UAE sets unified salary deadline for private-sector employers from June 1

ABU DHABI: The United Arab Emirates will begin enforcing a standard deadline for private-sector salary payments from June 1 under an updated rule introduced through the country’s Wage Protection System, according to a report carried by Khaleej Times and cited by Dawn.

The new requirement says wages for the previous month must be paid on the first day of each month, and any payment made after that date will be treated as delayed. The decision was issued on May 12 after a ministerial resolution earlier this month by the UAE minister of human resources and emiratisation.

The measure is aimed at improving compliance and ensuring that wages are paid on time across private-sector establishments. Under the revised framework, all companies registered with the ministry must disburse salaries through the approved wage system or other authorised payment channels. Employers are also required to submit documents and data confirming that salaries have been paid.

Compliance threshold and deductions

The UAE has also defined what will count as compliance under the Wage Protection System and what action will follow in cases of delay. A company will be regarded as compliant if it pays at least 85 per cent of the total wages due to workers by the deadline.

Khaleej Times said this benchmark accounts for situations in which part of a salary may be deducted or withheld under the law. A worker will still be considered to have received their salary if at least 85pc of the total entitled wage has been paid, provided the remaining amount relates to legally permitted deductions or withholdings.

Escalating action for delayed payments

Authorities will begin issuing notifications and alerts to establishments that fail to pay on time from the second day of non-payment.

From the fifth day after the deadline, the company will not be issued new work permits. The employer will be informed of the suspension, the reasons for it, and will receive a second warning.

Khaleej Times said that if wages remain unpaid by the 11th day after the due date, the company will face administrative fines under Cabinet Resolution No. 21 of 2020. It will also be moved into the third category, while repeated violations within a six-month period will trigger further action.

From the 16th day after the deadline, authorities will automatically register an individual or collective labour dispute on behalf of affected workers. The company’s ability to obtain new work permits will also remain suspended. These steps apply to employers with 25 or more unpaid workers, as well as to other businesses owned by the same employer if the total number of affected workers reaches 25.

From the 21st day after the deadline, authorities will issue an executive order to secure payment of wages, or begin collective labour dispute registration procedures where the number of affected workers is 50 or more. Precautionary seizure procedures may also be launched against the company, and a travel ban may be imposed on the person responsible for the establishment.

Khaleej Times further reported that in cases of repeated violations over two consecutive months, companies employing more than 50 workers may be referred to the Public Prosecution, with all relevant documents and data shared for legal proceedings. Authorities may intervene regardless of the size of the establishment if there are risks to labour market stability in the UAE.

Exemptions under the rule

The regulation excludes certain categories of workers and situations, including employees who have absconded, those unable to work for legal reasons, and workers on approved unpaid leave. It also excludes categories outside the scope of the Wage Protection System, such as foreign employees of overseas firms who are paid outside the UAE.

Certain sectors, including banks and places of worship, are also exempt from the rule.

The updated framework is intended to improve transparency in wage payments and strengthen worker protections by setting a single salary deadline for all private-sector employers in the UAE.