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Late salary penalties in the UAE: One late payroll, day by day from the first.

What happens when a UAE employer pays salaries late, day by day under Ministerial Resolution 340 of 2026: alerts, permit stops, fines, disputes and travel bans.

A disbursed September payroll run in DenwaysHR: the lifecycle from draft to disbursed, and 302 employees with gross AED 1,335,735, deductions AED 30,030 and net pay AED 1,305,704

The short answer

UAE wages are due on the first of the following month, and the UAE Government portal says employers must transfer at least 85 per cent of the total wages due on time. Under Ministerial Resolution No. 340 of 2026, alerts start on the second day after, new work permits stop on the fifth, repeat cases are fined on the eleventh, and from the sixteenth larger employers face automatic labour disputes.

The first of the month is now the due date, and what follows runs on a published timetable. This puts dates against that timetable, shows who it reaches, and sets out what the ministry can do when an employee complains.

When does a UAE salary count as late?

Under Ministerial Resolution No. 340 of 2026, wages for a month are due on the first day of the next Gregorian month, paid through the Wage Protection System. The u.ae page says employers must transfer at least 85 per cent of the total wages due on time, where lawful deductions apply.

The 85 per cent is a test on the total. Some payroll commentary, Darwinbox's for one, reads it per employee as well, with each person receiving at least 85 per cent of their own wage. The ministry's site did not load when we checked, so we could not settle this from the Resolution's own text. Check each employee's transfer as well as the total.

October 2026 payrollAED
Total wages due400,000
85 per cent of the total340,000
Transferred by 1 November350,000
At or above 85 per cent of the total?Yes
Still owed to employees50,000

Reaching 85 per cent of the total does not settle what those employees are owed. Article 22 requires wages to be paid on their due dates, so anyone in that AED 50,000 can still complain to MOHRE.

The u.ae summary does not move the due date for a weekend. 1 November 2026 is a Sunday, so ask your bank about its cut-off well before.

What happens on each day after the due date?

Dates below are for October 2026 wages, counting 2 November as the first day after the due date. Each step runs until payment is proven or the next step is taken.

Day after the due dateDateActionWho it reaches
Due date onward1 NovElectronic monitoringAll establishments
2nd3 NovNotifications and alerts to payNon-compliant establishments
5th6 NovNew work permits suspended, with a warning to the ownerNon-compliant establishments
11th12 NovAdministrative fine, and reclassification into the Third CategoryA repeat violation within six months
16th17 NovIndividual or collective dispute registered automatically; work permits suspended25 or more workers in any sector, or 25 unpaid across one owner's establishments in the listed sectors
21st22 NovEnforcement order for the wages under 50 workers, or collective dispute at 50 or more; precautionary attachment; travel ban on the person in charge; Public Prosecution notified on a repeat within two consecutive months50 or more workers, referred to the Public Prosecution on a repeat; 50 unpaid across one owner's establishments in the listed sectors; or a risk to market stability, at any size
Ministerial Resolution No. 340 of 2026, as summarised on the UAE Government portal. Listed sectors: construction, transport and storage, security, cleaning, recruitment agencies and domestic worker recruitment offices.

The portal lists day 21 as one step with those three target groups. Its wording on 50 workers varies: the action column says "exceeds fifty" for the Public Prosecution notice, the target column says "fifty or more", and the enforcement order is written for establishments under fifty. If your headcount is close to 50, ask MOHRE how it applies.

How much is the fine, and what is the Third Category?

The resolution points to Cabinet Resolution No. 21 of 2020 for the administrative fine, and the u.ae page does not give the amount. We could not open that resolution, so we leave the figure out here. Ask MOHRE if you need it. The fine applies only to a repeat violation within six months.

The u.ae table names Ministerial Resolution No. 209 of 2022 for the move into the Third Category, which we could not open. The categories themselves are in Cabinet Resolution No. 18 of 2022, under which establishments are sorted into three. An establishment that the ministry has found in breach of the labour law can be placed in the third. The resolution also lets MOHRE move an establishment between categories once it meets the criteria.

The law also has general penalties. Article 63 sets a fine of AED 5,000 to AED 1,000,000 for breaching any provision without a penalty of its own, and Article 62 multiplies a fine by the number of workers affected, up to AED 10 million. We found no official text applying these to one late payroll, so don't read them as a tariff.

The permit stop usually bites first

The stop on new work permits arrives on day five, before any fine, and it reaches a first-time late payer. A business with hires waiting feels that long before a repeat-violation fine could apply.

Who is outside the WPS check?

  • Workers whose wage complaint has gone to the courts
  • Workers with a 'work abandonment' report against them
  • Workers held by order of an authority, during that time, with MOHRE notified and without affecting what they are owed
  • Workers on unpaid leave, if the supporting documents are submitted to MOHRE
  • Seafarers on vessels, on the establishment's request and under the ministry's decision
  • Foreign workers of foreign establishments or branches paid outside the UAE, on request and with their approval
  • Mission work permits of three months or less
  • As employers: UAE nationals owning fishing boats or public taxis, banks and financial institutions, and houses of worship

Being outside the check does not remove the wage itself. Keep the documents, because a missing form can leave an excluded worker looking unpaid.

What can an employee do about an unpaid salary?

  • Register a salary complaint with MOHRE. The labour claims and advice line is 80084
  • On a claim of up to AED 50,000, MOHRE decides if it isn't settled, and the decision can be enforced. Either side has 15 working days to take it to the Court of First Instance (Article 54)
  • On a larger claim, MOHRE refers it to court, and an employee's claim of up to AED 100,000 is free of court fees (Article 55)
  • Where the dispute has stopped the wages, MOHRE can make the employer pay for up to two months while it runs (Article 54)
  • Leave without notice, keeping end-of-service rights, after telling MOHRE 14 working days ahead, if the employer doesn't fix the breach (Article 45)
  • Bring a case up to two years after the employment ends (Article 54). The u.ae disputes page still says one year, citing Article 10; in the current law that one-year limit sits in the non-compete clause, and Article 54 has the two years

Money owed to workers also ranks high if the business fails: Article 65 gives it priority over the employer's funds, after amounts due to the public treasury and court-ordered alimony.

Does the timetable cover a late final settlement?

The u.ae table describes monthly wages through WPS and does not set a separate timetable for leavers. A final settlement has its own deadline, 14 days from the end of the contract (Article 53), and a late one usually comes back as an Article 54 complaint.

The two financial free zones write daily penalties into their laws. Under DIFC's Article 19, a day's wage for each day late, where the unpaid sum is over a week's wage. Under ADGM's section 14, the same daily penalty after 21 days, capped at six months' daily wage and open to a court reducing it. See the DIFC and ADGM guide.

How do you keep a payroll off this timetable?

  • Move the payroll close so the bank has the file several working days before the first
  • Check the 85 per cent figure on the bank's confirmation, for each employee's transfer as well as the total, and treat what is left as still owed
  • Handle returned and failed transfers the same day, since they can pull the total below the line
  • File the documents for unpaid leave and other exclusions when they arise
  • Keep the salary file tied to the approved run, so a rejection can be fixed and resent quickly
  • If you know a payment will be late, keep the record of why and when it will reach each employee, and speak to MOHRE early

DenwaysHR builds the WPS salary file from the approved payroll run, one file per establishment. It prepares the file for your bank's portal; the bank moves the money, so the first-of-the-month deadline stays with you.

See UAE payroll with the WPS file

Questions

Late salary questions.

Is the 15-day WPS grace period still in force?

Ministerial Resolution No. 340 of 2026 makes wages due on the first day of the following month, and measures start from the second day after that. Plan to the first.

Does one late payroll bring a fine?

On the u.ae table, the fine on the 11th day is for a repeat violation within six months. A first late payroll still brings alerts from the second day and a stop on new work permits on the fifth.

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