Private sector employers in the UAE will be required to pay workers their monthly salaries no later than the first day of each month under a new ministerial resolution set to take effect on June 1, 2026.
Ministerial Resolution No. 340 of 2026, issued by the Ministry of Human Resources and Emiratisation (MOHRE), stipulates that wages for the preceding month must be transferred through the Wage Protection System (WPS) or any other payment platform officially approved by the ministry. Salaries processed after the deadline will automatically be classified as delayed.
Companies will also be required to submit documents and data confirming that salary payments have been made in accordance with approved regulations.
Under the resolution, a company is considered compliant if it disburses at least 85 percent of the total wages owed to its workforce on schedule. An individual worker will not be regarded as unpaid if they receive at least 85 percent of their salary, provided the shortfall is attributable to legally documented deductions.
Penalties escalate progressively based on how long a delay persists. Beginning on the second day after salaries fall due, the ministry will initiate electronic monitoring and issue warning notices. By the fifth day, companies may have new work permit applications suspended and will be formally notified to settle outstanding wages.
Firms that remain non-compliant through the 11th day and have a prior violation within the preceding six months face additional administrative fines under existing cabinet regulations, along with a downgrade to the third business classification category.
Should delays extend to 16 days, individual or collective labour disputes may be filed on behalf of affected workers. Companies with 25 or more employees, or those operating in sectors such as construction, transport, storage, security, cleaning and recruitment, face further restrictions on work permit issuances.
From the 21st day of non-payment, MOHRE may refer cases involving firms with 50 or more workers to public prosecutors, particularly where violations are repeated. Enforcement measures at this stage can also include orders to recover unpaid wages, precautionary seizures of company assets and travel bans on responsible officials, with relevant government entities notified to pursue legal action.
Several categories are excluded from WPS calculations under the resolution. These include workers involved in active labour disputes, employees reported absent, those on unpaid leave and foreign nationals paid abroad by overseas companies. Exemptions also apply to short-term work permits of under three months, fishing vessels, citizen-owned public taxis, banks and houses of worship.
While employers may designate third parties to process salary payments, the resolution places legal responsibility for timely wage transfers squarely on the employer.
