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Dahhan Business Services
Regulatory Advisory
Important Wage Protection System Compliance Update
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Dear Valued Client,
We would like to inform you of an important regulatory update issued by the Free Zones Authority of Ajman (FZA), in line with UAE Ministerial Resolution No. (340) of 2026 concerning the Wage Protection System (WPS).
All establishments operating within the Ajman free zone are required to comply with the approved wage payment requirements set out under the updated framework, and to maintain supporting documentation available for inspection at all times.
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What Establishments Must Do
In accordance with the notice, all establishments are required to:
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Pay employees' wages on their due dates, in line with the payment mechanisms approved under the Wage Protection System. |
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Pay wages for each Gregorian month on the first day of the following month. |
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Maintain payroll records, salary transfer statements, and any related documents submitted through banks, exchange houses, or approved payment channels. |
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Present these records to the Compliance and Inspection Team upon request for review or verification. |
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Submit payroll statements through the electronic portal within approved deadlines, where required or notified by the Authority. |
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Non-Compliance Penalties
Failure to comply with the above requirements may expose an establishment to violations, fines, suspension of services, and other administrative measures, in accordance with the laws, regulations, and applicable systems enforced by the Free Zones Authority of Ajman.
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Why This Matters for Your Business
Wage compliance is now an active area of regulatory oversight rather than a routine HR task. Establishments are encouraged to review current payroll processes, ensure timely disbursement, and keep documentation audit-ready ahead of any compliance review.
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How to Stay Compliant
To ensure ongoing compliance, businesses are advised to:
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Review current payroll cycles against the approved wage payment schedule. |
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Organize and retain payroll records and salary transfer statements. |
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Confirm portal access and reporting deadlines for payroll statement submissions. |
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Reach out to the Authority for clarification on any specific requirements. |
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Stay tuned for further updates and guidance regarding Wage Protection System compliance requirements and future regulatory developments.
Best Regards,
Dahhan Business Services
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