The UAE Ministry of Human Resources and Emiratisation (MOHRE) has issued a new rule requiring all private-sector employers to pay employee salaries on the first day of every month, taking effect on June 1, 2026 (per Khaleej Times). The directive, formalised in Ministerial Resolution No. 340 of 2026, tightens the country's Wage Protection System (WPS) and aims to standardise payday across the labour market.
What the rule requires
Under the resolution, salaries for the previous month must be transferred through the WPS or another payment system authorised by the ministry by the first of the following month (per Gulf News). Any payment made after that date is classified as delayed and triggers the ministry's escalation framework.
A company is treated as compliant when it has transferred at least 85 per cent of total wages due to its workers on time, according to The National. The 15-per-cent margin is intended to absorb edge cases such as disputed payments and short-notice resignations, but it does not exempt employers from paying the remaining balance promptly.
Penalties for late payment
MOHRE has outlined an escalating penalty ladder. From the second day after wages become due, employers receive electronic monitoring notifications and formal warnings (per Gulf Business). From the fifth day of delay, the ministry can suspend the issuance of new work permits to the company, restricting recruitment until salaries are paid. Persistent breaches can lead to further administrative measures, including referrals that may result in travel bans against responsible owners.
Who is excluded
The decision excludes several categories from wage-protection calculations, including workers involved in active labour disputes, employees reported absent from work, those on unpaid leave, and foreign workers paid outside the UAE by overseas entities (per Khaleej Times). The resolution also exempts short-term work permits of less than three months, fishing boats, citizen-owned public taxis, banks, and places of worship.
Why it matters
The reform is the most significant change to private-sector payroll discipline since the WPS was introduced. By fixing a single payday for the vast majority of the workforce, the ministry expects to reduce wage complaints, improve household cash-flow planning for the UAE's large expatriate workforce, and give regulators a clearer monthly compliance signal across more than 400,000 registered companies. Employers have until the end of May 2026 to align payroll cycles, banking instructions, and HR systems with the new deadline.
