The UAE has introduced a new Wage Protection System (WPS) rule requiring private-sector salaries to be paid on the first day of each Gregorian month for the previous month’s work, starting June 1, 2026. Salaries paid after this date will be treated as delayed under the system, aimed at improving transparency and ensuring timely wage payments.
UAE WPS 2026: Key Rules and Penalties
Private companies will be considered compliant if at least 85% of employees’ wages are paid on time, allowing for legally permitted deductions.
Workers receiving at least 85% of their entitled salary will also be treated as paid, without losing the right to claim pending dues.
Companies delaying salary payments may face penalties and legal action.
Penalties for Delayed Salaries
From Day 2: Authorities will send alerts and notifications to non-compliant companies.
From Day 5: New work permits may be suspended until wages are paid.
From Day 11: Companies may face fines, be downgraded to the third category, and face stricter penalties for repeat violations within six months.
From Day 16: Authorities may automatically file labour disputes and suspend work permits for companies with 25 or more unpaid workers, especially in construction, transport, security, cleaning, and recruitment sectors.
From Day 21: Authorities may:
Issue executive orders for wage payments
Register labour disputes
Freeze company assets
Impose travel bans on responsible individuals
Repeat violations involving firms with over 50 employees may be referred to the Public Prosecution. Authorities can also act against any company if labour market stability is at risk.
WPS Exemptions
Exemptions apply to:
Workers involved in court wage disputes
Absconding workers
Workers under legal detention or approved unpaid leave
Seafarers
Overseas employees paid outside the UAE
Short-term mission workers
Excluded sectors include:
Fishing boats
Individually owned public taxis
Banks and financial institutions
Places of worship
