The United Arab Emirates has introduced a new rule under its Wage Protection System (WPS) to standardize salary payment deadlines across the private sector, aiming to ensure timely wage distribution and improve labor compliance.
Under the updated regulation, private companies must pay employees’ salaries on the first day of each Gregorian month for the previous month.
Any payments made after this deadline will be classified as delayed starting June 1, 2026.
The decision, issued through a ministerial resolution by the UAE Minister of Human Resources and Emiratization, is designed to strengthen wage compliance and improve transparency in salary payments across all registered private sector establishments.
All companies must process salaries through the approved Wage Protection System or other authorized payment channels and submit proper documentation confirming wage transfers.
Compliance Threshold and Penalties
Under the new framework, companies will be considered compliant if they pay at least 85% of total wages due by the deadline. This includes cases where legal deductions apply under labor laws.
Authorities have also introduced a tiered penalty system for delayed payments. From the second day of delay, companies will receive warnings and notifications. By the fifth day, they may be barred from receiving new work permits.
If delays continue beyond 11 days, companies may face administrative fines, reclassification to a lower compliance category, and additional restrictions for repeat violations.
From the 16th day onward, labor disputes may be officially registered on behalf of workers, and companies may face suspension of new work permits.
For severe or repeated violations, authorities may impose executive orders, travel bans on responsible individuals, asset seizures, and even refer cases to public prosecution.
Exemptions and Scope
The resolution also outlines specific exemptions, including workers involved in ongoing wage disputes, absconding employees, and those on approved unpaid leave.
Certain sectors such as fishing boats, public taxis, banks, and some foreign workers are also excluded from the system.
The UAE government said the updated WPS framework is aimed at improving wage transparency, strengthening worker protections, and ensuring consistent and timely salary payments across the private sector.
