Late salaries stop your hiring within five days and reach a travel ban within three weeks. PROXPAT keeps your WPS file clean and your payroll dates aligned with MOHRE.
Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.
The UAE Wage Protection System (WPS) for Employers
The Wage Protection System (WPS) is the electronic system through which private-sector employers pay wages, using banks, financial institutions and exchange houses approved by MOHRE. The Central Bank of the UAE and Al Etihad Payments sit behind it, and MOHRE says it now covers more than 99% of private-sector workers, with monthly transfers above AED 35 billion.
The rules were reissued as Ministerial Resolution No. 340 of 2026, in force from 1 June 2026, which repealed the 2022 resolution. MOHRE describes it as improving procedures and governance rather than adding new obligations, but it sets out the deadlines and consequences in one place, and they escalate quickly.
Please note: this page follows the resolution itself. It is a summary for employers, not legal advice, and the Ministry issues a separate procedural guide for implementation.
The Due Date: The First of Every Month
- The first day of each Gregorian month is the unified due date for the previous month's wages across private-sector establishments.
- Any payment made after that date is treated as a delay in wage payment.
- Establishments registered with the Ministry must pay through WPS, or another system the Ministry adopts.
- Establishments must submit documents and data proving wages were paid, under the Ministry's rules.
There is no separate grace period written into the due date itself. What follows a delay is the escalation ladder below.
The 85% Rule
| Rule | What the resolution says |
|---|---|
| Establishment compliance | An establishment is compliant where, no later than the due date, it transfers no less than 85% of the total wages due to its workers |
| When a worker counts as paid | A worker is not treated as unpaid if they receive no less than 85% of their entitled wage, provided the difference comes from lawful deductions or withholdings |
| Deductions | Those deductions must follow Article 25 of Federal Decree-Law No. 33 of 2021 |
| The worker's rights | None of this prejudices the worker's right to their full wage or to claim any amount still due |
The 85% figure measures compliance, not entitlement. Wages remain payable in full, and a shortfall that is not a lawful deduction is still unpaid wages. See UAE labour law for employers for what may lawfully be deducted.
What Happens If Wages Are Late: The Full Ladder
| When | What the Ministry does | Who it applies to |
|---|---|---|
| From the due date, until payment is proven | Electronic monitoring of the establishment's wage payments | All establishments |
| From the second day after the due date | Notifications and alerts to pay wages | Non-compliant establishments |
| On the fifth day | New work permits are suspended, with notice to the owner and a warning to pay | Non-compliant establishments |
| On the eleventh day | The administrative fine under Cabinet Resolution No. 21 of 2020, and reclassification into the Third Category under Ministerial Resolution No. 209 of 2022 | Non-compliant establishments where the violation is repeated within six months |
| On the sixteenth day | An individual or collective labour dispute is registered automatically, and work permits are suspended | Establishments with 25 or more workers, or commonly owned establishments reaching 25 unpaid workers in construction, transport and storage, security, cleaning, recruitment agencies or domestic worker recruitment |
| On the twenty-first day | An executive instrument to pay wages (under 50 workers) or collective dispute procedures (50 or more), precautionary attachment, a travel ban on the person in charge, and referral to the Public Prosecution | Establishments with more than 50 workers where the violation is repeated within two consecutive months, commonly owned groups reaching 50 unpaid workers in those sectors, or any size where labour market stability is at risk |
Two details decide how far this goes: the repeat windows (six months for the fine and reclassification, two consecutive months for prosecution referral) and the headcount thresholds of 25 and 50 workers, which count across establishments under the same ownership in the listed sectors.
What the Fine Actually Costs
The 2026 resolution does not set an amount. It applies the fines in Cabinet Resolution No. 21 of 2020 on service fees and administrative fines at MOHRE, which has been in force since 5 April 2020.
| Violation | Fine |
|---|---|
| Not paying the wage due to a worker through the WPS, during the period covered by a resolution issued by the Minister | AED 1,000 per worker, up to AED 20,000 |
| Making a worker sign documents simulating receipt of their dues, or entering incorrect data into the WPS to cheat the system | AED 5,000 per worker, up to AED 50,000 |
| Making the worker bear recruitment fees, or deducting from wages without legal grounds | AED 20,000 per worker |
A fine can be contested. Any interested party may file a written, justified grievance with the Ministry within ten working days of being notified, attaching supporting documents, and it is considered within 20 days of submission.
Please note: the Ministry publishes this table in an official English translation and states that, in case of conflict, the Arabic text prevails.
Why the Fifth Day Matters Most
The first hard consequence is not financial. On the fifth day after the due date, MOHRE stops issuing new work permits to the establishment. Any hire in progress stops there: no permit, no entry permit, no visa, no Emirates ID.
On the eleventh day the establishment is also reclassified into the Third Category under Ministerial Resolution No. 209 of 2022, which is the Ministry's classification of the establishment itself rather than a one-off penalty, so it follows the file into later transactions. See work permit and labour card and employment visa services.
Who Is Excluded From WPS
- A worker whose wage claim has gone to the competent court, or has an executive instrument, within the limits of that wage or period.
- A worker with an absconding report filed against them, while the report stands.
- A worker whose liberty is restricted by an order or judgment, for the period work cannot be performed, if the Ministry is notified with documents.
- A worker on approved unpaid leave, for that period, if the Ministry is notified with documents.
- Seafarers working on ships, on the establishment's request and the Ministry's decision.
- Foreign workers of foreign establishments or their UAE branches who are paid outside the UAE, on request and with the workers' approval.
- Workers on mission work permits of no more than three months.
- Fishing boats owned by individual citizens, and public taxis owned by individual citizens.
- Banks and financial institutions, and places of worship.
For domestic staff, MOHRE states that WPS is mandatory for specific domestic worker jobs and optional for the rest of that category.
Delegating Payroll Does Not Move the Responsibility
- An establishment may delegate someone to pay its workers' wages.
- The Ministry must receive the delegate's data and a copy of the delegation or contract, including its scope and the resulting obligations.
- The establishment stays responsible for paying wages on their due dates, and every procedure above applies to it if the delegate fails.
So a payroll provider or PRO firm can run the transfers, but the fine, the permit suspension and the travel ban still attach to the establishment.
A Practical Monthly Routine
Step 1: Run payroll so funds clear on or before the first of the month, not on it.
Step 2: Reconcile the salary file against the contracts and work permits, because a mismatch shows as underpayment.
Step 3: Keep the transfer confirmations, since the Ministry can ask for proof of payment.
Step 4: If a payment will slip, fix it before day five, when new work permits stop.
Step 5: Track repeat months: a second miss within six months brings the fine and reclassification.
Step 6: Tell the Ministry about exclusions, such as unpaid leave, with the documents, instead of leaving a gap in the file.
How WPS Touches the Rest of Your File
| Area | What a WPS problem does |
|---|---|
| Hiring | New work permits stop on day five, so recruitment and visa processing halt |
| Company category | Third Category reclassification raises MOHRE fees on later transactions |
| Banking | Salary transfers run through the bank account, so account problems become payroll problems. See corporate bank account |
| Disputes | From day sixteen, labour disputes are opened automatically rather than waiting for a worker to complain |
| Management | From day twenty-one, a travel ban can apply to the person in charge of the establishment |
How PROXPAT Helps
WPS registration and file checks
Monthly payroll calendar against the due date
Salary file and contract reconciliation
Proof-of-payment record keeping
Exclusion notifications with documents
Work permit suspension recovery
Coordination with your bank or exchange house
Labour dispute and inspection support
Frequently Asked Questions
Keep payroll and permits moving together.
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Keep Your WPS File Clean
PROXPAT aligns your payroll calendar with the first-of-month due date, reconciles the salary file against contracts and permits, and steps in if a suspension has already started.