UAE firms rush to meet new salary deadline as payroll volumes jump 151%

Dubai: Al Ansari Exchange said it recorded a more than 151 per cent increase in the number of companies processing salaries through its Wage Protection System (WPS) platform on June 1, as UAE private sector employers adjusted payroll processes to comply with new salary payment requirements.

The increase 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 (MoHRE) to pay employee wages through the Wage Protection System by the first day of each month.

The Wage Protection System, overseen by MoHRE and the UAE Central Bank, is intended to support salary payments and improve compliance monitoring across the labour market.

According to Al Ansari Exchange, employer activity through its WPS platform more than doubled on the first day the requirements came into effect, reflecting adjustments by businesses to the updated payroll rules.

Ali Al Najjar, chief executive officer of Al Ansari Exchange, said "The implementation of the Ministerial Resolution represents an important step in advancing the UAE's labour market ecosystem and reinforcing the principles of transparency, accountability and employee protection. As employers adapt to the updated requirements, access to efficient and reliable payroll solutions becomes increasingly important."

The revised WPS requirements are part of broader UAE efforts to strengthen wage payment compliance and standardise salary disbursement timelines across the private sector.