UAE Updates Wage Protection System with Mandatory June 2026 Compliance

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has issued Ministerial Resolution No. 705 of 2024, introducing stricter regulations for the Wage Protection System (WPS). The updated framework, which becomes fully effective in June 2026, mandates precise timelines for salary disbursements and establishes new administrative penalties for non-compliant private sector entities. Stricter Salary Payment Deadlines Under the new resolution, employers are required to transfer employee wages through the WPS starting from the first day of the month following the due date. A salary is officially classified as "late" if it is not paid within 15 days of the due date, unless a specific alternative period is defined in the employment contract. For companies employing over 50 workers, the Ministry will monitor compliance through automated digital systems to ensure full salary transfers. Administrative Penalties and Work Permit Suspensions The resolution outlines a tiered enforcement mechanism for companies that fail to meet payment deadlines. Initial non-compliance will trigger electronic notifications and warnings. If the delay exceeds specific thresholds—typically 30 to 60 days…