UAE Sets Out Measures for Employers Delaying Salary Payments
The approach places greater regulatory attention on labor-intensive activities, particularly large-scale operations, as the Wage Protection System handles more than Dh37 billion in wage payments each month.
The UAE has tightened the monitoring of salary payments, with employers facing escalating action when wages are not paid within the required timeframe under the updated Wage Protection System (WPS).
The Ministry of Human Resources and Emiratisation (MoHRE) said employers will first receive electronic notifications and alerts when wage payments are delayed, giving companies an opportunity to correct the situation before administrative measures are imposed. The ministry said the latest decision does not create new substantive obligations but standardises procedures for monitoring and addressing delayed payments.
The measures form part of the WPS framework that took effect on June 1, under which salaries for the previous month are due on the first day of the following Gregorian month for companies registered with MoHRE.
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Under the enforcement timetable, companies with unpaid wages can begin receiving alerts from the second day after the payment deadline. If the delay continues, restrictions on issuing new work permits can follow, while further non-compliance can lead to administrative fines, a lower company classification and the registration of labour disputes for affected workers.
For more serious or prolonged cases, the measures can extend to executive orders to secure salary payments, precautionary asset-seizure procedures and travel restrictions involving those responsible for the establishment. Repeated violations can also result in referral to the Public Prosecution in cases covered by the rules.
MoHRE said the system uses a risk-based approach, with particular attention to labour-intensive sectors and large-scale operations. Construction, transportation, security, and cleaning are among the sectors specifically identified by the ministry.
The ministry considers an establishment compliant when at least 85% of total wages due are transferred within the specified timeframe. The WPS currently processes more than Dh37 billion in wage payments each month, according to MoHRE.
The stricter monitoring comes as salary-payment compliance remains one of the areas being tracked by UAE labour authorities. In the first half of 2026, failure to pay salaries through the WPS was among the labour violations recorded during inspections, according to MoHRE data reported in September.
For businesses, the changes increase the importance of keeping payroll payments aligned with WPS deadlines, particularly for employers with large workforces. For workers, the system provides an increasingly automated route for delayed-payment cases to enter the ministry’s enforcement process rather than depending solely on individual complaints.
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