The UAE Ministry of Human Resources and Emiratisation has issued Ministerial Resolution No. 340 of 2026, introducing significant amendments to the Wage Protection System that came into effect on 1 June 2026. The changes affect obligations for private sector employers across all emirates and carry new enforcement provisions that expand the ministry’s ability to impose penalties for late or irregular salary payments.
The Wage Protection System — known as WPS — has been mandatory for all private sector employers in the UAE since its phased introduction from 2009. It requires salaries to be paid through approved financial institutions and recorded electronically, enabling the Ministry to monitor compliance in near-real time. The 2026 amendments update several procedural and compliance requirements that had not been revised since 2020.
Key Changes Under Resolution 340
The updated resolution introduces the following material changes to the existing WPS framework:
- Extended salary payment window scrutiny: Employers must ensure wages are processed through an approved WPS agent within the first 10 calendar days of each month. The existing 15-day rule has been tightened for companies with more than 50 employees.
- Digital compliance confirmation: Employers are now required to retain electronic salary transaction records for a minimum of five years and make them available to the Ministry upon request within 72 hours of a formal inquiry.
- New grading penalties: The resolution introduces a tiered penalty structure. First-time violations result in a warning and a 30-day compliance window; repeated violations trigger salary escalation blocks through the Ministry’s establishment file system, preventing the employer from sponsoring new visas until arrears are cleared.
- Expanded employee complaint portal: Workers can now initiate a WPS complaint directly through the MOHRE Smart App without visiting a service centre, with response time commitments of five working days for initial acknowledgement.
- Domestic worker inclusion: All household employers registered with Tadbeer centres are now subject to WPS reporting requirements for the first time, extending protection to an estimated 150,000 domestic workers who previously had limited recourse.
Enforcement Context
The resolution arrives as the Ministry has been steadily strengthening labour compliance mechanisms since the publication of the Federal Decree-Law No. 33 of 2021 on the regulation of labour relations. That legislation overhauled the UAE’s employment contracts framework, introduced multiple new work permit categories and strengthened protections against arbitrary termination.
Resolution 340 is best understood as a technical complement to the 2021 decree, addressing the operational and digital infrastructure through which the Ministry monitors salary payment compliance in practice. Employers who have maintained clean WPS records will face minimal adjustment. Those operating in sectors with higher turnover — hospitality, construction, retail and domestic services — should audit their payroll processing workflows before the end of June to ensure all technical requirements are met.
Practical Guidance for Businesses
HR directors and payroll managers should take the following steps in response to the resolution:
- Review payroll processing calendars to confirm wages are cleared through the WPS-approved institution by day 10 of each month for companies with 50 or more staff.
- Confirm that payroll software exports a digital record compliant with the Ministry’s required format and that records are backed up with five-year retention.
- Audit domestic worker employment arrangements registered under Tadbeer to understand the new WPS reporting obligations applicable from June 1.
- Brief HR staff on the updated penalty tiers to ensure that any accidental delays are reported and corrected before escalating to a visa block under the establishment file system.
The Ministry’s official guidance on Resolution 340 is available through the MOHRE website and the Ministry’s official smart services portal. Employers seeking clarification on specific provisions can contact the Ministry’s business support line, which has been designated as the primary point of contact for corporate compliance queries related to the amendment.
For multinational companies with UAE operations managed regionally, it is worth noting that WPS compliance is monitored at the establishment level — meaning each UAE-registered entity must maintain its own clean record independently, regardless of the parent company’s compliance status elsewhere in the GCC.
Also Read: How to Negotiate Your Salary in the UAE: A Practical Guide | UAE Visa Guide 2026: Every Visa Type Explained
