UAE sets unified salary deadline for private sector

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ABU DHABI: The UAE Ministry of Human Resources and Emiratisation has announced a major regulatory overhaul, establishing the first day of each Gregorian month as the unified salary deadline for all private-sector workers, starting June 1, 2026. Introduced under Ministerial Resolution No. 340 of 2026, this landmark update completely eliminates the previous 15-day payroll grace period.

Under the revised Wage Protection System, any transactions completed after the first of the month will immediately trigger automatic electronic alerts for non-compliance. Companies are deemed compliant if they pay at least 85 percent of the total wages due on time, after accounting for lawful deductions.

Failing to meet this threshold invites rapid penalties, beginning with work permit suspensions on the fifth day of delay, followed by heavy administrative fines and blacklisting by the eleventh day. This sweeping measure aims to dramatically increase transparency and firmly protect the financial stability of the workforce across the emirates.