Companies registered with the Mohre are obligated to pay workers’ wages through the approved Wage Protection System or any other systems adopted by the Ministry
The UAE has introduced a new Wage Protection System (WPS) rule standardising private-sector salary payments, requiring wages to be paid on the first day of each Gregorian month for the previous month’s work. Payments made after this date will be considered delayed under the system starting June 1, 2026.
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.
The decision, issued on May 12 by the Minister of Human Resources and Emiratisation (Mohre), aimed to strengthen compliance and ensure timely wage payments across private-sector establishments. The updated rule is expected to enhance transparency in wage payments and reinforce protections for workers by establishing a clear, unified salary deadline for private sector employers in the UAE.
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.
Action against companies delaying wage payment
The new decision outlines a series of escalating measures for companies that fail to pay salaries on time under the Wage Protection System.
If wages are not paid by the due date, authorities will begin taking action from the second day. This includes sending notifications and alerts to non-compliant establishments that are not paying wages.
If the delay continues, stricter measures will follow; from the fifth day after the deadline, the company will not be granted new work permits. The employer will be notified of the suspension, along with the reasons behind it, and warned again to settle outstanding wages.
Administrative fines, no new work permit
If an employer fails to pay wages by the 11th day after the due date, more serious action will be taken. The company will face administrative fines as specified in Cabinet Resolution No 21 of 2020. The company will be reclassified to the third category, and repeat violations within a six-month period will result in further action.
From the 16th day after the deadline, for non-compliant companies, authorities will automatically register an individual or collective labour dispute on behalf of affected workers, depending on the number of cases. At the same time, the company’s issuance of new work permits will be suspended.
These measures apply to employers with 25 or more unpaid workers. They also extend to businesses owned by the same employer if the total number of affected workers across those entities reaches 25. The rule especially falls within the sectors of construction, transport and storage, security services, cleaning services, recruitment agencies, or domestic worker recruitment offices.
Executive order, travel ban
From the 21st day after the salary date deadline, authorities will issue an executive order to ensure wages are paid in companies with fewer than 50 workers, or initiate collective labour dispute registration procedures if the number of workers is 50 or more. At the same time, precautionary seizure procedures can be initiated against the company, and a travel ban may be imposed on the person responsible for the establishment.
In cases of repeated violations over two consecutive months, firms with more than 50 employees can be referred to the Public Prosecution, with authorities sharing all relevant documents and data for legal action. This also applies to businesses owned by the same employer if unpaid workers across entities reach 50, particularly in sectors such as construction, transport, security, cleaning and recruitment.
Authorities may also intervene regardless of the size of the establishment if there are risks to the UAE labour market stability, underscoring the UAE’s intensified push to enforce timely wage payments.
Who is excluded from Wage Protection System
The resolution also outlines several cases where workers and entities will be exempt from the Wage Protection System (WPS).
A worker already involved in wage-related disputes that have already been referred to court, or where an executive order has been issued, will be excluded for the period and amount under litigation. Workers reported as absconding will also be exempt during the validity of the report.
Exemptions further apply to workers who are unable to work due to legal detention or court orders, as well as those on approved unpaid leave, provided the Ministry is notified and the required documents are submitted in accordance with the approved rules.
Certain categories of workers are also outside the scope of the WPS, including seafarers (subject to ministry approval), foreign employees of overseas firms who are paid outside the UAE, and workers on short-term mission permits of up to three months.
In addition, some sectors and activities are excluded entirely, such as fishing boats and public taxis owned by individuals, as well as banks, financial institutions, and places of worship.
The exemptions are intended to account for special employment situations while maintaining the integrity of the wage protection framework.
