Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System introduced stricter timelines, automated penalties and updated compliance thresholds affecting payroll operations across the UAE. It has been in force since 1 June 2026.
The change that matters most operationally is that enforcement is automated. Consequences follow the calendar rather than an inspection, and the first of them arrives on day five.
A unified monthly due date
The first day of each calendar month is the unified due date for paying workers' wages for the preceding month. Any payment made after this date is legally deemed a delay.
The 85% compliance threshold
An establishment is deemed compliant only if it transfers no less than 85% of the total wages due to its workers by the due date. This threshold accommodates legally permissible deductions or withholdings under Article (25) of Federal Decree-Law No. (33) of 2021.
The distinction is worth stating plainly. The 85% rule stops the government from blocking your company's work permits. It does not change what you owe: you still legally owe your employees 100% of their salary unless you have a lawful reason to deduct it.
The timeline of consequences
The Ministry enforces an automated escalation matrix for non-compliance, with operational restrictions taking effect as early as day five.
Day 1, from the due date
Continuous electronic monitoring of the establishment's compliance.
Day 2
Automated notifications and warning alerts sent to the establishment.
Day 5
Immediate suspension of new work permit issuances, and application of prescribed administrative fines.
Day 11
Reclassification of the establishment into the Third Category, involving significantly higher risk and fees, in the event of a repeated violation within six months.
Day 16
Work permit suspensions expand, and an individual or collective labour dispute is automatically registered. This targets establishments with 25 or more workers, or employers with a combined pool of 25 or more unpaid workers across construction, security, transport, cleaning and recruitment.
Day 21
Escalation to legal and judicial measures: referral to the Public Prosecution for repeated violations where an establishment or combined ownership has 50 or more affected workers, precautionary attachment procedures against the establishment, and travel bans on the person in charge.
Categories outside the tracking
Article (4) explicitly excludes certain categories from WPS tracking: workers with court-referred wage claims, workers with active absconding reports, workers on approved unpaid leave, and foreign employees holding mission work permits under three months.
What this means for your accounting calendar
Because work permit blockages are triggered automatically on day five following a missed deadline, establishments need internal accounting timelines that clear all WPS transfers by the first of every month, not merely within the first week.
If your HR and finance departments have not already aligned to this, that is the change to make.
This article summarises published regulation as at 25 August 2026 and is general information, not advice on your circumstances. Requirements change. Speak to us before acting on it.