The UAE Ministry of Human Resources and Emiratisation has issued a new ministerial resolution regarding the Wage Protection System (WPS) in the private sector, effective from 1 June 2026. The resolution introduces clearer controls for salary payment deadlines and stricter measures against non-compliant establishments.
Key Amendments and Main Points:
1. Unified Salary Payment Date
• The first day of each calendar month has been designated as the official due date for employees’ wages for the previous month.
• Any delay beyond this date will be considered a delay in wage payment.
2. Mandatory Payment Through the Wage Protection System (WPS)
• All private sector establishments registered with the Ministry are required to pay salaries through the Wage Protection System (WPS) or any other system approved by the Ministry.
• Establishments must provide documents proving salary payments upon request.
3. When Is an Establishment Considered Compliant?
• An establishment is considered compliant if it transfers at least 85% of the total due wages on the due date.
• An employee will not be considered unpaid if they receive 85% of their salary, provided the remaining amount is due to legally approved deductions.
4. Escalating Measures Against Establishments Delaying Salary Payments
Actions are applied progressively depending on the delay period:
• From Day 2: Warnings and notifications are sent to the establishment.
• Day 5: Suspension of the issuance of new work permits.
• Day 11: If the violation is repeated within 6 months:
Administrative fines may be imposed.
The establishment may be downgraded to the third category.
• Day 16: For establishments with 25 or more workers in specific sectors:
Work permit services may be suspended.
Labour disputes may be automatically registered.
• Day 21: For large establishments or repeat offenders:
Referral to the Public Prosecution.
Issuance of enforceable payment orders for wages.
Precautionary seizure of the establishment.
Travel ban on the responsible person in certain cases.
5. Cases Exempted from Violation Calculations
Certain categories are excluded from WPS violations, including:
Employees with wage disputes before the courts.
Employees reported for work abandonment.
Employees detained or restricted under a judicial order.
Employees on unpaid leave.
Seafarers and certain foreign workers paid outside the UAE.
• Temporary work permits (up to 3 months).
• Banks, financial institutions, places of worship, and certain specified activities.
6. Delegation of Salary Payments
• Establishments may authorize a third party to process salary payments.
• However, legal responsibility remains with the establishment if salaries are not paid on time.
7. Cancellation of the Previous Regulation
• Ministerial Resolution No. (598) of 2022 has been repealed and replaced by the new system.
Effective Date:
The resolution will officially come into force on 1 June 2026.