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HR & Employment

UAE Wage Protection System: Salaries Due on the 1st of Each Month, and What Happens If You Pay Late

UAE private-sector salaries for each month are due on the first day of the next month, and at least 85% of total wages must be paid on time through the WPS. The day-by-day measures MoHRE takes against late payers, and who is excluded.

HR & EmploymentUpdated 31 October 20265 min read
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Every private-sector employer registered with the UAE Ministry of Human Resources and Emiratisation (MoHRE) must pay wages through the Wage Protection System (WPS). The rules are now set by Ministerial Resolution No. 340 of 2026 concerning the Wage Protection System, which fixes one due date for salaries and a timetable of escalating measures against employers who pay late. For Pakistani groups with UAE subsidiaries, and for any business running UAE payroll from abroad, the payment date is now the first thing to check.

In short: salaries for the previous month are due on the first day of each Gregorian month. To pay on time, an employer must transfer at least 85% of the total wages due. MoHRE sends alerts from the second day after the due date, suspends new work permits on the fifth day, and can then move to fines, labour cases, travel bans and referral to the Public Prosecution.

The due date and the 85% rule

Under Ministerial Resolution No. 340 of 2026, salaries for the previous month are due on the first day of each Gregorian month, and employers must transfer at least 85 per cent of the total wages due to their employees on time, where lawful deductions apply. October's salaries, for example, are due on 1 November. Wages are transferred through banks, exchange houses or financial institutions authorised by the Central Bank of the UAE, and may be paid in dirhams or in another currency agreed in the employment contract.

Plan payroll cut-offs, approvals and bank processing times so that funds reach employees by the 1st. The UAE Labour Law sets no general minimum salary, but it requires wages to be enough to meet employees' basic needs.

What happens if salaries are late

Days are counted from the due date.

WhenWhat MoHRE does
Due dateMonitors every establishment electronically until payment is proven
Day 2Sends notifications and alerts to establishments that have not paid
Day 5Suspends new work permits for the establishment, tells the owner why and warns them to pay
Day 11Where the establishment has repeated the violation within six months: an administrative fine under Cabinet Resolution No. 21 of 2020, and reclassification into the Third Category under Ministerial Resolution No. 209 of 2022
Day 16Registers a labour dispute for the affected workers automatically and suspends work permits, for establishments with 25 or more workers, and for establishments with the same owner in construction, transport and storage, security, cleaning and recruitment where 25 or more workers are unpaid
Day 21An executive instrument for payment of wages (fewer than 50 workers) or a collective labour dispute (50 or more); precautionary attachment against the establishment; a travel ban on the person in charge; and, for establishments with more than 50 workers that repeat the violation within two consecutive months, referral to the Public Prosecution

The day 21 measures can also be applied, whatever the size of the establishment, where there is a risk to the stability of the labour market.

Who is outside the WPS

Employees

  • those whose wage complaint has been referred to the courts;
  • those reported absent under a "work abandonment" report;
  • those whose freedom is restricted by an order or judgment, while they cannot work, if MoHRE is notified with supporting documents;
  • those on unpaid leave, if supporting documents are submitted to MoHRE;
  • seafarers working on vessels, at the establishment's request;
  • foreign workers of foreign establishments or their UAE branches who are paid outside the UAE, at the establishment's request and with the workers' approval;
  • workers holding mission work permits of up to three months.

Employers

  • UAE nationals who own fishing boats or public taxis;
  • banks and financial institutions;
  • houses of worship.

A checklist for employers

  • Set the salary payment date so that wages reach employees' accounts by the 1st of each month
  • Check each month that at least 85% of total wages due is paid on time, and document any lawful deductions
  • Report absences, unpaid leave and other excluded cases to MoHRE with supporting documents, so they are not treated as late payments
  • If an outside provider runs your payroll, agree a cut-off well before the 1st: paying wages on the due date remains the employer's responsibility
  • Keep a cash buffer at month end: a delay of five days stops new work permits
  • Review employment contracts for the currency and method of salary payment

How Veridian can help

Our HR consulting practice reviews UAE payroll processes, salary structures and employment contracts for groups with staff in the Emirates, working with locally licensed professionals in the UAE where dealings with MoHRE or formal representation are needed. For UAE tax, see our UAE Corporate Tax and VAT guide; for Saudi payroll rules, our note on the new Nitaqat wage thresholds. Book a consultation.

Official sources

Frequently asked questions

When must UAE private-sector salaries be paid?

Under Ministerial Resolution No. 340 of 2026, salaries for the previous month are due on the first day of each Gregorian month and must be paid through the Wage Protection System.

How much of the payroll must be paid on time under the UAE WPS?

At least 85% of the total wages due to employees, where lawful deductions apply.

What happens if a UAE employer pays salaries late?

MoHRE sends alerts from the second day after the due date and suspends new work permits on the fifth day. Repeat violators face a fine and reclassification from the 11th day, and larger or repeat cases can lead to labour disputes, attachment, a travel ban on the person in charge and referral to the Public Prosecution from the 16th and 21st days.

Veridian Partners — Knowledge BankWritten by the founding team of Veridian Partners as part of our technical publication programme. Questions about this guide? Contact us.

This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.

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