UAE Salary Rule: New WPS Update Targets Faster Action On Delayed Wages

Recent updates to the UAE's Wage Protection System (WPS) do not introduce new substantive obligations on employers, but are aimed at improving existing procedures, governance and oversight mechanisms, authorities have clarified.

The clarification from the Ministry of Human Resources and Emiratisation (MoHRE) comes after new WPS rules, which took effect on June 1, made salaries due by the first day of each month for MoHRE-regulated private sector companies. Any salary paid after that date will be considered delayed under the updated system.

MoHRE said the decision standardises and formalises procedures related to wage payment monitoring, giving greater clarity on employers' obligations and enabling faster resolution of delayed salary cases. It said the system also allows early intervention to reduce any potential impact on employment relationships or business continuity.

The ministry said WPS follows a gradual and balanced approach in dealing with delayed wage payments. The process begins with electronic monitoring and notifications sent to employers, giving establishments time to address delays and rectify their status before administrative measures are applied "within approved timelines".

According to MoHRE, this approach is meant to encourage preventive compliance and resolve violations at an early stage, while reducing any potential impact on labour market stability or business continuity.

The ministry added that an establishment is considered compliant if it transfers at least 85 per cent of the total wages due within the specified timeframe. It said this reflects a flexible and balanced approach that takes into account the operational realities of businesses while ensuring the protection of workers' rights.

The 85 per cent threshold is a compliance measure used by authorities and does not mean employers can underpay workers. Employees remain entitled to claim any unpaid balance.

MoHRE also said some compliance monitoring measures are implemented through a risk-based approach, taking into account the nature of economic activities. The ministry said the focus is particularly on labour-intensive sectors with large-scale operations, where delayed wages can have a greater impact on labour relations and business continuity.

The ministry said this approach aims to support the stability of vital economic sectors and the sustainability of their operations, particularly those that rely on large numbers of workers, while safeguarding the interests of both employers and employees.

With the system processing more than Dh37 billion in wage payments every month, MoHRE said WPS remains a key pillar of labour market stability and business confidence in the UAE.

MENAFN04062026000049011007ID1111211033