The UAE WPS deadline: wages by the 1st, and what happens from day 2
Since 1 June 2026, wages for the previous month must reach workers through WPS by the 1st of each month. Here is the calendar, the 85% rule, and how Xrero gets the SIF file to the bank in time.
Payroll and WPS in Xrero: AED 99 per user per month, set up for you from AED 2,999. 15-Day Trial Included.
Day 1
wages for the previous month, through WPS
85%
of total wages by the due date
Day 5
work permits suspended
Day 21
legal action
What changed on 1 June 2026
Resolution 340 of 2026 replaced Resolution 598 of 2022, and the grace period went with it.
Today, in most UAE companies
- Under the old rules, a wage was flagged late only after a 15-day grace period
- Due dates followed each employment contract, so 'late' meant different dates for different staff
- The first consequence arrived after weeks, not days
- Payroll files were often built on the due date itself
With Xrero
- One deadline for everyone: the 1st of each Gregorian month for the previous month's wages
- Late from day 2 - there is no grace period
- Escalation starts with electronic warnings and reaches work-permit suspension by day 5
- The payroll has to be approved, checked and at the bank before the month ends
The rules that matter, in plain words
Taken from the Resolution as summarised by the professional advisers who track it; the Ministry's text is the authority.
The deadline is the 1st
Wages for the previous month must be paid through WPS by the first day of each Gregorian month. A payment on day 2 or later is a delayed payment.
The 85% threshold
An establishment is compliant when at least 85% of total wages have been transferred by the due date. Lawful deductions are recognised in that calculation.
Escalation by the day
Electronic warnings from day 2, work-permit suspension from day 5, fines and a downgraded classification from day 11, a registered labour dispute from day 16, legal action from day 21.
Who is excluded from the count
Workers with wage-related court cases, absconding reports, restricted freedom or on unpaid leave are excluded from the WPS calculation when documented and notified to the Ministry.
The bank's cut-off is earlier than the deadline
A SIF file uploaded on the 1st does not reach accounts on the 1st. Banks and exchange houses process files on their own schedule, so the file has to be at the bank before the month ends.
The SIF file must be right the first time
A rejected file - one wrong IBAN digit, a mismatched employee ID, a total that does not add up - costs the days you no longer have.
Deductions must be lawful and documented
Only lawful deductions count against the 85%; unexplained shortfalls read as unpaid wages.
Keep the evidence
Approved payroll runs, the SIF file sent, the bank's acknowledgement and the dates - the record you produce when the Ministry asks.
A month in Xrero, timed to the deadline
The system is built so the file is at the bank days before the 1st, not on it.
Attendance closes itself
Punches from supported devices arrive on their own, so the month's attendance is complete without chasing sheets.
Payroll drafts from contracts
Salaries, allowances, deductions and end-of-service accrue from the contracts and the attendance - reviewed on one screen, approved once.
The SIF file comes from the approved run
No re-typing into a bank template: the WPS SIF file is generated from the approved payroll in the layout UAE banks accept.
Every row checked before upload
IBANs, employee IDs, amounts and totals are validated row by row, so the bank does not reject the file on the last day.
Payslips in Arabic and English
Every employee gets a bilingual payslip the moment the run is approved; the numbers match the file to the fils.
The record is kept
Runs, files, acknowledgements and dates stay attached to the month, searchable when you need to show them.
How the setup goes
We do the implementation ourselves, from the first call to the first month-end.
Close the month early
Attendance and changes are in by the last working days; the run drafts itself and you review one screen.
Approve once, generate the file
One approval produces the payslips and the WPS SIF file, already validated.
At the bank before the 1st
Upload with time for the bank's own processing, keep the acknowledgement, and the month is done.
Pricing, in the open
The same numbers are on our pricing page. No annual maintenance fee, no per-module surprises.
Monthly
AED 99
per user, per month - every module included
- Accounting, invoicing, VAT and corporate tax
- Inventory, purchasing, sales and CRM
- POS, HR and payroll with WPS
- Arabic and English, works on any phone, support from Dubai
One-time setup
AED 2,999
one-time, depending on the size of the business
- Data migration: customers, products, balances, staff
- Configuration for your VAT, banks and documents
- Training on your own numbers
- Live within two weeks, or the setup fee back
15-Day Trial Included. Prices in AED, excluding VAT. Full price list: xrero.com/pricing.
Built for UAE businesses
Xrero is built for trading companies, contractors, restaurants, shops, clinics and service firms across Dubai, Abu Dhabi, Sharjah and the northern emirates.
Questions we get asked
Straight answers, the same ones we give on the phone.
When exactly are wages due under the new WPS rules?
By the first day of each Gregorian month for the previous month's wages, paid through the Wage Protection System. From day 2 the payment is considered delayed.
What does the 85% rule mean?
An establishment counts as compliant when at least 85% of its total wages for the month have been transferred by the due date. Lawful deductions are recognised in the calculation.
What happens if we pay on the 3rd?
The payment is late. Electronic warnings apply from day 2; from day 5 work permits are suspended; from day 11 fines and a downgraded classification; from day 16 a labour dispute is registered; from day 21 legal action.
Is there still a 15-day grace period?
No. The 15-day grace period belonged to Resolution 598 of 2022, which Resolution 340 of 2026 replaced on 1 June 2026.
Which employees are excluded from the calculation?
Workers with wage-related court cases, absconding reports, restricted freedom or on unpaid leave are excluded when the case is documented and notified to the Ministry.
Does Xrero submit the file to the bank?
Xrero generates and validates the WPS SIF file from the approved payroll; you upload it to your bank or exchange house, as the system requires, and keep the acknowledgement in Xrero.
Can Xrero warn us before we are late?
Yes. The payroll calendar and the run's status show what is drafted, approved and filed, so the month is visibly done before the 1st.
What does payroll in Xrero cost?
AED 99 per user per month, and a one-time setup from AED 2,999 depending on the size of the company, including migration of staff and contracts. 15-Day Trial Included.
See your own payroll reach the SIF file in one run
Twenty minutes on WhatsApp or a call. Bring last month's payroll sheet and we show you the file it becomes, checked.
Talk to us on WhatsAppPage updated 8 September 2026.