Can a UAE employer pay salaries in a foreign currency?
Only if the employment contract says so. Article 22 of Federal Decree-Law No. 33 of 2021 requires salaries to be paid in UAE dirhams, and allows another currency where both parties agree in the contract. Payment must still be on the due date through the Wage Protection System or another system the Ministry approves.
On this page
The WPS due date
Under Resolution 340 of 2026, wages are due by the 1st of each month for the previous month. A contract in another currency does not change the date or the WPS route.
Gratuity and currency
End-of-service benefits use the last basic wage. Where pay is in another currency, the contract and records should be clear about the basic wage amount so the calculation is not disputed.
How SupaJack Construct helps
Payroll is calculated and posted in AED, with currency rates stored by date in the finance module for other transactions.
The amount transferred through WPS is the AED net pay from the payslip, so the bank file and the ledger agree.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A contractor's European project director has a contract stating pay in euros, which both parties signed. That is allowed under Article 22. His salary still goes through WPS by the 1st of each month.
Questions people ask
Is AED the default?
Yes, unless the contract agrees another currency.
Does WPS still apply?
Yes.
Which wage is gratuity based on?
The last basic wage.