The United Arab Emirates has rolled out a revamped Wage Protection System (WPS) from 1 June, introducing tighter deadlines and stricter enforcement measures to ensure workers in the private sector receive their salaries on time.
Under the new framework issued by the Ministry of Human Resources and Emiratisation (MoHRE), the first day of every month will now serve as the official salary due date for wages earned during the previous month. Any payment made after this date will be treated as delayed.
The revised system applies to all private-sector companies registered with the Ministry. Employers must transfer salaries through approved wage- payment channels and provide the necessary records to verify that payments have been made in accordance with labour regulations.
A key feature of the new rules is the introduction of a compliance benchmark. Companies will be considered compliant if they pay at least 85 per cent of the total wages due to their workforce by the salary deadline. Similarly, an employee who has received at least 85 per cent of their salary will not be classified as unpaid, although they retain the right to recover any outstanding amount.
The Ministry has also established a six-stage enforcement mechanism for employers who fail to meet salary obligations. The process begins with electronic monitoring and warning notifications shortly after the payment deadline. Continued non-compliance can lead to suspension of new work permits, formal warnings, administrative fines and a downgrade in the company’s classification status for repeat violations.
If salaries remain unpaid beyond 16 days after the due date, labour disputes may be automatically registered on behalf of affected employees. More severe measures can follow after 21 days, including asset attachment, travel bans on responsible officials and referral to the Public Prosecution in serious or repeated cases.
The stricter regime particularly targets sectors employing large numbers of workers, such as construction, transport, security, cleaning services and recruitment agencies. Authorities said the changes are designed to strengthen wage protection, improve labour market stability and ensure that employees receive their earnings in a timely manner.
