The UAE Ministry of Human Resources and Emiratization has introduced a new Ministerial Resolution No. 340 of 2026, which significantly reforms the Wage Protection System (WPS) for private sector employers, effective June 1, 2026. The Resolution introduces a unified salary payment deadline requiring wages to be paid on the first day of each Gregorian month, and raises the WPS compliance threshold from 80% to 85%.
In addition, the Resolution establishes a stricter escalation framework for delayed wage payments, including work permit suspensions, administrative penalties, and potential criminal referrals. It also expands exemptions from WPS requirements, removes the grace period previously afforded to new employees, and clarifies rules around payroll delegation to third parties.
We reviewed the impact of the Resolution in more detail in our LawFlash, which highlights the practical implications for employers, particularly the need to review payroll timing, deduction practices, and compliance procedures to avoid enhanced enforcement measures under the updated regime.