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The UAE's Ministry of Human Resources and Emiratisation (MOHRE) issued new rules requiring private sector companies to pay employee salaries on the first day of every month, starting from June 1, 2026.
The new rules are part of efforts to strengthen wage protection and labour compliance.
As part of Ministerial Resolution No. 340 of 2026, salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or any other payment system authorised by the ministry.
Any payments made after the due date will now be considered a delayed payment.
The ministry said all registered private sector establishments would be required to provide documents and dates proving salary payments in accordance with the new regulations.
A company will be considered compliant if it transfers at least 85% of the total wages due to workers on time.
Companies that are not compliant will face a series of escalating penalties for late payments, starting with electronic monitoring and warning notices from the second day after salaries are due.
From the fifth day of delay, companies could face suspensions of new work permits, with employers formally notified of the violations and required to settle unpaid wages.
From the 11th day of violations, companies face additional administrative fines if violations are repeated within six months, alongside the downgrading of offending companies into the third business classification category.
If delays continue beyond the 16th day, affected workers may have individual or collective labour disputes registered on their behalf, while further work permit suspensions may be imposed, particularly on companies employing 25 workers or more, or operating in sectors such as construction, transport, storage, security, cleaning and recruitment services.
The ministry said harsher penalties would apply from the 21st day of delay, including referrals to public prosecution for companies employing 50 workers or more in cases of repeated violations.
Authorities may also issue enforcement orders to recover unpaid wages, impose asset seizures or travel bans on company officials.
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