Published: 2026-06-10
Paying staff in the UAE just got a firmer deadline. Under Ministerial Resolution No. 340 of 2026, issued jointly by the Ministry of Human Resources and Emiratisation (MoHRE) and the Central Bank, every private-sector employer must now settle salaries by the 1st of each month. The familiar 15-day grace period is gone, and the Wage Protection System (WPS) is the channel that proves you paid on time. For founders building a team in the Emirates, this is a compliance change that touches hiring, cash flow, and your ability to sponsor new work permits.
What Resolution No. 340 actually changes
The core of the rule is timing. Salaries for a given month must reach employees by the 1st of the following month, and at least 85% of your total payroll must pass through the WPS on time. The WPS routes wages from the employer’s bank through the Central Bank’s settlement layer to each worker’s account, giving MoHRE a real-time view of who was paid, how much, and when. Previously, employers had roughly two weeks of leeway after the due date before the system flagged them. That cushion no longer exists, so the practical deadline for every pay run has moved forward.
The penalties for late or partial payment
Non-compliance carries direct consequences. From the 5th day of delay, MoHRE can impose fines and, more importantly for a growing company, suspend the issuance of new work permits to the employer. That suspension is the part founders should watch: if you are mid-hire, an unresolved WPS flag can freeze your ability to bring in the next employee. The message from the regulators is that on-time, fully documented payroll is now a condition of continued hiring, not just a labour formality.
Why the 85% threshold matters
The 85% figure sets a clear, measurable bar. It means the large majority of your wage bill has to move through the official channel on schedule; you cannot keep most of payroll off-system and settle it informally. For companies with variable pay, commissions, or a mix of on-site and remote staff, this requires payroll processing to be organised well before month-end rather than squeezed into the first days of the new month.
The market has already reacted
The shift is visible in the numbers. Exchange houses and banks reported a sharp spike in WPS processing as the new deadline took effect. As of 1 June, Al Ansari recorded a 151% increase in WPS transactions and Al Fardan a 136% increase, according to The National. That surge reflects employers pulling their pay runs earlier to stay inside the tighter window, a useful signal that processing capacity gets busy right around the deadline, so leaving your run to the last moment is a real operational risk.
Practical steps for employers
The rule rewards employers who treat payroll as a scheduled, auditable process. A few concrete moves reduce the risk of a flag:
- Move your internal pay-run cut-off earlier, aim to submit WPS files several working days before the 1st, not on it.
- Confirm that at least 85% of total payroll is routed through WPS, and reconcile any off-system payments before month-end.
- Keep your bank and exchange-house channel ready and funded ahead of the deadline, since processing volumes peak in the final days.
- Track the 5-day mark: any delay approaching it should trigger immediate action to avoid a work-permit suspension.
- Align onboarding of new hires with a clean WPS record, so permit applications are not blocked by an open payroll issue.
How Atlant Capital can help
Getting payroll compliance right is part of running a UAE company well, and it connects directly to your ability to keep hiring. Atlant Capital helps founders set up and maintain their corporate structure so that WPS registration, work-permit sponsorship, and monthly compliance work together rather than against each other. Explore our services for company setup and ongoing support, and read our business guides for practical walkthroughs of hiring and compliance in the Emirates.
The takeaway
Resolution No. 340 of 2026 removes the old grace period and makes the 1st of the month a hard payroll deadline, with at least 85% of wages required through the WPS on time. Miss it, and from day five you risk fines and a freeze on new work permits. The employers who stay clear of trouble are the ones who move their pay runs forward, fund their channels early, and treat WPS as a monthly discipline. Plan the deadline into your calendar now, and hiring stays open.
