Wage Protection System Update 2026: Ministerial Resolution 340 and What UAE Businesses Must Know
Wage Protection System update 2026 arrived with Ministerial Resolution No. (340) of 2026, issued by the UAE Ministry of Human Resources and Emiratisation and effective from 1 June 2026. The resolution repeals Ministerial Resolution No. (598) of 2022 and sets new rules on the wage payment date, the compliance threshold, and the measures that follow late payment. This article explains the key points and what business owners should do.
What Is New in the Wage Protection System Update?
1. A Unified Due Date: The First Day of Every Month
The resolution sets the first day of each Gregorian month as the unified due date for paying private-sector workers’ wages for the previous month. Any payment made after that date counts as late. Payment must go through the Ministry’s approved Wage Protection System, or any other system the Ministry approves, and establishments must provide the documents and data proving payment under the Ministry’s rules.
2. Compliance Threshold: Transfer at Least 85%
An establishment is considered compliant if it transfers at least 85% of the total wages due to its workers by the due date. A worker is not considered unpaid if they receive at least 85% of their due wage and the difference results from fixed, lawful deductions under Article (25) of Federal Decree-Law No. (33) of 2021. The worker’s right to claim any remaining amounts is preserved.
Measures for Late Payment (Timeline)
| Timing from due date | Measure |
|---|---|
| From day 1 | Electronic monitoring of all establishments until payment is confirmed |
| From day 2 | Notices and alerts to non-compliant establishments |
| Day 5 | Suspension of new work permits, with notice and a warning to the owner to pay |
| Day 11 | For repeat violations within six months: administrative fine and reclassification to Category Three |
| Day 16 | For establishments with 25+ workers: automatic registration of an individual or collective labour dispute for affected workers, and suspension of work permits |
| Day 21 | Enforcement order for wages (under 50 workers) or collective labour dispute (50+ workers), plus precautionary attachment, a travel ban on the responsible person, and referral to the Public Prosecution for repeat cases |
The 25-worker threshold (and the 50-worker threshold on day 21) also applies to establishments under the same owner, based on their combined unpaid workers, where the activity is in construction, transport and storage, security services, cleaning, recruitment agencies, or domestic worker recruitment offices.
Cases Excluded from the Calculation
The following are excluded from the Wage Protection System calculation:
- A worker whose wage-related labour claim has been referred to the competent court or has an enforceable order, within the wage or period of the claim.
- A worker with an absconding report filed against them, for the duration of the report.
- A worker whose freedom is restricted by an order or ruling from a competent authority.
- A worker on approved unpaid leave, during that leave.
- Seafarers working on ships.
- Foreign workers of foreign establishments or their branches in the UAE who are paid abroad, at the establishment’s request and with the worker’s consent.
- Workers holding mission work permits of up to three months.
- Fishing boats and public taxis owned by individual citizens.
- Banks and places of worship.
Some of these cases require notifying the Ministry and submitting documents under approved rules.
Delegating Wage Payment
An establishment may delegate someone to pay its workers’ wages, provided it gives the Ministry the delegate’s details and a copy of the delegation or contract, including its scope and the obligations involved. The establishment remains responsible for paying on time, and all measures apply to it if the delegate fails to pay.
How to Prepare Your Establishment
- Schedule salary transfers well before the first of the month to avoid any delay.
- Make sure at least 85% of due wages are transferred, and document any lawful deductions.
- Notify the Ministry and submit documents for excluded cases.
- Review the delegate’s details if you delegate wage payment.
- Monitor your establishment’s status, work permits, and category regularly.
Related guides
- تحديث نظام حماية الأجور 2026: القرار الوزاري 340 وأهم ما يجب أن تعرفه المنشآت
- Avoid Company Fines in the UAE 2026: The Complete Compliance Guide
- Resignation During Probation Period Under UAE Labour Law: Notice Period and Recruitment Costs
Frequently Asked Questions
When does the Wage Protection System update take effect?
From 1 June 2026. The resolution was issued on 12 May 2026.
What is the wage due date?
The first day of each Gregorian month, for the previous month’s wages.
Is it enough to transfer part of the wages?
An establishment is compliant if it transfers at least 85% of total due wages, without affecting the worker’s right to the rest of their wage.
When do new work permits stop being issued?
On day 5 from the due date, for a non-compliant establishment.
Does the new resolution replace the previous one?
Yes, it repeals Ministerial Resolution No. (598) of 2022.
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