The UAE has announced a new rule that sets a fixed deadline for paying salaries in the private sector. The rule will start from June 1, 2026 and is part of the country’s Wage Protection System.
The aim is to make salary payments more regular and ensure workers are paid on time.
Fixed salary payment date
Under the new system, all private companies must pay salaries on the first day of every month for the previous month’s work.
If payment is made after the first day, it will be considered a delay under the system.
Companies registered with the Ministry of Human Resources and Emiratisation must use the approved Wage Protection System or other approved payment channels.
Minimum 85% salary rule
The UAE has also set a rule that a company is considered compliant if it pays at least 85% of total salaries on time.
This allows small legal deductions, but workers still have the right to claim any remaining unpaid amount.
Action against late-paying companies
If companies delay salaries, authorities will take step-by-step action:
- Day 2: Warning notices are sent
- Day 5: No new work permits are issued to the company
- Day 11: Administrative fines are applied and the company may be downgraded
- Day 16: Labour complaints are automatically registered, and work permit services are suspended
- Day 21: Legal orders, possible travel bans, and stronger enforcement actions may be taken
Companies with 25 or more affected workers will face stricter monitoring. In serious cases, companies with repeated violations may be referred to the Public Prosecution.
Exemptions from the system
Some workers and cases are not covered by the Wage Protection System, including:
- Workers involved in ongoing court salary disputes
- Employees reported as absconding
- Workers on unpaid leave (if properly reported)
- Seafarers and certain overseas workers
- Short-term mission workers
- Some sectors like fishing boats, public taxis, banks, and places of worship
Goal of the new rule
The new regulation is designed to improve transparency and ensure workers receive salaries on time. It strengthens enforcement and makes the salary system more consistent across the UAE private sector.
The government says this will help protect workers’ rights and improve compliance among employers.
