UAE private sector employers rushed to meet new salary payment requirements on June 1, driving a more than 151 percent increase in companies processing wages through the Wage Protection System, according to Al Ansari Exchange.
The surge coincided with the implementation of Ministerial Resolution No. 340 of 2026, which requires all private sector establishments registered with the Ministry of Human Resources and Emiratisation to pay employee wages through the WPS by the first day of each month.
The Wage Protection System, overseen by MoHRE and the UAE Central Bank, is designed to support salary payments and improve compliance monitoring across the labour market.
What Changed
Under the new rules, private sector employers must ensure salaries are processed through the WPS by the 1st of each month — a tighter timeline than previous requirements. The change is part of broader UAE efforts to strengthen wage payment compliance and standardize salary disbursement timelines across the private sector.
Ali Al Najjar, chief executive officer of Al Ansari Exchange, said the resolution “represents an important step in advancing the UAE’s labour market ecosystem and reinforcing the principles of transparency, accountability and employee protection.”
Impact on Businesses
The 151 percent jump in payroll processing volumes signals significant operational adjustments for companies that previously operated on different pay cycles. Businesses will need to align payroll systems, banking arrangements, and cash flow planning to meet the new monthly deadline.
The requirement applies to all private sector establishments registered with MoHRE, covering a substantial portion of the UAE’s workforce. For more on doing business in the UAE, see our guide to Dubai’s regulatory landscape.
Photo by Armin Forster on Unsplash
