The UAE has introduced a new rule under the Wage Protection System (WPS) that standardises the deadline for paying private-sector salaries to regulate wage payments across the country.
Under the updated rule, salaries must be paid on the first day of each Gregorian month for the previous month. Payments made after this date will be considered delayed under the system starting June 1, 2026.
The decision issued on May 12 follows a ministerial resolution issued earlier this month by the Minister of Human Resources and Emiratisation (Mohre), aimed at strengthening compliance and ensuring timely wage payments across private sector establishments.
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Under the new regulation, all companies registered with the ministry must distribute wages through the approved Wage Protection System or other payment channels authorised by the ministry. Employers must also provide documents and data confirming salary payments, following the ministry’s rules and procedures.
85% wage payment compliance threshold
The UAE has outlined clear thresholds to determine whether companies are complying with salary payments under the Wage Protection System (WPS), and has also set out the consequences for delays.
Under the Ministerial Resolution No. (0340) of 2026 Concerning the Wage Protection System, a private company in the UAE will be considered compliant if it pays at least 85 per cent of the total wages due to its employees by the set deadline. This threshold takes into account cases where part of the salary may be legally deducted or withheld, as permitted under the country’s labour law.
A worker will still be considered to have received their salary if they are paid at least 85 per cent of their total entitled wage. This applies as long as the remaining amount is due to legally permitted deductions or withholdings under existing laws. However, this does not affect the worker’s right to claim any unpaid amounts.
The regulation also makes clear that action will be taken against companies that fail to pay wages on time. Authorities will enforce penalties and measures in line with existing laws and procedures, as outlined in the resolution, with oversight from judicial and regulatory bodies.
Source: Khaleej Times