The UAE has introduced a major update to its Wage Protection System (WPS), effective June 1, 2026, requiring all private-sector employers to pay employee salaries on the first day of each Gregorian month for the previous month’s work.
Issued under Ministerial Resolution No. 0340 of 2026 by the Ministry of Human Resources and Emiratisation (Mohre), the regulation aims to improve wage transparency, ensure timely salary payments, and strengthen worker protections throughout the UAE’s private sector.
Under the new rule, companies must process salaries through approved WPS channels and submit payment records and supporting documentation in line with ministry procedures. A company will still be considered compliant if at least 85% of total employee wages are paid on time, allowing for legally permitted deductions or withholdings under UAE labour law. Employees also retain the right to claim any unpaid amounts.
The resolution introduces escalating penalties for delayed salary payments. Employers failing to pay wages on time may face warnings, suspension of new work permits from the fifth day of delay, administrative fines from the eleventh day, and possible company reclassification for repeated violations.
The move reflects the UAE’s continued commitment to enhancing labour rights, improving employer accountability, and creating a more transparent and stable working environment for both businesses and employees.
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