UAE sets monthly salary deadline for private sector from June 1

The Ministry of Human Resources and Emiratisation (MOHRE) has issued a new rule requiring private sector companies to pay employee salaries on the first day of every month beginning June 1, 2026, as part of efforts to strengthen wage protection and labour compliance.

Under Ministerial Resolution No. 340 of 2026, salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or any other payment systems authorised by the ministry. Any payment made after the due date will be considered delayed.

Get updated faster and for FREE: Download the Gulf News app now - simply click here.

The ministry said all private sector establishments registered with it would also be required to provide documents and data proving salary payments in accordance with approved regulations.

The new rules define a company as compliant if it transfers at least 85 per cent of the total wages due to workers on time. An employee will not be considered unpaid if they receive at least 85 per cent of their salary and the remaining amount results from legally documented deductions.

Authorities outlined a series of escalating penalties for late payments, beginning with electronic monitoring and warning notices from the second day after salaries become due.

From the fifth day of delay, companies could face suspension of new work permits, with employers formally notified of the violations and required to settle unpaid wages.

Additional administrative fines under existing cabinet regulations would apply from the 11th day if violations are repeated within six months, alongside the downgrading of offending companies into the third business classification category.

If delays continue beyond the 16th day, affected workers may have individual or collective labour disputes registered on their behalf, while further work permit suspensions may be imposed, particularly on companies employing 25 workers or more or operating in sectors including construction, transport, storage, security, cleaning and recruitment services.

The ministry said harsher penalties would apply from the 21st day of delay, including referrals to public prosecutors for companies employing 50 workers or more in cases of repeated violations.

Authorities may also issue enforcement orders to recover unpaid wages, impose precautionary asset seizures and travel bans on responsible company officials, while notifying other government entities to take legal measures.

The decision excludes several categories from wage protection calculations, including workers involved in active labour disputes, employees reported absent from work, those on unpaid leave and foreign workers paid outside the UAE by overseas entities.

The resolution also exempts short-term work permits of less than three months, fishing boats, citizen-owned public taxis, banks and places of worship.

The ministry said companies could authorise third parties to process salary payments, although legal responsibility for timely wage transfers would remain with employers.