What is the 85% rule in the UAE Wage Protection System?
An establishment counts as compliant if it transfers at least 85% of the total wages due to its workers by the due date. Article 2 of Resolution 340 of 2026 also treats a worker as paid if they receive at least 85% of their wage, provided the difference comes from lawful deductions. Workers can still claim anything owed.
What the 85% does and does not allow
It is a threshold for measuring compliance, not permission to pay less. The shortfall per worker must come from deductions the law allows under Article 25 of the labour law, such as loan instalments, overpayment recovery or approved fines. Unlawful shortfalls remain claimable.
Why deductions matter for contractors
Advance recovery, damage deductions and fines can push a worker's net pay below 85% of the gross wage in a single month. Article 25 caps total deductions at 50%, but the WPS test sits at 85%, so a month with heavy deductions may look like non-payment unless they are documented.
How SupaJack Construct helps
Each payslip deduction is an itemised line with its source, such as an advance instalment or a fine, so the difference between gross and net pay can be explained line by line if MOHRE asks.
Related tools and guides
See payroll and WPS in SupaJack Construct, the WPS SIF file checker, the answer on what a WPS SIF file is, the UAE labour law guide for contractors, the final settlement calculator, the unpaid leave deduction calculator, the answer on salary deduction limits and the meaning of WPS.
Worked example
A worker's wage is AED 2,000. In March the employer recovers a AED 250 advance instalment and pays AED 1,750, which is 87.5%. The worker is treated as paid. If the employer paid AED 1,600 with no lawful deduction behind the AED 400, the worker would be treated as unpaid.
Questions people ask
Is 85% the minimum wage payment?
No. It is a compliance threshold. Full wages remain due.
Does the rule cover the whole company?
Yes, the establishment must transfer at least 85% of total wages due.
Can a worker claim the other 15%?
Yes, any amount due can still be claimed.