What Employers Need to Know About MOHRE’s New Wage Protection Framework

The Ministry of Human Resources and Emiratization (MOHRE) has introduced significant changes to salary payment compliance requirements for private sector companies in the UAE. Effective from 1 June 2026, salaries will officially become due on the first day of every month, strengthening wage protection measures and increasing accountability for employers.

The new framework, implemented under Ministerial Resolution No. 340 of 2026, aims to enhance labor market stability, improve employee protection, and ensure timely salary payments across the private sector.

Key Change: Fixed Salary Due Date

Under the updated regulations, employers are required to transfer salaries for the previous month through the Wage Protection System (WPS) or any other payment channels approved by MOHRE.

For example:

• May 2026 salaries must be paid on 1 June 2026
• Any payment made after the due date will be considered delayed

This change introduces a clear and consistent payroll deadline for all private sector establishments.

New Compliance Monitoring Timeline

MOHRE has introduced a phased enforcement mechanism to monitor salary compliance and address violations promptly.

From Day 2 of Delay

• Electronic monitoring begins automatically.
• Warning notices may be issued to employers.

From Day 5 of Delay

• Suspension of new work permit services may be imposed.
• Employers will be formally notified to settle outstanding salaries.

From Day 11 of Delay

• Additional administrative penalties may apply for repeated violations.
• Companies may be downgraded to Category 3 under the MOHRE establishment classification system.

From Day 16 of Delay

• Labor disputes may be registered on behalf of affected employees.
• Additional restrictions may be imposed on labor-related transactions.

From Day 21 of Delay

For establishments employing 50 workers or more, repeated violations may result in:

• Referral to Public Prosecution
• Enforcement orders for wage recovery
• Precautionary asset seizure measures
• Travel bans on responsible company officials
• Coordination with other government authorities for legal action

Salary Compliance Threshold

The new resolution introduces a clearer benchmark for compliance.

An establishment may still be considered compliant if:

• At least 85% of total wages are paid on time; and
• Any unpaid balance results from legally documented deductions.

Similarly, an employee will not be considered unpaid where at least 85% of their salary has been transferred and the remaining amount is supported by lawful documentation.

Who Is Exempt?

Certain categories are excluded from wage protection calculations, including:

• Employees involved in active labor disputes
• Employees reported absent from work
• Workers on unpaid leave
• Foreign workers paid outside the UAE by overseas entities

Additional exemptions apply to:

• Short-term work permits of less than three months
• Fishing boats
• Citizen-owned public taxis
• Banks
• Places of worship

What This Means for Employers

The new regulations significantly reduce flexibility around payroll delays. Businesses should ensure:

• Salaries are processed on or before the first day of each month
• WPS records are maintained accurately
• Payroll funding is planned in advance
• Labor compliance risks are monitored proactively

Failure to comply may result in operational disruptions, permit restrictions, higher labor costs, and regulatory scrutiny.

Conclusion

The UAE continues to strengthen its labor market framework by promoting transparency and employee protection. Employers are encouraged to review their payroll processes and ensure full compliance with the new requirements to avoid penalties and maintain good standing with MOHRE.