New rule by UAE MOHRE: Private sector salaries must be paid on 1st of every month from June 1

Dubai: Workers in the UAE’s private sector should be paid by the first of each month, starting June 1, 2026, or their salaries will be considered delayed, according to a new ministerial resolution - Ministerial Resolution No. 0340 of 2026 concerning the Wage Protection System.

The resolution, which was issued on May 12, by the office of the Minister, designates the “first day of each Gregorian month” as the unified due date for the payment of workers’ wages in private sector establishments for the preceding month.

These payments need to be made through the Wage Protection System (WPS) or any other systems adopted by the Ministry for this purpose, and establishments are required to submit the necessary documentation and data to prove the payment of workers’ wages.

For an establishment to be considered ‘compliant’ with the new law, it must transfer no less than 85% of the total worker wages due to its workers by the due date.

A worker shall be deemed to have received their wage if they receive no less than 85% of the wage amount to which they are entitled, provided that any difference results from lawful deductions or withholdings made in accordance with applicable legislation, without prejudice to the worker’s right to claim any outstanding amounts due.

The resolution also lists out 11 cases of exclusion:

1. A worker who has a labour claim related to wages that has been referred to the competent court, or for which an executive instrument has been issued in accordance with the legislation in force, within the limits of the wage or the period subject of the claim.

2. A worker against whom an absconding report has been filed, throughout the validity period of such report.

3. A worker whose liberty is restricted in implementation of an order or judgment issued by a competent authority, throughout the period of such restriction during which work cannot be performed, provided that the Ministry is notified and supporting documents are submitted in accordance with the approved rules, without prejudice to any wages or entitlements that may have fallen due to the worker.

4. A worker who is on unpaid leave during the period of the approved leave, provided that the Ministry is notified and the required documents are submitted in accordance with the approved rules.

5. Seafarers working on ships, based on a request submitted by the establishment and in accordance with the Ministry’s decision.

6. Foreign workers employed by foreign establishments or their branches within the UAE, who receive their wages outside the UAE, based on a request submitted by the establishment and after the approval of the workers.

7. Workers holding mission work permits for a duration not exceeding three months.

8. Fishing boats owned by individual citizens.

9. Public taxis owned by individual citizens.

10. Banks and financial institutions.

11. Places of worship.

The Ministry will also issue a procedural guide setting out the procedures necessary for implementing the provisions of this Resolution.

The Ministry will electronically monitor establishment to ensure compliance and in case the payment is not confirmed by the due date, it will send notifications and alerts to the non-compliant establishment.

On the fifth day following the due date, the Ministry will suspend the issuance of new work permits for the establishment, with notification to the owner on the reason for suspension and a warning to pay.

On the 11th day following the due date, the Ministry will apply the administrative fines prescribed under Cabinet Resolution No. (21) of 2020 and reclassifying the establishment into the third category, as per Ministerial Resolution No. (209) of 2022.

On the 16th day following the due date, an individual or collective labour dispute for the affected workers will automatically be registered. This is applicable on organisations employing 25 workers or more, as per the Ministry’s applicable regulations, or on companies owned by the same employer where the total number of workers whose wages have not been paid is over 25, if the establishment falls under certain specific sectors.

On the 21st day after wages are due, the Ministry may issue an executive order to recover unpaid wages for workers in establishments with fewer than 50 employees, or begin collective labour dispute procedures for establishments with 50 or more workers.

The Ministry may also: