UAE sets unified salary deadline for private sector from June 1, 2026
New WPS rule UAE: UAE implements fresh Wage Protection System law, uniform salaries in private sector enforced to be paid on 1st day of every Gregorian calendar month for work performed in the previous month.
The system will consider payments made after this date as overdue at a future date: June 1, 2026.
The new regulation requires all establishments registered with the ministry to pay salaries via the approved Wage Protection System or other payment channels authenticated by the ministry. As per rules and procedures stipulated by the ministry, employers must provide documents and data proving that they paid them their salaries.
Issued by the Minister of Human Resources and Emiratisation (Mohre) on May 12, the decision seeks to enhance adherence with timelines for payrolls among private-sector establishments. A clearer and unified salary deadline will help improve transparency in wage payments and strengthen protections for the workforce, according to the new rule.
85% Wage Payment Compliance Threshold
Clear thresholds have been defined by the UAE to ascertain, if firms are complying with salary payments under the Wage Protection System (WPS) and penalties for delays.
A private company in the UAE will be compliant under Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System if it pays at least 85 per cent of its employees' total due wages within the over-due period specified by law. This limit considers cases in which part of the remuneration can legally be deducted or withheld.
For example, if a worker is paid 85 per cent or more of their full entitled wage, they will continue to be regarded as having received their wages. For this purpose until the last amount is due, under existing laws continues by way of deductions or withholdings legally permissive. Nonetheless, this does not deny the worker's claim of all monetary amounts owed.
The regulation also clarifies that companies need to be penalized for not paying wages on time. The resolution states that penalties and measures will be enforced in accordance with existing laws and procedures as judicial, regulatory authorities will keep oversight of these enforcement actions.
How Do You Deal With Companies Delaying Wage Payment
Now, the new decision defines a series of increasingly stringent measures to be taken against companies who do not disburse their wages on time under the Wage Protection System.
From the second day, authorities will start taking action if wages are not paid till their due date. This includes:
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Causing notifications and alerts to be sent to places of business that are not compliant
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Advising Employers to Clear Off Pay Back Wages
Failure to comply would see more stringent action: from the fifth day after the deadline, no new work permits will be issued to the company. An employer will put on notice of the suspension, with reasons why it should be suspended, and with a further warning that outstanding wages must be made up.
Administrative Fines, No New Work Permit
If pretext fails and wages are not paid, employers will face a tougher stance if the payments are not done by 11 days after the due date. Identifying that the company is imposed with administrative fines as per Cabinet Resolution No 21 of 2020. If there are repeated violations in a time frame of six months, the company will then be reclassified into the third category, and other actions will also take place.
From the 16th day after the deadline, for companies who do not comply, authorities will automatically enter an individual or collective labour dispute on behalf of affected workers based on how many cases there are. Meanwhile, it will not issue any new work permits.
The measures apply to employers with 25 unpaid workers or more. They also cover employer owned businesses if at these locations 25 or more workers are affected. It specifically applies to the industries:
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Construction
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Transport and storage
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Security services
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Cleaning services
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Recruitment agencies
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Domestic worker recruitment offices
Executive Order, Travel Ban
On the 21st day of expiry of the salary date deadline, an executive order will be given to force all companies with a workforce of less than 50 to pay wages or initiate procedures for registering collective labour disputes if such companies have over 50 workers. Simultaneously, a precautionary seizure process may be started against the company itself and a travel ban may also be issued against the individual managing the establishment.
Companies of over 50 employees can be referred to the Public Prosecution in case violations are repeated for two consecutive months, with authorities forwarding all related documents and data for prosecution. Even if businesses have separate legal identities, they may have to pay wages owed across them as an employer is still responsible for unpaid employees, and this applies when the number of unpaid workers across entities reaches 50 - particularly in construction, transport, security cleaning and recruitment.
It also states that authorities can intervene irrespective of how big the establishment is, if it poses a threat to the stability of UAE labour market, highlighting UAE's bid for ensuring timely payments.
Who is Excluded from Wage Protection System
It also discusses a few instances where workers and entities will be exempt from the Wage Protection System (WPS).
If the worker is already involved in a wage dispute that has been referred to court - or if an executive order has been issued - he will be left out for the period of time and up to the amount that is being discussed in court. Workers who are classified as absconding will also be immune during the duration of the report.
In addition to the above, exemptions from work - due to legal detention or court order and in connection with absence during unpaid leave - will also apply to workers at the request of which notification is given by the Ministry and submitted relevant documents in accordance with approved rules.
However, there are some categories of workers excluded from WPS, including:
Seafarers (subject to ministry approval)
Foreigners working for foreign firms domiciled outside the UAE
Workers on a short-term mission permit (maximum three months).
It also leaves some sectors and activities out completely as well, which includes individual-owned fishing boats (and public taxis), banks, financial institutions, and places of worship.
These exemptions are meant to provide for specific employment circumstances whilst preserving the overall structure of the wage protection framework.
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