If the salary is paid after the specified time, action will be taken as late payment.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
The United Arab Emirates (UAE) has announced that private sector companies will be required to pay their workers' salaries on the first day of each month. The rule will come into effect from June 1, 2026. According to the new rule issued by the Ministry of Human Resources and Emiratization, companies will have to pay the previous month's salary through the Salary Security System (WPS) or other government-approved systems. If the salary is paid after the specified time, action will be taken as late payment. According to the new rule, a company will be considered to be in compliance if it pays at least 85 percent of the total salary to the workers on time. Employees will not be considered to have not received their salary due to the remaining amount that has been legally deducted.
Companies that delay salaries will be subject to phased action. The company will be warned from the second day of the salary payment date. If the salary is not paid for even 5 days, the new work permit may be suspended.
If the salary is not paid for even 11 days, an additional fine will be imposed. Companies that repeatedly violate the rules will be removed from the list of low-risk businesses.
If wages are withheld for more than 16 days, a labor dispute will be filed on behalf of the workers. It is said that strict monitoring will be carried out especially in sectors such as construction, transportation, warehousing, security, cleaning and recruitment services.
Companies that do not pay wages for more than 21 days will be subject to stricter action. The ministry has stated that companies with 50 or more workers who repeatedly violate the rules may face government prosecution.
The government has also warned that if necessary, it will freeze the company's assets, impose travel bans on responsible officials and take legal action.
However, this rule will not apply to employees involved in labor disputes, workers on unpaid leave and some foreign workers who receive their salaries from outside the UAE.
