UAE: Private sector companies in the UAE must pay employee salaries on the first day of every month starting June 1, 2026, under a new wage protection rule issued by the Ministry of Human Resources and Emiratization.
The rule is under Ministerial Resolution No. 340 of 2026. It states that salaries for the previous month must be transferred through the Wage Protection System or another payment system approved by MOHRE. Any payment made after the first day of the month will be treated as delayed.
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Salaries Must Pass Through Approved Payment Channels
The new rule applies to private sector establishments registered with MOHRE.
Companies must provide documents and data showing that wages were paid according to approved rules. This is important because salary payments are tracked through official systems, not just through verbal promises or private arrangements.
A company will be considered compliant if it pays at least 85 percent of the total wages due to workers on time. A worker will not be counted as unpaid if they receive at least 85 percent of their salary and the remaining amount is linked to legally documented deductions.
Penalties Start Soon After the Due Date
MOHRE’s action starts early when salaries are delayed.
- From the second day after salaries become due, companies may receive electronic monitoring notices and warnings.
- From the fifth day of delay, companies may face suspension of new work permits. Employers will also be formally notified and required to settle unpaid wages.
- From the 11th day, repeated violations within six months may lead to administrative fines and company downgrading to the third business classification category.
Delays Beyond 16 Days Can Lead to Labor Disputes
If salary delays continue beyond the 16th day, affected workers may have individual or collective labor disputes registered on their behalf.
Further work permit suspensions may also apply, especially to companies with 25 workers or more. This may affect sectors such as construction, transport, storage, security, cleaning, and recruitment services.
From the 21st day of delay, harsher action may follow. Companies with 50 workers or more may be referred to public prosecutors in cases of repeated violations.
Authorities may also issue orders to recover unpaid wages, seize assets as a precaution, impose travel bans on responsible company officials, and notify other government entities to take legal steps.
Some Workers and Permits Are Excluded
The resolution excludes some categories from wage protection calculations. These include workers in active labor disputes, employees reported absent from work, workers on unpaid leave, and foreign workers paid outside the UAE by overseas entities.
Short-term work permits of less than three months, fishing boats, citizen-owned public taxis, banks, and places of worship are also exempted.
