Pay employees' salaries on the first day of every month, UAE tells private firms

Private sector employees’ salaries need to be paid by the first day of every Gregorian month for the preceding month, effective June 1, 2026 in line with ministerial resolution no. 340 for 2026 issued by the Minister of Human Resources and Emiratisation to update the wage protection system. Ministerial resolution no. 598 for 2022 is hereby repealed.

Any payment after the given date will be considered a delay in paying wages and private firms will be obligated to transfer wages through the approved Wage Protection System or any alternative systems approved by the Ministry of Human Resources and Emiratisation (MoHRE) and to provide proof of regular payment transactions.

For a firm to be considered compliant with the new resolution, it must transfer no less than 85 per cent of the total worker wages due on time.

It also approved regulations for the rights of individual worker where a worker will be deemed to have received their wage if they receive no less than 85 per cent of the wage amount they are entitled to, provided that any deductions must be lawful and approved without prejudice to the worker’s right to claim any outstanding amounts due.

The resolution has excluded a number of cases from being included in the Wage Protection System.

These include workers who have labour claims or for whom an executive instrument has been issued against them; workers against whom absconding reports have been issued or are restricted by court orders; workers on unpaid leave; seamen on board ships and workers with temporary work permits for no more than three months.

They also include some categories in specific sectors, such as fishing boats and taxis owned by citizens, banks and financial institutions, places of worship and workers in foreign firms within the country who receive their wages outside of it.

The resolution incorporates a gradual escalation system for dealing with firms that do not comply with timely payment of wages, starting with electronic monitoring of firms from the due date, followed by notifications and alerts on the following day and suspension of new work permits on the 5th day coupled with an official warning.

In the event of repeated violations within six months, the administrative fines stipulated in Cabinet Resolution No. 21 for 2020 will be applicable and the firm will be transferred to the third most stringent category.

On the 11th day and in cases of broader violations, additional measures will be taken where a labour dispute will be registered and work permits will be suspended.

On the 16th day, stricter measures will be applicable to firms with 25 or more workers in specific sectors. These include attachment of firm and suspension of work permits.

On the 21st day, precautionary attachment will be applied, under which officials will be prevented from traveling and some cases will be referred to the Public Prosecution in the event of repeated violations or if there is an impact on the stability of the labour market.

According to the resolution, other entities may be authorized to carry out wage payment operations, provided that the MoHRE is notified accordingly and relevant data and agreements are submitted. The firm, however, will continue to assume full legal responsibility for any delay in wage payments within the specified periods.