UAE introduces stricter salary payment rules under new wage protection framework

At a glance

• The UAE Ministry of Human Resources and Emiratisation (MoHRE) has introduced Ministerial Resolution No. 340 of 2026, effective from 1 June 2026, establishing a stricter salary payment framework.
• All in-scope employers must pay employee salaries on the first day of each month, with no grace period and any delay automatically deemed non-compliant.
• Employers will be considered compliant if at least 85% of total wages are paid on time, and individual employees receive at least 85% of their salary, subject to lawful deductions.
• The resolution introduces a scaled enforcement regime, with penalties for late payment increasing in severity depending on the level and persistence of non-compliance.
• Employers must urgently review and update payroll processes to ensure compliance ahead of the 1 June 2026 implementation date.

The MoHRE has issued a new Ministerial Resolution (No. 340 of 2026) implementing a strict salary payment framework, effective 1 June 2026. 

This change will affect all onshore entities under the remit of the MoHRE and those in affected freezones that are subject to Wage Protection System (Jebel Ali Free Zone and the Dubai Multi Commodities Centre).

The new law requires that all salary payments are due on the first day of each month. Importantly, there is no longer a grace period for payment. Any salary payment made after the due date will be deemed delayed and non-compliant, triggering fines and other penalties (implemented on a scaled basis).

Companies will be deemed compliant where, no later than the due date, at least 85% of total wages are paid to employees. Importantly, an individual employee will be considered paid where they receive at least 85% of their entitled salary (increased from 80% previously), with any difference justified by lawful deductions or withholdings in accordance with the Labour Law (Federal Decree-Law No. (33) of 2021).

Next steps

All impacted entities must take immediate action to update their payroll systems to ensure that employee salaries are paid in line with the new law as of 1 June 2026 to avoid penalties and / or fines.

For further guidance or advice, please contact the DLA Piper Employment team.