Effective 1 June 2026, the UAE has introduced a new unified salary payment deadline for private sector employers. Below is everything you need to know, and what you should do to stay compliant.
What are the latest changes?
The Ministry of Human Resources and Emiratisation (MOHRE) has issued Ministerial Resolution No. 340 of 2026, introducing a standardised monthly salary deadline across the private sector. From 1 June 2026, all private sector companies registered with MOHRE must pay employees their previous month’s wages on or before the 1st of each month.
Any salary payment made after this date will officially be classified as delayed under the UAE’s Wage Protection System (WPS).
Wages must be transferred through the approved WPS, or any other payment channel authorised by MOHRE. Employers are also required to maintain documentation confirming salary payments in accordance with the Ministry’s procedures.
What does staying “compliant” mean under the new rule?
A company is considered compliant if it pays at least 85% of the total wages due to its workforce by the deadline. This threshold accounts for instances where a portion of salary may be legally deducted or withheld in accordance with UAE labour law.
Similarly, an employee is not considered unpaid if they receive at least 85% of their entitled salary, provided the remaining balance relates to permitted legal deductions, though this does not affect the employee’s right to pursue any outstanding amounts.
It is also worth noting that companies may authorise a third party to process payroll on their behalf; however, legal responsibility for timely wage payment remains with the employer.
What are the penalties for late payment?
MOHRE has outlined a clear, escalating framework of consequences for companies that fail to meet the deadline.
- From Day 2 – Electronic monitoring is activated and warning notices are sent to non-compliant employers.
- From Day 5 – The company is suspended from being granted new work permits. The employer is formally notified and required to settle outstanding wages.
- From Day 11 – Administrative fines are imposed in line with Cabinet Resolution No. 21 of 2020. The company is reclassified to the third business category, and repeated violations within a six-month period will trigger further action.
- From Day 16 – Individual or collective labour disputes may be registered on behalf of affected workers. Work permit suspensions are extended. This applies particularly to companies with 25 or more unpaid workers, or to businesses under common ownership where the total affected headcount reaches 25, especially in sectors such as construction, transport and storage, security, cleaning, and recruitment.
- From Day 21 – Authorities may issue executive orders to recover unpaid wages. Precautionary asset seizures and travel bans may be imposed on the individuals responsible for the establishment. For companies with 50 or more employees, collective labour dispute procedures may be initiated.
In cases of repeated violations over two consecutive months, companies with more than 50 employees or where related entities collectively employ 50 or more affected workers may be referred to the Public Prosecution.
Authorities also reserve the right to intervene regardless of company size if there is risk to the stability of the UAE labour market.
Who is exempted from the new rules?
The resolution does identify certain categories of workers and establishments that fall outside the scope of the WPS:
- Workers involved in active wage disputes already referred to court, or where an executive order has been issued (for the period and amount under litigation)
- Employees reported as absconding (during the validity of the report)
- Workers unable to report due to legal detention or court orders
- Employees on approved unpaid leave, provided MOHRE has been notified with supporting documentation
- Seafarers (subject to MOHRE approval)
- Foreign employees of overseas companies paid outside the UAE
- Workers on short-term mission permits of up to three months
Certain sectors are also excluded entirely from WPS requirements, including fishing boats, individually owned public taxis, banks, financial institutions and places of worship.
What should employers do now?
- Review your current payroll cycle – Confirm whether your existing salary payment schedule aligns with the new 1st-of-the-month deadline.
- Ensure WPS compliance – Verify that all salary payments are processed through the approved WPS or a MOHRE-authorised channel.
- Audit your documentation – Make sure you have records in place to evidence timely and accurate payments.
- Review deduction policies – Any deductions must be legally documented and justifiable, to ensure the 85% threshold is met correctly.
For businesses operating across the UAE, staying on top of rapidly evolving labour regulations can be challenging, particularly when managing a distributed or multi-national workforce.
Links’ payroll outsourcing services are designed to keep you fully compliant with local regulations, including the UAE’s Wage Protection System requirements. Get in touch with our local team today to find out how we can support your business with the new regulations in the UAE!