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.
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.
