and approvals built on an automation tool, as compared in this guide to n8n, Zapier and Make. Companies with their own HR or payroll system may instead need custom software development so payroll, approvals and bank files connect without manual steps. CreativeIn Tek does not provide WPS services, is not a bank or exchange house, and cannot certify that a payroll meets the rules. UAE businesses preparing for tax-side changes can also read about UAE e-invoicing in 2027.
Frequently asked questions
When are salaries due under the UAE WPS?
The official page says salaries for the previous month are due on the first day of each Gregorian month under Ministerial Resolution No. 340 of 2026.
What happens on the fifth day of late payment?
The page lists suspension of new work permits for the establishment, with notification to the owner and a warning to pay.
How much is the fine for late salaries?
The page refers to the fine under Cabinet Resolution No. 21 of 2020 but does not print an amount. Check the resolution or MoHRE for the current figure.
Are free zone companies covered?
The page speaks of establishments registered with MoHRE and does not mention free zones. A free-zone company should ask its own authority.
Last reviewed: 9 November 2026, against the UAE Government's official pages on payment of salaries and wages and employment laws and regulations in the private sector. The MoHRE resolution PDF could not be opened during this review. This article is general information and not legal advice. Businesses that want payroll approvals and bank files connected can talk to CreativeIn Tek about custom software.
