UAE salary rule changes from June 1: What workers and employers must know

The Ministry of Human Resources and Emiratisation (MoHRE) has begun implementing the new Wage Protection System (WPS) tomorrow, Monday, 1 June 2026, under which the first day of every calendar month will serve as the unified salary due date for workers in private sector establishments for the preceding month. Any payment made after this date will be considered delayed.

The new system, introduced under Ministerial Resolution No. 340 of 2026, requires all establishments registered with MoHRE to pay employee wages on the designated due date through the Ministry-approved Wage Protection System or any other payment systems approved by the Ministry for this purpose.

All establishments are also required to submit the documents and data necessary to verify wage payments in accordance with the regulations and procedures established by the Ministry.

The new Wage Protection System establishes regulatory thresholds and procedures for assessing employers’ compliance, without affecting workers’ entitlement to their full wages and while taking into account legally permissible deductions under Article 25 of Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations.

Under these provisions, an establishment will be deemed compliant if it transfers at least 85% of the total wages due to its workforce by the salary due date. Similarly, an employee will not be considered unpaid if he or she has received at least 85% of the wage due, without prejudice to the employee’s right to claim any outstanding amounts.

The new system outlines a graduated enforcement mechanism for establishments that fail to pay wages on time, while respecting the powers of judicial authorities, the Public Prosecution, and other competent bodies.

The measures include:

1. Electronic Monitoring: Beginning from the due date and continuing until payment is verified, the establishment will be electronically monitored to ensure compliance.

2. Notifications and Alerts: Starting from the second day after the due date, non-compliant establishments will receive notices and reminders to settle wages. These continue until payment is confirmed or the next enforcement stage is reached.

3. Suspension of New Work Permits: The Ministry may suspend the issuance of new work permits for non-compliant establishments.

4. Employer Notification: The employer will be formally notified of the reasons for the suspension.

5. Official Warning: A formal payment warning will be issued to the employer on the fifth day following the salary due date.

6. Administrative Penalties: On the eleventh day after the salary due date, administrative fines stipulated under Cabinet Resolution No. 21 of 2020 may be imposed, and repeat offenders may be downgraded to Category Three under Resolution No. 209 of 2022 if the violation recurs within six months.

If wages remain unpaid by the sixteenth day after the due date, MoHRE will automatically register an individual or collective labour dispute on behalf of affected employees, depending on the circumstances.

This applies to establishments employing 25 workers or more across all sectors, as well as establishments under common ownership where the combined number of unpaid workers reaches 25 or more in sectors such as:

1. Construction

2. Transport and storage

3. Security services

4. Cleaning services

5. Recruitment agencies

6. Domestic worker recruitment offices

The sixth and final enforcement stage is triggered on the twenty-first day after the salary due date.

For establishments employing fewer than 50 workers, an executive instrument may be issued for wage recovery. For establishments with 50 workers or more, collective labour dispute procedures may be initiated.

Additional measures may include:

Precautionary attachment of the establishment’s assets

• Travel bans on responsible officials

• Referral of the case to the Public Prosecution and relevant authorities

• Submission of all relevant documents, records, and evidence for legal action

Where an establishment employs more than 50 workers, these measures may be applied if violations are repeated over two consecutive months.

MoHRE explained that establishments employing 50 workers or more may be referred to the Public Prosecution if wage payment violations are repeated.

The same applies to establishments under common ownership when the total number of unpaid workers reaches 50 or more in sectors including construction, transport and storage, security services, cleaning services, recruitment agencies, and domestic worker recruitment offices.

Referral may also occur whenever the violation poses a risk to labour market stability, regardless of the size of the establishment.

The new system excludes 11 categories from wage compliance calculations, including:

1. Employees with wage-related labour claims already referred to the competent courts or covered by an enforceable executive instrument.

2. Employees reported as absent from work during the validity of the absence report.

3. Employees whose liberty has been restricted by an order or judgment issued by a competent authority, provided the Ministry is notified and supporting documentation is submitted.

4. Employees on approved unpaid leave, subject to notification and supporting documentation.

5. Seafarers working aboard vessels, upon application by the employer and subject to Ministry approval.

6. Foreign employees working for foreign companies or branches in the UAE whose wages are paid outside the country, subject to employee consent and Ministry approval.

7. Employees holding mission work permits valid for no more than three months.

Additional exempt entities include:

8. Fishing boats owned by UAE nationals.

9. Public taxis owned by UAE nationals.

10. Banks and financial institutions.

11. Places of worship

The new Wage Protection System came into effect on 1 June 2026.

All private sector establishments must pay employee wages by the first day of each calendar month.

The system introduces stricter monitoring and enforcement measures to protect workers’ rights.

Salaries must be transferred electronically through the Wage Protection System (WPS), jointly administered by the Central Bank of the UAE and MoHRE.

Employers failing to comply may face permit suspensions, fines, labour disputes, judicial referrals, asset attachment measures, and travel bans.

Every worker and employee in the UAE is entitled to receive their salary in full and on time. Private sector employers are responsible for ensuring timely payment through the Wage Protection System to avoid violations and penalties.

Employees who experience delayed or unpaid salaries may contact the Ministry of Human Resources and Emiratisation or file a wage-related complaint through the Ministry’s official channels.

All establishments registered with MoHRE must pay employee wages through the Wage Protection System on the salary due date.

An employee’s wage becomes due from the first day of the month following the completion of the wage period specified in the employment contract. If no specific period is stipulated, wages must be paid at least once every month.

The UAE Labour Relations Law does not prescribe a statutory minimum wage. However, it includes general provisions requiring wages to be sufficient to meet employees’ essential needs.

Under the Wage Protection System, salaries are transferred through banks, exchange houses, and licensed financial institutions participating in the system.

Developed by the Central Bank of the UAE, the system enables MoHRE to maintain a comprehensive database of wage payments and monitor employers’ compliance with agreed salary amounts and payment deadlines.

Salaries may be paid in UAE Dirhams or in any other currency mutually agreed upon by the employer and employee under the employment contract.

UAE labour market legislation requires private-sector establishments to pay their employees’ wages on a monthly basis, in accordance with the amount and payment date stipulated in their employment contracts. Salaries must be disbursed through the Wage Protection System (WPS), an innovative electronic platform that facilitates wage transfers via approved banks, financial institutions, and exchange houses.

The scope of the system has also been expanded to include the mandatory application of the WPS to specific categories of domestic workers, while its use remains optional for other occupations within this sector.