UAE Tightens Wage Protection System Rules From June 2026

On May 12, 2026, the Ministry of Human Resources and Emiratisation (MOHRE) published Ministerial Resolution No. 0340 of 2026, which updates the rules for the Wage Protection System (WPS) for private sector employees. The new rules, which aim to strengthen compliance and transparency among private sector employers, take effect on June 1, 2026.

Under the new rules, employee salaries are due on the first day of each month, while companies are granted a regulatory grace period of up to 10 days before administrative penalties are applied. Previously, wages could be paid up until the fifteenth day of the month.

Employers will be considered compliant if at least 85% of wages are paid on time (previously 80%).

From the second day of the month, notifications and warnings will be issued to companies that have failed to pay salaries on time.  On the fifth day of delay, noncompliant employers may be suspended from obtaining new work permits.  On the eleventh day, administrative measures may be applied and, on day 16, permit suspensions may be extended and labor disputes automatically triggered. By day 21, further escalations may include travel bans and public prosecution.

All wage payments must be made via WPS, and employers must submit proof of payment to the Ministry.

Employers are advised to review and update their salary payment systems and to communicate these changes to their employees.

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