The Ministry of Human Resources and Emiratisation (MoHRE) has begun implementing a new Wage Protection System (WPS) from Monday, 1 June 2026, introducing a unified salary due date for all private sector establishments. Under the new rule, the first day of each calendar month is now the mandatory deadline for paying wages for the previous month, with any payment made after this date considered delayed.
The system, introduced under Ministerial Resolution No. 340 of 2026, requires all registered establishments to transfer salaries through the WPS or other Ministry-approved payment channels. Employers must also submit documentation verifying wage payments in line with MoHRE procedures.
Under the compliance framework, companies will be considered compliant if at least 85% of total wages are paid by the due date. Employees will also not be classified as unpaid if they receive at least 85% of their salary, while retaining the right to claim outstanding amounts.
MoHRE has introduced a phased enforcement system for late payments. From the second day of delay, electronic monitoring, alerts and reminders will begin. By the fifth day, formal warnings will be issued, followed by administrative penalties from the 11th day, including fines and potential classification downgrade for repeat violations.
If salaries remain unpaid after 16 days, MoHRE will register labour disputes on behalf of affected workers. On the 21st day, further measures may include asset attachment, travel bans on responsible officials, and referral to the Public Prosecution, particularly for larger establishments or repeated violations.
The system applies more strictly to firms with 25 or more employees in key sectors such as construction, transport, security, cleaning, recruitment, and domestic worker services, with additional escalation for companies employing 50 or more workers.
Certain categories are excluded from WPS compliance calculations, including employees with active wage disputes in court, those on approved unpaid leave, seafarers, mission permit holders, and specific exempt entities such as fishing boats, public taxis owned by UAE nationals, banks, financial institutions, and places of worship.
MoHRE said the new system strengthens wage protection and ensures timely salary payments across the private sector. Workers remain entitled to receive full wages on time, and complaints over delayed payments can be filed through official ministry channels.
Under UAE labour law, wages must be paid monthly via the WPS, which is operated in coordination with the Central Bank of the UAE and authorised financial institutions, ensuring electronic monitoring and compliance tracking of salary payments.