Today's Edition
MAYS IBRAHIM AND AMEINAH ALZEYOUDI (ABU DHABI)
Private sector companies in the UAE will be required to pay workers’ salaries on the first day of every month starting June 1 — a move that employees say will enhance financial security.
New rules issued by the Ministry of Human Resources and Emiratisation (MoHRE) introduce tougher penalties for late wage payments. Ministerial Resolution No. 0340 of 2026 stipulates that any salary paid after the first day of the month will be considered delayed.
Employees lauded the initiative, saying that timely salaries makes it easier for them to manage financial obligations.
“Receiving my pay on the first day of the month will allow me to settle bills on time. The same goes for my co-workers. We will be able to plan our budgets better, including expenses for our needs and wants,” Adnan Alajmi, who works at a hotel in Abu Dhabi, told Aletihad.
Alajmi added that the new MoHRE measure would significantly reduce instances of salaries being “delayed by weeks” compared with prevailing practices.
“I think this initiative is fantastic for people in the UAE, and I’m sure many others feel the same way,” he said.
Shaikha Aldhaheri, an employee of La Maison Engineering Consultancy, said getting paid on time also boosts people’s morale.
“People can meet their daily needs without delay, which reduces stress and provides financial stability,” she said.
Regular salary payments, she continued, also motivate workers to save more and better manage their finances.
Beyond personal circumstances, having fixed salary dates also improve trust between employers and employees, said Shaikha Omar, who works at ADCOOP Hypermarket.
“Stability and improved job satisfaction are also among the benefits,” she added.
Penalties Explained
According to the rules, salaries must be transferred through the Wage Protection System or other ministry-approved payment channels.
The resolution introduces a phased enforcement mechanism against non-compliant companies.
Employers that fail to pay salaries on time will first receive electronic alerts and notifications.
By the fifth day after salaries are due, authorities may suspend the issuance of new work permits for the company.
Repeat violations within six months could lead to administrative fines and the company being downgraded to the ministry’s third classification category from the eleventh day after the payment deadline.
After 16 days of non-payment, labour disputes may be automatically registered for affected workers, and work permit services could be suspended for firms employing 25 workers or more.
The toughest measures apply after 21 days, when authorities may impose travel bans on those responsible for the company, initiate precautionary seizure procedures against businesses and refer larger firms with repeat violations to the Public Prosecution.
The resolution states companies will still be considered compliant if they transfer at least 85% of total wages due to workers by the payment deadline, taking into account legally permitted deductions or withholdings.
The rules also outline exemptions from the Wage Protection System, including workers involved in wage-related court disputes, employees on unpaid leave, seafarers, some foreign workers paid outside the UAE, banks, financial institutions and places of worship.
The resolution was issued on May 12 and replaces Ministerial Resolution No. 598 of 2022 concerning the Wage Protection System.
