The United Arab Emirates has introduced a new regulation under its Wage Protection System (WPS) to ensure the timely payment of salaries in the private sector.
The move aims to further streamline and improve transparency in wage disbursement across the country.
The Ministry of Human Resources and Emiratisation has stated that, under the new rule, private companies will be required to pay employees’ salaries for the previous month by the first day of each month. Any payment made after this date will be considered delayed. The new rule will come into effect from June 1, 2026.
The decision was issued on May 12 and follows an earlier ministerial resolution aimed at strengthening compliance and ensuring timely salary payments in private sector companies.
Under the updated regulations, all registered companies must process salary payments through the approved Wage Protection System or other authorised channels approved by the ministry.
Companies will also be required to submit proof of salary payments and maintain proper records for inspection by the ministry.
The ministry has set a clear compliance benchmark, stating that a company will be considered compliant if it pays at least 85% of employees’ salaries on time. This allowance also covers cases where partial deductions are made due to legal or valid reasons.
However, employees will still retain the right to claim their full entitled salary amount.
Strict action will be taken against companies that fail to pay salaries on time, including fines and other administrative penalties under existing laws.
Officials said the main goal of the system is to protect workers’ rights, ensure timely wage payments, and enhance transparency in the private sector.
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