Short answer: Since 1 June 2026, every private-sector employer registered with MoHRE must pay each month’s salary by the 1st of the following month through the Wage Protection System (WPS). There is a 10-day grace period, down from 15 days. Penalties start the day after the deadline and get worse quickly.
What changed on 1 June 2026
The new rule is Ministerial Resolution No. 340 of 2026. It replaces Resolution 598 of 2022.
| Old rule | New rule (from 1 June 2026) | |
|---|---|---|
| Salary due date | Per contract / sector | 1st of the next month, for everyone |
| Grace period | 15 days | 10 days |
| “Paid on time” means | Full salary | At least 85% of the monthly wage paid by the deadline |
Example: Salary for June 2026 is due by 1 July 2026. Anything paid after the 1st is officially “delayed”.
The 85% rule
You are treated as having paid on time if at least 85% of the employee’s total monthly wage reaches them by the deadline, after legally allowed deductions. The employee can still claim the remaining balance.
Penalty timeline if salaries are late
| Days late | What happens |
|---|---|
| Day 2 | Warnings to the employer |
| Day 5 | Work permit restrictions (new permits blocked) |
| Day 11 | Further administrative measures |
| Day 16 | Automatic labour dispute filed |
| Day 21 | Executive orders, asset seizure, travel bans, referral to Public Prosecution |
Who the rule covers
- All private-sector establishments registered with MoHRE
- Most free zones, including JAFZA, DAFZA and DMCC
- Not covered: DIFC and ADGM, plus certain sectors (banks, fishing boats, individually owned taxis, places of worship) and some worker types (short-term mission permits, approved unpaid leave, workers reported absconding)
Outsourcing payroll does not move the legal responsibility. The employer is still liable if salaries are late.
How to stay compliant: 5 practical steps
- Move your payroll run earlier. Aim to process by the 25th so bank/WPS files clear before the 1st.
- Keep a salary buffer in the WPS account, ideally one month’s payroll.
- Lock attendance and overtime a few days before month-end.
- Reconcile WPS files (SIF) against your payroll register every month.
- Document deductions properly, so the 85% calculation is defensible.
Common mistakes
- Still following old contract dates (for example, paying on the 7th)
- Late approval of the bank file because the signatory is travelling
- Missing new joiners in the WPS file
- Paying part of the salary in cash outside WPS
FAQ
What is the new salary deadline in the UAE?
From 1 June 2026, salaries are due by the 1st of the following month, with a 10-day grace period.
Does the new WPS rule apply to free zone companies?
Yes for most free zones, including JAFZA, DAFZA and DMCC. DIFC and ADGM are exempt.
What happens if I pay salaries late?
Warnings from day 2, work-permit blocks from day 5, an automatic labour dispute from day 16, and possible travel bans and prosecution from day 21.
Is paying 85% of the salary enough?
It counts as on time for WPS purposes, but the employee is still owed the remaining balance.
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Related guides: Accounting & bookkeeping services · HR management system · Accounting packages · AML, UBO & ESR compliance
Sources: Ministerial Resolution No. 340 of 2026 (MoHRE), as summarised by Deloitte Middle East, Zoho Payroll Academy and Gulf News.
