Business
UAE — Business: Payroll (WPS)
All MOHRE-registered establishments must pay employee wages through the Wage Protection System (WPS). Under Ministerial Resolution No. 340 of 2026, wages for the previous month are due on the first day of each Gregorian month, and employers must transfer at least 85% of total wages due on time (where lawful deductions apply). Non-compliance escalates: alerts from day 2, suspension of new work permits from day 5, an administrative fine on day 11, an automatic labour dispute and permit suspension for targeted establishments from day 16, and enforcement, precautionary attachment and a travel ban on the person in charge from day 21, with Public Prosecution referral in some repeat cases. Banks and financial institutions, and workers on mission permits of up to three months, are among the exclusions.
Key facts
- Wages for the previous month are due on the first day of each Gregorian month.
- Employers must transfer at least 85% of total wages due, on time, where lawful deductions apply.
- Day 2: alerts begin. Day 5: new work permits suspended. Day 11: administrative fine (repeat violations within six months move the employer to the Third Category).
- Day 16: labour dispute registered automatically for affected workers and permits suspended for targeted establishments. Day 21: executive instrument or collective dispute, precautionary attachment, travel ban on the person in charge, and Public Prosecution referral in some repeat cases.
- Exclusions include workers on mission permits of up to three months and workers on unpaid leave whose documents are submitted to MOHRE; banks and financial institutions are excluded employers.
Timelines
- Wage payment due date: 1st of each Gregorian month
- New work permits suspended: 5th day after due date
- Automatic labour dispute / permit suspension: 16th day after due date
- Enforcement, travel ban, prosecution referral: 21st day after due date
Required documents
- WPS wage payment records
Common mistakes
- Paying wages outside the WPS or late, assuming the escalation only starts after two weeks — alerts start on day 2 and new work permits are suspended from day 5.
- Delegating payroll to a third party without realizing the employer remains ultimately liable for compliance.