UAE sets unified salary deadline for private sector from June 1, 2026

The UAE has introduced a sweeping reform to its Wage Protection System (WPS), mandating that all private-sector salaries must be paid on the first day of each Gregorian month for the previous month’s work, beginning June 1, 2026, as reported by khaleejtimes.

Under the new regulation, any salary paid after the specified date will automatically be treated as delayed under the Wage Protection System, tightening oversight on employers and strengthening worker protections across the country.

The decision, issued on May 12 by the Ministry of Human Resources and Emiratisation (Mohre), is aimed at creating a clear and standardised salary payment structure for all private-sector establishments registered with the ministry.

Companies registered with the Mohre are obligated to pay workers' wages through the approved Wage Protection System or any other systems adopted by the Ministry.

Employers will also be required to submit documents and data confirming wage payments in line with ministry procedures.

The move is expected to improve transparency in salary disbursement while reinforcing the UAE’s broader push to ensure timely wage payments and labour market stability.

Compliance rules

The UAE has also introduced detailed compliance thresholds under Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System.

A company will be considered compliant if it pays at least 85% of the total wages due to employees by the deadline. Authorities said the threshold accounts for legally permitted deductions or withholdings under UAE labour law.

Similarly, a worker will still be regarded as having received their salary if at least 85% of the entitled wage has been paid, provided the remaining amount falls under lawful deductions. However, workers will continue to retain the right to claim any outstanding unpaid amounts.

Authorities have warned that companies failing to meet payment obligations on time will face escalating penalties and enforcement measures.

Escalating action

The UAE has outlined a strict timeline of enforcement against companies delaying wage payments.

From the second day after the salary due date, authorities will begin issuing notifications and alerts to non-compliant establishments.

If the delay extends to the fifth day, companies will no longer be granted new work permits. Employers will also receive formal notices explaining the suspension and urging immediate settlement of unpaid wages.

By the 11th day after the deadline, administrative fines will be imposed in accordance with Cabinet Resolution No 21 of 2020. Companies will also be downgraded to the third category, while repeat violations within six months could trigger harsher action.

From the 16th day, authorities will automatically register individual or collective labour disputes on behalf of affected workers, depending on the number of complaints. New work permit issuance will also remain suspended.

These measures will apply to employers with 25 or more unpaid workers, including businesses owned by the same employer if the combined number of affected employees reaches 25.

The rules particularly target sectors including construction, transport and storage, security services, cleaning services, recruitment agencies and domestic worker recruitment offices.

Tougher penalties

Authorities will intensify action further if wage delays continue beyond 21 days.

For companies with fewer than 50 workers, an executive order will be issued to ensure wages are paid. In larger firms with 50 or more workers, authorities will initiate collective labour dispute procedures.

At the same time, precautionary seizure procedures may be launched against companies, while travel bans can also be imposed on the individual responsible for the establishment.

Repeat violations over two consecutive months could lead to companies with more than 50 employees being referred to the Public Prosecution.

The same enforcement will extend to businesses under the same ownership if the total number of unpaid workers across entities reaches 50, particularly in sectors considered critical to labour market stability.

Authorities added that intervention may take place regardless of company size if wage delays are deemed a threat to the UAE labour market.

WPS exemptions

The resolution also clarified which workers and sectors will remain outside the scope of the Wage Protection System.

Workers involved in wage disputes already referred to court, or cases where executive orders have already been issued, will be exempt during the litigation period and for the disputed amount.

Employees reported as absconding will also be excluded during the validity of the report.

Additional exemptions apply to workers unable to perform duties due to legal detention, court orders or approved unpaid leave, provided the ministry is informed and supporting documents are submitted.

Certain worker categories are entirely exempt, including approved seafarers, foreign employees of overseas firms paid outside the UAE, and workers holding short-term mission permits valid for up to three months.

Some sectors are also excluded from the WPS framework, including fishing boats, individually owned public taxis, banks, financial institutions and places of worship.

The exemptions, authorities said, are designed to accommodate special employment arrangements while preserving the integrity of the UAE’s wage protection framework.