UAE WPS (Wages Protection System) Updates 2026
UAE WPS New Updates 2026: No more 15 days grace period.
The new reinforcement of the UAE labour law targets salary transfer delays, fake employment practices, work permits violations. Employers and employees who fail to comply or do not comply with the UAE labour laws, will face heavy penalties, Company suspension, and other legal actions. This may lead also to court cases and travel-ban restrictions.
As a result of The new decision, that is issued on May 12,2026 by the Minister of Human Resources and Emiratisation (Mohre), is designed to encourage the compliance and ensures timely wage payments across private-establishments. It also helps to enhance the accuracy in the WPS payments and strengthen protections of employees by making a clear and specific deadline for Private sector employers in Dubai and UAE.
Starting from 1st of June 2026, All private sector companies which are registered in MOHRE ( Ministry of Human Resources and Emiratization) should transfer salaries through and approved WPS system. the Ministerial Resolution No. (0340) of 2026 outlines the enforcement of the UAE federal labour relations law and demonstrates the UAE’s continued efforts and vision to enhance and strengthen the labour market protection and regulate the relationship between the employers and their employees.
This means that employers should submit and transfer salaries through an approved WPS system such as: Approved exchange that offers WPS system services or through any UAE bank that provides the wages protection system. They have also to maintain proper records and data. Also, this reolutions stresses that employees should receive their salaries on time without any delays.
This ministerial decision came with new procedures to communicate and address companies and all kind of private establishments that fail to comply or abide to the Wage Protection System that is known as: WPS. Hence, this action that was taken depends on several factors and criteria. Unpaid Salaries, salary delays, percentage of paid and unpaid salary.
Businesses in the UAE should ensure proper payroll management and timely salary processing through professional
outsourced accounting & bookkeeping services in Dubai to avoid WPS compliance issues and penalties
In addition to that, this resolution and decision emphasized the role of the enhanced systems that is implemented in MOHRE to monitor and inspect the WPS payments of non-compliant companies in UAE. So, entrepreneurs, investors, and business owners in Dubai and UAE are advised to submit the WPS on time to avoid any consequences and penalties.
What is the WPS Payment Compliance threshold?
The UAE labour decision has outlined clear standards regarding the minimum salary payments and threshold, and it monitors the WPS system to identify an detect the delayed salary payments and wages. In case if there is any WPS payment delay, MOHRE system will automatically highlight the violations and impose penalties.
The UAE has established clear compliance standards under the Wage Protection System (WPS) to monitor salary payments and identify delayed wages.
Under the new Resolution No. (0340) of 2026 regarding the Wage Protection System, any private company in Dubai or UAE in be classified as non- compliant if it pays less than 85 per cent of the total wages due to its employees by the outlined deadline.
If the company pays at least 85% of the salaries will still remain compliant according to the above-mentioned decision.
Meanwhile, this decision has clearly communicated the legal actions that will be taken against any company that fails to comply with UAE labor law and WPS system that protects both employees and employers.
What are the Action that would be taken by MOHRE againt Non-Compliant Employers?.
The resolutions has discussed and outlined serious actions that would be taken by MOHRE in case of non-compliance by private sector employees. While it emphasized on different actions, including:
- Stop New Work Permit – WPS: Non-Compliant companies will have WPS system block and cannot issue new work permits. This means that the company will not be able to hire new companies.
- Company Classification: Failure to abide to WPS system the company category might change from Category 2 to Category 3 where the labour card fees will increase to 3450 AED instead of 1208 AED.
- Travel Ban Execution: This is one of the new procedures and actions that would be taken against any person that is responsible for the company. If the company has less than 50 employees and exceeded the deadline of the wps payment, the company may face legal issues and company seizure or travel ban issued against the owners or the responsible person of the company. However, In cases of repeated violations over two consecutive months for companies which have more than 50 employees, the company may be referred to public prosection for legal action.
Wage Protection Exemption. Who is exempted from WPS?
The new issued resolution of May 2026 has also outlined exempitons for specific categories. Amongst them:
- Any employee who have active WPS dispute.
- Absconded employees: Any employee who has been reported as absconded.
- Employees who are not able to perform their duties due to court case or legal detention.
- Employees who work outside of the WPS scope including Seafarers ( Depending on Ministry Approval), Employees who are working outside UAE or abroad such as those who are working remotely as well as short-term employees who has 3 months contracts.
- Some categories and activities such as fishing boats and public taxis owned by individuals, as well as banks, financial institutions, and places of worship.
These exemptions are tailored to address unique employment circumstances by ensuring the wage protection system stays effective, reliable, and transparent.
To round off, any company, establishment, investor, or business owner has to accomply to the UAE labour laws and abide to the new Resolution No. (0340) of 2026 that regulates the labour system and strengthens the relationship between employee and employer. Every company in Dubai and UAE private sector has to comply to this decision.