Under Ministerial Resolution No. 0340 of 2026, effective 1 June 2026, private sector employers must pay wages through the Wage Protection System or a MOHRE-approved system by the first day of each month for the previous month, with the old 15-day buffer reported as removed. A company is treated as compliant if it pays at least 85% of total wages due by the deadline. Confirm the text with MOHRE.
What changed
MOHRE issued Ministerial Resolution No. 0340 of 2026 on 12 May 2026, effective 1 June 2026. Advisory summaries report that it replaces Ministerial Resolution No. 598 of 2022 and brings wage payment forward: salaries are due no later than the first day of the Gregorian month after the month worked, through the Wage Protection System or an approved alternative. Under the earlier framework, employers had a period of about 15 days after the due date before a delay was flagged. Several sources report that this buffer no longer applies. Because a few websites still describe the old rule, read the resolution on the MOHRE site.
Who it applies to
It applies to private sector employers registered with MOHRE. Summaries report exceptions for workers in an active dispute, workers reported absent, workers on approved unpaid leave and short-term permits of under three months. Free zone companies registered with MOHRE are generally in the system; check your own case. See UAE labour law: employer obligations.
The 85% compliance threshold
A company is considered compliant if it pays at least 85% of the total wages due by the deadline, which allows for legal deductions and withheld amounts. Do not treat the 85% as permission to leave 15% unpaid. Payment of the remainder remains a legal duty, and the individual employee can complain.
Reported escalation for late payment
| Delay | Reported measure |
|---|---|
| About 5 days | Violation notice; possible suspension of new work permits |
| About 11 days | Administrative fines for repeated violations within six months |
| About 16 days | Labour disputes registered; further permit suspensions |
| About 21 days | Enforcement actions, which may include travel bans and asset seizures |
This timetable is taken from an advisory firm summary and is not confirmed by an official page in the sources we checked. Older guidance cites a fine of AED 1,000 per worker, capped at AED 20,000, under an earlier Cabinet resolution, and we could not confirm whether that still applies alongside the new rules. Fines are reported to be assessed per employee, and unpaid fines can block MOHRE transactions such as renewals.
Payroll controls that help
- Set the payroll cut-off and approval dates at least five working days before the first of the month.
- Fund the bank account in advance, not on the day.
- Run the WPS file for validation before the final upload.
- Reconcile employee bank details every quarter.
- Keep proof of the file upload and bank acknowledgement.
- Have a named back-up for the payroll approver.
Accounting and audit points
Accrue salaries at month end, accrue end-of-service gratuity regularly and reconcile payroll to the general ledger. Auditors check payroll for completeness and cut-off. See end of service gratuity and how to prepare for an annual audit. Payroll cost is part of the deductible expense base; see deductible expenses under UAE corporate tax.
Support
We prepare payroll accounting and the controls around it; see our payroll and WPS services. Salary payments themselves are made by the employer through the approved channels.
Examples of controls in action
A business with 40 employees runs payroll on the 25th of each month with approval by the 22nd. The bank file is uploaded on the 26th and the bank confirmation is saved. If a new hire's bank details are incomplete, the payroll team sets a hold, not a skipped payment, and logs the reason. A weekly check on the dashboard shows any rejected payments, which are fixed the same day. The result is that every payment reaches employees before the first of the month.
Problems that cause late payment
- Employees without valid bank details or card accounts.
- Employer bank account not funded in time.
- A work permit that has expired and blocks the payment.
- Manual overrides outside the system.
- Approver on leave with no back-up.
Records to retain
Keep payroll registers, WPS files, bank confirmations, timesheets and employment contracts. Records are the evidence you need if MOHRE or an employee questions a payment. See tax record retention for retention principles, and check labour law for payroll record periods.
Groups and branches
A group with several UAE entities has one payroll duty per employer. Make sure each employee is paid by the entity that holds their work permit, and that intercompany recharges of payroll costs are documented. See payroll and WPS services.
Frequently asked questions
Summaries of Resolution 0340 of 2026 say by the first day of each month for the previous month, effective 1 June 2026.
Newer sources report the buffer was removed. Some older pages still mention it. Check the resolution text.
A company is treated as compliant if it pays at least 85% of total wages due by the deadline. The rest remains payable.
Reported measures include violation notices, permit suspensions, fines per employee and enforcement action as delay increases.
Summaries mention workers in disputes, absent workers, workers on approved unpaid leave and short-term permits under three months.
The resolution requires payment through WPS or a MOHRE-approved system for covered employers.