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UAE Salary Payment Rules Change from June 1: What Employers and Workers Need to Know

01 Jun 2026 • 6 min read

Anna Fischer

Construction Content Writer

Private sector companies in the UAE are now required to employee salaries by the first day of each calendar month. Any payment made after this date will be treated as delayed.

The new rule came into effect on June 1, 2026, as part of the updated Wage Protection System (WPS) introduced by the Ministry of Human Resources and Emiratisation (MoHRE). These changes are based on Ministerial Resolution No. 340 of 2026 and apply to all private sector establishments registered with the Ministry.

A Unified Monthly Deadline for Salary Payments

Under the updated system, the first day of each month is the official deadline for paying salaries owed for the previous month. Employers must transfer wages through the Ministry-approved Wage Protection System or another payment channel approved by MoHRE.

Companies are also required to submit the necessary documents and data that allow the Ministry to verify salary payments and confirm compliance.

Learn more: the Power of WPS in UAE Construction

How Wage Compliance Will be Calculated

The updated WPS sets clear rules for checking whether salaries have been paid on time.

A company will be considered compliant if it pays at least 85% of the total salaries due to its employees by the deadline. The same applies to each worker: if an employee receives at least 85% of their salary, they will not be treated as unpaid under the WPS calculation.

However, the employee still has the right to claim any remaining unpaid amount. The system also allows for deductions permitted under UAE labour law.

Learn more: the UAE Labor Law for Construction Companies

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Measures for Late Salary Payments

MoHRE has introduced a phased enforcement process for companies that fail to pay salaries on time.

From the salary due date, the company will be placed under electronic monitoring until the payment is confirmed. Starting from the second day after the deadline, MoHRE will begin sending notices and reminders requiring the employer to settle the outstanding wages.

If the payment remains outstanding, the Ministry may suspend the issuance of new work permits for the company and formally notify the employer of the reason.

On the fifth day after the deadline, MoHRE will issue an official warning. On the eleventh day, the company may face administrative fines. If the same violation is repeated within six months, the company may be downgraded to Category Three.

Labour Dispute Procedures After 16 Days of Non-Payment

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

This applies to establishments employing 25 or more workers. It also applies to companies under common ownership if the combined number of unpaid workers reaches 25 or more in certain sectors, including:

Construction
Transport and storage
Security services
Cleaning services
Recruitment agencies
Domestic worker recruitment offices

The final enforcement stage begins on the twenty-first day after the salary payment due date.

For companies with fewer than 50 employees, an executive order may be issued to recover unpaid wages. For companies with 50 or more employees, collective labour dispute procedures may be launched.

Additional measures may include the precautionary attachment of company assets, travel bans on responsible officials, referral to the Public Prosecution, and the submission of relevant documents and evidence to the competent authorities.

For companies with more than 50 workers, these measures may be applied if wage violations are repeated for two consecutive months.

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Referral to the Public Prosecution

Companies employing 50 or more workers may be referred to the Public Prosecution if salary 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 such as construction, transport and storage, security services, cleaning services, recruitment, and domestic worker recruitment.

MoHRE may also refer a case to the Public Prosecution, regardless of company size, if the violation threatens labour market stability.

Categories Excluded from WPS Compliance Calculations

The new system excludes several categories from wage compliance calculations:

Employees with wage-related labour claims already referred to court
Employees officially reported as absent from work
Employees on approved unpaid leave
Seafarers working aboard vessels, subject to Ministry approval
Foreign employees whose salaries are paid outside the UAE, subject to approval
Employees holding mission work permits valid for no more than three months
Banks and financial institutions
Places of worship

Other exemption categories may also apply under MoHRE regulations.

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Approved Salary Payment Channels

Salaries must be paid through the Wage Protection System, an electronic platform developed by the Central Bank of the UAE in cooperation with MoHRE.

The system processes wage payments through approved banks, exchange houses, and licensed financial institutions. It also allows the Ministry to monitor whether employers are paying workers the agreed amounts on time.

Salaries may be paid in UAE dirhams or in another currency if both the employer and employee agree to this in the employment contract.

Employee Rights in Case of Delayed Salaries

Workers who experience delayed or unpaid salaries can contact MoHRE or file a wage-related complaint through the Ministry’s official channels.

Employers are responsible for ensuring that wages are paid in full and on time. Failure to comply may lead to fines, suspension of new work permits, labour disputes, legal action, asset attachment measures, and travel bans for responsible officials.

Pay your teams accurately and on time

Process payroll in FirstBit ERP

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Practical Takeaway for Employers

The updated WPS rules make accurate and timely payroll processing more important than ever. Employers need reliable tools that reduce manual work, prevent calculation errors, and help them stay compliant with UAE labour requirements.

FirstBit ERP makes this process faster and easier: the system calculates salaries in one click and generates payment files for salary transfers without unnecessary manual steps. This helps companies save time, reduce the risk of mistakes, and meet the new legal requirements with greater confidence.

Explore: HR & Payroll

Anna Fischer

Construction Content Writer

Anna has background in IT companies and has written numerous articles on technology topics.

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