Dubai: The new Wage Protection System came into effect today (June 1, 2026), after the Ministry of Human Resources and Emiratisation (MOHRE) adopted the first of each Gregorian month as a unified date for the entitlement of wages for workers in private sector establishments for the previous month, pursuant to Ministerial Resolution No. 340 of 2026. Any delay in payment after this date is considered a violation that requires taking action against the establishment.
Payment process
The system requires all private sector establishments registered with the Ministry to pay the salaries of workers through the Wage Protection System or any other systems adopted by the Ministry, while providing documents and data that prove the completion of the payment process. The decision also specified clear indicators to measure compliance, as the establishment is considered compliant if it transfers no less than 85% of the total wages due to the workers on the specified date.
The ministry adopted a gradual monitoring mechanism to deal with establishments that are late in paying wages, starting with sending electronic alerts and notifications from the second day after the due date, then stopping the issuance of new work permits from the fifth day, while notifying the employer of the need to address the violation.
The penalties are subsequently progressively increased to include administrative fines and transferring the establishment to the third category if the violation is repeated within six months, starting from the eleventh day from the date of entitlement, with establishments being given a regulatory period of up to ten days before the penalties are applied.
Tightening procedures
If the delay continues until the sixteenth day, labour disputes will be filed for the affected workers, in addition to suspending the issuance of work permits for the targeted establishments, especially establishments that include 25 or more workers or that operate in the construction, transportation, storage, security, cleaning, employment agencies and recruitment offices for domestic workers.
If the delay exceeds 21 days, the procedures will be tightened to include referring the violating establishments to the Public Prosecution if they employ 50 workers or more and the violation is repeated, in addition to issuing executive bonds to collect wages, taking precautionary seizure measures on the establishment and imposing a travel ban on the person responsible for it, while addressing the competent authorities to take the necessary legal measures.
Authorisation and payment
The decision excluded a number of categories and cases from being included in the Wage Protection System, including workers who have pending labor claims before the courts, or who have a report of absence from work registered against them, or who are on unpaid leave. The exclusions also included foreign workers who receive their salaries outside the country at foreign establishments, and workers with temporary work permits not exceeding three months, in addition to fishing boats and public taxis owned by citizens, as well as banks and places of worship.
The decision also allowed establishments to authorize other entities to pay workers’ salaries, provided that the ministry is notified of the authorized entity’s details and the scope of its powers, while the establishment remains fully legally responsible for paying wages on the specified dates.