UAE Introduces New Salary Payment Rules for Private Sector Employees

The United Arab Emirates has introduced new regulations under the Wage Protection System (WPS) to ensure timely salary payments for private sector employees across the country.

According to the Ministry of Human Resources and Emiratisation (MOHRE), all private companies will now be required to pay salaries for the previous month by the first day of each new month. Any payment made after this deadline will be considered delayed. The new rules will officially come into effect from June 1, 2026.

The ministry stated that all registered companies must process salaries through the approved Wage Protection System or other ministry-authorized channels. Employers will also be required to provide salary payment records and proof of transactions when requested.

Under the new monitoring criteria, companies that pay at least 85 percent of employee salaries on time will be considered compliant with the regulations. However, employees will still retain the legal right to claim their full outstanding wages.

Authorities warned that companies failing to comply with the rules may face fines and administrative penalties under existing labor laws.

Officials say the main objective of the system is to protect workers’ rights, ensure timely wage payments, and improve transparency in the private sector.