New Wage Rule to Start From June 1, 2026
The UAE Labour Law has undergone a new rule under the Wage Protection System (WPS), by which private-sector employers are mandated to pay salary on first day of every Gregorian month starting from 1st June 2026. Under the new system all payments received after due date will be deemed to be salaries.
The Ministry of Human Resources and Emiratisation (Mohre) has made the decision to replace the salary transparency policy. Mohre has issued a decision on 2026/05/12 as part of the ongoing efforts to enhance salary transparency and bolster employee protections nationwide.
Employers Required to Use Approved Wage Systems
This is a new provision under the rules, which stipulates that all companies that register with Mohre will have to transfer employee salaries via the approved Wage Protection System or whichever ministry-approved payment means they are using. Businesses must also submit a document and payment receipt to support making payments on time. The rule provides for a unified and clear payroll philosophy for all employers in the private sector in the UAE, officials said.
UAE Defines Salary Compliance Threshold
The UAE’s salary compliance threshold is established at $1,600. This reworded version of the rule clarifies that if the companies pay at least 85 per cent of the wages due to an employee by the deadline, they should meet all the requirements to be considered compliant. Other deductions, which are legally permitted under UAE (United Arab Emirates) labour law may apply. However, employees who get at least 85 per cent of their entitled pay will still be regarded as receiving their pay under the system, even though they will still be able to claim what they don’t get.
Strict Penalties Introduced for Salary Delays
Warning – begins after 2 days.
From the second day past the payment date, authorities will begin to notify and warn the companies that don’t pay wages.
Work Permit Suspension After Five Days
In the situation of non-payment of salary for five days, companies will be subject to suspension of new work permits. Formal notifications will also be issued to employers giving them reason for the restriction.
Fines and Company Downgrades After 11 Days
The administrative fines pursuant to Cabinet Resolution No. 21 of 2020 are possible from day 11. The companies may also be demoted to the third category if violations are repeated, in particular.
Labour Disputes and Further Restrictions
If workers haven’t been paid after 16 days, labour disputes can be automatically entered by authorities on their behalf and further work permits revoked. These measures are for companies that employ 25 or more people who aren’t paid employed by the company and could be applicable to associated companies that are also owned by the employer. The ideas that are closely monitored include the construction sector, transport, applying service, recruitment agency and domestic worker recruitment office.
Travel Bans and Legal Cases for Repeat Offenders
The policy also makes for more concrete enforcement when salaries are late by 21 days. Authorities can issue executive orders to recover unpaid wages, initiate precautionary scale seizure on company firms and place bans on travel of responsible persons.
Where the business has over 50 staff, when several incidents of the breaches in salaries for two following months occurs, a referral to the Public Prosecutor may be made to initiate legal proceedings. Intervention happens in any company, regardless of its size. Wages are subject to delay, causing risks to the stability of the labour market in the UAE, added officials.
Workers and Sectors Exempt from WPS
There are also categories that are exempted from the Wage Protection System listed out in the resolution. Members of the workforce who are currently involved in wage claims before courts, members on unpaid leave according to the courts and in legal detention or absent (absconding) may be temporarily excluded from the system. The following are also exempt from:
- Approved seafarers
- Foreign staff of overseas companies paid outside the UAE
- Workers with a short-term mission permit for up to three months.
There are others which are not available anywhere, such as fishing boats, individually owned public taxis, banks, financial institutions and places of worship.
UAE Expands Focus on Timely Wage Payments
The new Wage Protection System underscores UAE’s continued efforts to enhance the rights of labour and assure timely payment of wages. With the one time a month wage date, and harder enforcement, authorities will strive for a better compliance rate in the private sector.
