# UAE payroll guide 2026: WPS, gratuity, DEWS | Peoplo.ai

URL: https://peoplo.ai/ae/en/payroll-guide/

> UAE payroll rules for employers in 2026: the new WPS salary deadline, end-of-service gratuity, DIFC DEWS, ADGM, GPSSA and Emiratisation, with sources.

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UAE payroll guide

# UAE payroll guide for employers

Since 1 June 2026, UAE salaries are due on the first day of the following month and enforcement starts on day 2. Gratuity on the mainland is 21 days' basic salary a year for five years, then 30, capped at two years' wage. The DIFC uses DEWS instead. Checked 31 October 2026.

## Paying salaries: WPS

Ministerial Resolution No. 340 of 2026 came into force on **1 June 2026** and replaced Resolution 598 of 2022. Salaries for each month are due on **the first day of the following month** , paid through the Wage Protection System or another MOHRE-approved system. An employer counts as compliant when at least **85%** of total wages due are paid on time (it was 80%).

| Days after the due date | What can happen |
| --- | --- |
| Day 2 | Alerts and warnings to the employer |
| Day 5 | New work permits may be suspended |
| Day 11 | Administrative fines; repeat breaches within six months move the company to the third category |
| Day 16 | Labour disputes may be registered automatically, with wider permit suspension where 25 or more workers are affected |
| Day 21 | Referral to public prosecution, asset attachment and travel bans may follow |

Fine amounts are set in the resolution; check MOHRE for the current figures.

Sources · checked 31 October 2026

- [UAE Government: payment of wages and the WPS, Ministerial Resolution No. 340 of 2026](https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/payment-of-wages)
- [EY: start date of the new WPS rules, 1 June 2026](https://www.ey.com/en_gl/technical/tax-alerts/uae-introduces-enhanced-wage-protection-system-effective-1-june-2026)

## End-of-service gratuity (mainland)

Under Article 51 of Federal Decree-Law No. 33 of 2021, an employee with at least one year of continuous service earns gratuity on their **last basic salary** . Allowances do not count, and days of unpaid absence are not counted as service.

| Rule | Value |
| --- | --- |
| Years 1 to 5 | 21 days' basic salary a year |
| Each year after 5 | 30 days' basic salary a year |
| Part years | Pro rata, once the first year is complete |
| Cap | Two years' wage |
| Paid within | 14 days of the contract ending |

Example: AED 7,000 basic salary and two full years gives 7,000 ÷ 30 × 21 × 2 = AED 9,800. Employers may instead join MOHRE's optional savings scheme, where monthly contributions are invested and paid out when employment ends.

[Use the UAE gratuity calculator](https://peoplo.ai/ae/en/tools/gratuity-calculator/)

Sources · checked 31 October 2026

- [UAE Government: end of service benefits in the private sector](https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/end-of-service-benefits-for-employees-in-the-private-sector)
- [Federal Decree-Law No. 33 of 2021: Article 51 (gratuity) and Article 67 (a month counts as 30 days)](https://assets.u.ae/api/public/content/eb65a60bbff949fa912eddd566613014?v=7174ed78)

## DIFC: DEWS instead of gratuity

In the Dubai International Financial Centre, gratuity is replaced by DEWS, a funded savings plan. Employers pay a share of each employee's **monthly basic salary** : **5.83%** for employees with under five years' service and **8.33%** from five years. It is mandatory for employees who are not UAE or GCC nationals; nationals are covered by their pension scheme.

Sources · checked 31 October 2026

- [DIFC: Employment Law, DIFC Law No. 2 of 2019, Article 66 (DEWS contributions)](https://assets.difc.com/v1/media/edge/images/dubaiintern0078-difcexperie96c5-production-3253/media/project/difcexperiences/difc/difcwebsite/documents/laws--regulations/employment-law.pdf)

## ADGM

Abu Dhabi Global Market has its own Employment Regulations 2024, in force since 1 April 2025. Gratuity is payable whatever the reason employment ends, and an employer may offer a pension or savings scheme instead. Check the regulations for the exact day rate before you calculate an ADGM payout.

Sources · checked 31 October 2026

- [ADGM Employment Affairs Office: Employment Regulations 2024 FAQs (Feb 2025)](https://assets.adgm.com/download/assets/ADGM+EAO+-+FAQs+-+ER+2024+(Feb+2025).pdf/eed10768edbe11ef9eaee2d468ad6a26)

## Pension for UAE nationals: GPSSA

Emirati employees in the private sector are covered by a pension instead of gratuity. Outside Abu Dhabi that is the GPSSA, under Federal Decree-Law No. 57 of 2023; UAE nationals working in Abu Dhabi are covered by the Abu Dhabi Pension Fund (ADPF), which has its own rates.

| Who pays | Insured salary below AED 20,000 | AED 20,000 or more |
| --- | --- | --- |
| Employee | 11% | 11% |
| Employer | 12.5% | 15% |
| Government | 2.5% | None |

Insured salary is at least AED 3,000 and at most AED 70,000 a month.

Sources · checked 31 October 2026

- [Federal Decree-Law No. 57 of 2023 on pensions and social security](https://uaelegislation.gov.ae/en/legislations/2254/download)
- [GPSSA: main features of Federal Law No. 57 of 2023](https://www.gpssa.gov.ae/pages/en/media-center/news/gpssa-reviews-most-prominent-features-federal-law-no-57-2023)
- [UAE Government: pensions and social security for UAE citizens (ADPF)](https://u.ae/en/information-and-services/jobs/Sector-of-employment/working-in-uae-government-sector/pensions-and-social-security-for-uae-citizens)

## Emiratisation

Mainland companies with 50 or more employees must raise the share of Emiratis in skilled jobs by **2% a year** : 1% by 30 June and 1% by 31 December. Companies with 20 to 49 employees in 14 named sectors must employ at least 2 Emiratis from 2025. The rules do not apply in the DIFC or ADGM.

| Year | Monthly contribution per Emirati not hired |
| --- | --- |
| 2022 | AED 6,000 |
| 2023 | AED 7,000 |
| 2024 | AED 8,000 |
| 2025 | AED 9,000 |
| 2026 | AED 10,000 |

Pages that quote different penalty figures are usually quoting different years. Employers can find candidates through Nafis, the national Emiratisation programme.

Sources · checked 31 October 2026

- [UAE Government: employing Emiratis in the private sector](https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/emiratis-employment-in-private-sector)
- [WAM (Emirates News Agency): MOHRE on the half-yearly targets and the 2026 contribution, 22 June 2026](https://www.wam.ae/en/article/c0uqocb-mohre-reaffirms-june-deadline-for-private-sector)
- [ADGM: federal Emiratisation laws do not apply in financial free zones (EAO FAQs)](https://assets.adgm.com/download/assets/ADGM+EAO+-+FAQs+-+ER+2024+(Feb+2025).pdf/eed10768edbe11ef9eaee2d468ad6a26)

## Overtime and annual leave

Normal hours are 8 a day or 48 a week. Overtime is paid on the **basic wage plus at least 25%** , or 50% between 10 pm and 4 am (except shift workers), and a rest day worked earns another day off or the day's wage plus 50% (Article 19). Overtime is limited to 2 hours a day as a rule.

Annual leave is at least **30 days a year** , or 2 days a month after 6 months of service. Leave taken is paid at the full wage, basic plus allowances; unused days paid out at exit are paid on the basic wage (Article 29).

[Use the UAE overtime calculator](https://peoplo.ai/ae/en/tools/overtime-calculator/) [Use the UAE leave salary calculator](https://peoplo.ai/ae/en/tools/leave-salary-calculator/) [Read the full UAE labour law guide](https://peoplo.ai/ae/en/uae-labour-law/)

Sources · checked 31 October 2026

- [Federal Decree-Law No. 33 of 2021: Article 19 (overtime) and Article 17 (working hours)](https://assets.u.ae/api/public/content/eb65a60bbff949fa912eddd566613014?v=7174ed78)
- [UAE Government: working hours and overtime in the private sector](https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/working-hours)

General information, not legal advice. Rules change; each section says when we checked it and links to its source. If anything here is out of date, write to team@peoplo.ai .

Questions

## Frequently asked questions

Short answers on UAE payroll rules, each with the date we checked it.

### When must UAE private-sector salaries be paid?

Since 1 June 2026, salaries for a month are due on the first day of the following month, through WPS or another MOHRE-approved system, under Ministerial Resolution No. 340 of 2026. An employer counts as compliant when at least 85% of total wages due are paid on time. Checked 31 October 2026.

### How is end-of-service gratuity calculated in the UAE?

On a mainland contract, after one year of continuous service: 21 days' basic salary for each of the first five years and 30 days for each year after, capped at two years' wage, paid within 14 days of the contract ending. Checked 31 October 2026.

### Does gratuity apply in the DIFC?

No. DIFC employers pay into DEWS instead: 5.83% of monthly basic salary for employees with under five years' service and 8.33% from five years. UAE and GCC nationals are covered by their pension scheme instead. Checked 31 October 2026.

### What is the Emiratisation contribution in 2026?

Mainland companies with 50 or more staff must grow the Emirati share of skilled jobs by 2% a year, 1% by each of 30 June and 31 December. In 2026 the contribution for each Emirati not hired is AED 10,000 a month. Checked 31 October 2026.