UAE private companies must pay salaries on 1st of every month from June 1, 2026 or face legal action

Starting June 1, 2026, private companies in the United Arab Emirates (UAE) must pay their employees salaries on the first of every month or risk facing penalties. This was announced by the Ministry of Human Resources and Emiratisation (MoHRE) in a notification on May 12, 2026. In a series of post on X in both Arabic and English MoHRE has highlighted the key features of the new law and what legal action private companies can face if they fail to follow it.

According to resolution (No. (0340) of 2026), MoHRE has established the first day of each Gregorian month as the official payday for salaries through the Wage Protection System or any other systems adopted by the ministry. The authority also clarified that a wage payment is considered successful if the employee receives at least 85 per cent of the total wages, assuming the difference is due to lawful deductions.

Additionally, MoHRE has removed the 15-day grace period for salary payments under this new rule. At first notifications will be sent to defaulting firms from the second day of the month, and employers will not be allowed to issue new work permits if payment isn't made until the 5th.


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If the delay continues for the first 11 days of the month, firms will face fines and may be blacklisted, while employers default from 16th of the month till 21st, will face additional legal action and travel bans.


According to a report by Khaleej Times, one of UAE’s oldest newspapers, under the new regulation, all companies registered with the ministry must distribute wages through the approved Wage Protection System or other payment channels authorised by the ministry. Employers must also provide documents and data confirming salary payments, following the ministry’s rules and procedures.

The Khaleej Times report mentioned that some workers aren’t covered by this wage protection system.

For example, if a worker is already in a wage dispute that has gone to court, or if there’s an executive order in place, they will be excluded for the duration and amount under litigation. Workers reported as absconding will also be exempt during the validity of the report.

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The report also said that exemptions also apply to workers who are unable to work due to legal detention or court orders, as well as those on approved unpaid leave, provided the Ministry is notified and the required documents are submitted in accordance with the approved rules.

Further, some categories of workers are outside the scope of the wage protection system, including seafarers (subject to ministry approval), foreign employees of overseas firms who are paid outside the UAE, and workers on short-term mission permits of up to three months.

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In addition, some sectors and activities are excluded entirely, such as fishing boats and public taxis owned by individuals, as well as banks, financial institutions, and places of worship.