UAE to Require Private Sector Salaries by First Day of Each Month

Private sector salaries in the United Arab Emirates will be required to reach employees by the first day of each Gregorian month starting June 1st, 2026, under updated rules introduced through the country’s Wage Protection System. The changes were introduced by the Ministry of Human Resources and Emiratisation through Ministerial Resolution No. 0340 of 2026, issued on May 12th.
Under the updated system, companies registered with the ministry must pay workers their previous month’s wages by the first day of the following month, with any payment made after that date officially classified as delayed. The resolution states that companies will still be considered compliant if at least 85% of total wages owed to employees are paid. Workers are also not considered unpaid if they receive at least 85% of their salary entitlement and the remaining deduction is legally justified. The updated framework removes the previous 15-day grace period for delayed salary payments.
According to the resolution, penalties and administrative measures will now begin from the second day of non-payment and continue through the 21st day, with possible escalation including travel bans and referral to public prosecution for responsible parties at non-compliant companies. The resolution also outlines exemptions from the Wage Protection System for specific sectors and worker categories.
These include foreign workers employed by overseas companies or branches operating in the UAE who are paid abroad with ministry approval and employee consent, as well as banks, financial institutions, places of worship, fishing boats, and public taxis owned by Emirati citizens.
Additional exemptions apply to workers with absconding reports, employees involved in active wage disputes, workers on approved unpaid leave, employees unable to work due to court rulings or official orders, and certain seafarers operating on ships subject to ministry approval.