Abu Dhabi: The Ministry of Human Resources and Emiratisation has issued a new rule requiring private sector companies to pay employee salaries on the first day of every month starting June 1, 2026. Under Ministerial Resolution No. 340 of 2026, salaries must be transferred through the approved Wage Protection System, and any payment after the due date will be considered delayed.

A company is considered compliant if it transfers at least 85 percent of total wages on time. The ministry outlined escalating penalties for late payments, including suspension of new work permits from the fifth day, administrative fines for repeat violations, and from the 21st day, asset seizures and travel bans on responsible officials.

The decision excludes workers involved in labour disputes, those on unpaid leave, and foreign workers paid outside the UAE. Short-term work permits under three months, fishing boats, public taxis, banks, and places of worship are also exempt.

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