Picture for illustrative purposes only. ARCHIVE

Private sector companies in the UAE will face a strict new wage deadline starting June 1, requiring them to pay employee salaries on the first day of every month. Issued by the Ministry of Human Resources and Emiratisation (MOHRE) under a Ministerial Resolution, the regulation aims to tighten labor compliance and enhance worker protections nationwide. Under the new mandate, salaries must be paid on the first day of the month, and all previous month's salaries must be processed electronically through the approved Wage Protection System (WPS) or other ministry-authorized channels. Any salary transferred after the first day of the month will officially be designated as a delayed payment. To maintain compliant status, companies must transfer a minimum of 85 percent of the total wages due to their workforce on time. An employee's wage will not be marked as unpaid if they receive at least 85 percent of their pay, provided the remainder is withheld under legally documented deductions. The ministry warned that companies are required to readily provide data and documentation validating their monthly salary distributions. While employers may outsource salary processing to third-party providers, the legal liability for timely payments remains strictly with the company.

Timeline of penalties for late salary payments

Failure to meet the new June 1 deadline triggers an escalating system of administrative and legal penalties: • Day 2 of delay: Electronic monitoring begins, and formal warning notices are issued to the employer. • Day 5 of delay: The ministry will suspend the issuance of new work permits for the non-compliant company. • Day 11 of delay: Repeat violators (within a six-month period) face administrative fines and will be downgraded to the third business classification category. • Day 16 of delay: Affected employees can have individual or collective labor disputes formally registered on their behalf. Additional work permit blocks are enforced, targeting firms with 25+ workers or those in construction, transport, security, cleaning, storage, and recruitment. • Day 21 of delay: Companies with 50 or more workers facing repeat violations will be referred directly to the public prosecutor. Authorities may also issue enforcement orders to recover unpaid wages, initiate travel bans, enforce precautionary asset seizures on responsible company officials, and coordinate with other government bodies for further legal action.

Q&A: New UAE wage rules and exemptions

When does the new salary deadline rule take effect? The regulation goes into effect on June 1, 2026. Are any worker categories excluded from these wage protection calculations? Yes. The regulations exclude employees involved in active labor disputes, workers reported absent, employees on unpaid leave, and foreign workers paid outside the UAE by overseas entities. Are any business sectors exempt from the resolution? Short-term work permits (under three months), fishing boats, citizen-owned public taxis, banks, and places of worship are exempt from these specific requirements. MAM/ICA/Expat Media
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