New salary rule in UAE: Unified wage deadline set for private sector employers
Under the updated framework, all establishments registered with MOHRE must ensure wages are paid on the designated due date via the WPS
18 May, 2026
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The Ministry of Human Resources and Emiratisation (MOHRE) in the UAE has introduced a new rule requiring private sector companies to pay employee salaries by the first day of every month starting June 1, 2026, as part of broader efforts to strengthen wage protection and improve labour compliance across the country.
According to media reports, the rule has been issued under Ministerial Resolution No. 340 of 2026. It stipulates that salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or other payment systems authorised by the ministry. Any salary payment made after the due date will be classified as delayed.
Clear timeline for wage payments
Under the updated framework, all establishments registered with MOHRE must ensure wages are paid on the designated due date via the WPS. The employee’s salary becomes due from the first day of the month following the end of the wage period specified in the employment contract.
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If the employment contract does not define a specific payment cycle, employers are required to pay wages at least once every month.
The regulation also clarifies that an employer will be considered late in paying wages if the payment is not made within the first 15 days after the due date, unless a shorter deadline is stated in the employment contract.
Payment system and compliance
The Wage Protection System (WPS) requires salaries of private sector employees to be transferred through banks, exchange houses, or financial institutions approved by the Central Bank of the UAE. The system was developed to enable MOHRE to maintain a comprehensive database of wage payments and monitor employer compliance with timely and full salary disbursement.
Salaries may be paid in UAE dirhams, or in another currency if both employer and employee agree within the employment contract.
While there is no legally stipulated minimum salary under UAE Labour Law, the legislation includes general provisions requiring that wages be sufficient to meet employees’ basic needs.
The ministry has also outlined penalties for companies that fail to pay salaries on time or do not comply with wage payment regulations. These measures are intended to reinforce timely payment practices and ensure stronger protection for workers across the private sector. However, specific penalty details were not included in the report.





















