The United Arab Emirates (UAE) has announced a new salary payment rule for private sector employees, making wages officially due on the first day of every month starting June 1, under updated regulations introduced by the Ministry of Human Resources and Emiratisation (MOHRE).
Under the new framework, employers are required to transfer salaries for the previous month through the Wage Protection System (WPS) or any other payment platform approved by MOHRE.
The ministry said the move aims to streamline wage payment procedures, improve compliance, enhance labour market stability and ensure greater transparency regarding employer responsibilities.
While the change may have little immediate impact on workers whose companies already pay salaries at the beginning of each month, the updated rules significantly shorten the timeframe for authorities to take action against employers who delay payments.
According to the revised system, officials can begin electronically monitoring unpaid salaries from the second day after they become due. By the fifth day of non-payment, companies may face administrative penalties, including restrictions related to work permits and other labour services.
Stricter measures will apply to repeat offenders and larger firms. Businesses with 50 or more employees could face tougher legal action if salary delays persist over an extended period.
MOHRE has also clarified salary compliance standards, stating that companies paying at least 85 percent of total wages on time may still be considered compliant in specific cases, provided any remaining deductions are legally justified and documented.
The latest ministerial resolution builds on the UAE’s existing Wage Protection System, which electronically tracks salary payments, by introducing fixed salary due dates, faster enforcement procedures and stronger penalties for repeated violations.
Officials said the updated regulations are intended to ensure timely salary payments, protect employee rights and strengthen confidence in the UAE’s labour market.
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