UAE private sector employers rushed to process salaries through the Wage Protection System (WPS) on June 1, leading to a more than 151% increase in payroll transactions as new salary payment regulations came into effect.
Al Ansari Exchange said the number of companies using its WPS platform surged significantly on the first day of 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 every month.
The sharp rise in payroll activity reflects efforts by businesses across the UAE to comply with the updated wage payment requirements. The Wage Protection System, supervised by MoHRE and the UAE Central Bank, is designed to facilitate salary payments while improving oversight and compliance across the labour market.
According to Al Ansari Exchange, employer activity on its WPS platform more than doubled compared to normal levels as companies adjusted payroll schedules to meet the new deadline.
“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,” said Ali Al Najjar, Chief Executive Officer of Al Ansari Exchange.
“As employers adapt to the updated requirements, access to efficient and reliable payroll solutions becomes increasingly important,” he added.
The revised regulations are part of broader UAE efforts to strengthen wage payment compliance and establish a more consistent salary disbursement framework across the private sector. Authorities have increasingly focused on enhancing worker protections and ensuring timely payment of wages through digital monitoring systems.
Industry observers believe the latest changes will encourage wider adoption of payroll technology and compliance-focused financial services as employers seek to meet regulatory obligations efficiently.
The increase in WPS transactions on the first day of implementation highlights the immediate response from businesses and underscores the significance of the new salary payment deadline for employers operating across the UAE.
