The UAE has introduced a new Wage Protection System (WPS) regulation requiring private-sector employers to pay wages on the first day of each Gregorian month for the previous month’s work. Payments made after this deadline will be considered delayed from June 1, 2026. Companies must process salaries through the approved WPS or authorised channels and submit supporting payment records to the Ministry of Human Resources and Emiratisation (MoHRE).
Under the new framework, firms will be deemed compliant if they pay at least 85% of total wages due by the deadline, with legal deductions taken into account. Workers will still be considered paid if they receive this minimum threshold, without affecting their right to claim remaining dues.
The rules introduce a phased enforcement system for delays. From day two, companies will receive warnings; from day five, they will be barred from issuing new work permits; and from day 11, they may face fines, reclassification, and further penalties for repeat violations. From day 16, labour disputes may be automatically registered and work permit suspensions enforced. From day 21, authorities may issue executive orders, impose travel bans, or initiate asset seizures and legal action in severe or repeated cases.
Certain categories of workers and entities are exempt, including those involved in ongoing wage disputes, absconding cases, legal detention, approved unpaid leave, seafarers (with approval), overseas employees paid abroad, and specific sectors such as fishing boats, taxis, banks, and places of worship.
The Ministry said the updated system is aimed at strengthening compliance, improving transparency, and ensuring timely wage payments across the private sector in the UAE. (NewsWire)