The UAE Ministry of Human Resources and Emiratisation (MoHRE) has introduced a new Wage Protection System (WPS) that establishes the first day of each calendar month as the unified salary due date for private sector workers, with any payment made after this deadline classified as delayed.

The system, implemented under Ministerial Resolution No. 340 of 2026, took effect on Monday, 1 June 2026, and applies to all MoHRE-registered private sector establishments.

Under the revised framework, employers must transfer wages through the Wage Protection System or other approved payment platforms, and submit documentation verifying salary payments in line with ministry procedures.

MoHRE said establishments will be considered compliant if at least 85% of total wages are paid by the due date, while employees will not be classified as unpaid if they receive at least 85% of their entitled salary, without affecting their right to claim the remaining balance.

The new system also introduces a staged enforcement mechanism for delayed payments.

From the second day after the due date, non-compliant companies will receive electronic notifications and reminders.

By the fifth day, a formal warning will be issued, followed by administrative penalties from the 11th day, including fines and possible downgrade in classification for repeat violations.

From the due date onward, companies may also face electronic monitoring, suspension of new work permits, and formal employer notifications.

If wages remain unpaid by the 16th day, MoHRE will register labour disputes on behalf of affected employees in eligible cases, including larger establishments and specific high-risk sectors such as construction, transport, security, cleaning and recruitment services.

By the 21st day of non-payment, further enforcement measures may apply, including asset attachment, travel bans on responsible officials, and referral to the Public Prosecution in serious or repeated violations.

Smaller companies may face executive wage recovery actions, while larger firms with 50 or more workers could be subject to collective dispute procedures and legal escalation.

The system also outlines 11 categories exempt from wage compliance calculations, including employees involved in ongoing wage disputes, those on approved unpaid leave, seafarers, certain foreign employment arrangements, and specific institutional categories such as banks and places of worship.

Authorities said the reforms aim to strengthen labour market stability and ensure timely salary payments through enhanced electronic monitoring and compliance tracking.

Under UAE labour law, employers are required to pay wages monthly through the WPS, which is jointly administered by the Central Bank of the UAE and MoHRE, allowing authorities to track payments and enforce compliance.

MoHRE reiterated that all workers are entitled to receive their full wages on time, and employees facing delays or non-payment can file complaints through official ministry channels.