The Ministry of Human Resources and Emiratisation has unveiled strict new rules requiring private sector companies to pay employee salaries on the first day of every month starting June 1, 2026.

The move, introduced under Ministerial Resolution No. 340 of 2026, is part of a wider push to strengthen wage protection and improve labour compliance across the UAE.

Salaries must be paid on time

Under the new regulation:

• Salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or another authorised payment platform.
• Any payment made after the due date will officially be considered delayed.

The ministry also stated that companies must provide proof and documentation confirming salary transfers.

What happens if companies delay salaries?

Authorities outlined escalating penalties that become more severe the longer salaries remain unpaid.

From Day 2:

• Companies enter electronic monitoring
• Warning notices are issued

From Day 5:

• Suspension of new work permits may begin
• Employers are formally notified to clear the unpaid wages

From Day 11:

• Administrative fines apply for repeat violations
• Companies may be downgraded to the third business classification category

From Day 16:

• Labour disputes may be automatically registered for workers
• More permit restrictions could follow, especially for larger companies and sectors such as:
  • Construction
  • Transport
  • Cleaning
  • Security
  • Recruitment services

From Day 21:

For companies employing 50 or more workers, repeated violations could lead to:

• Referral to public prosecutors
• Asset seizure orders
• Travel bans on company officials

When is a company still considered compliant?

The ministry clarified that businesses remain compliant if they transfer:

• At least 85% of total wages are on time

Employees also won’t be classified as unpaid if missing amounts are linked to legally documented deductions.

Some sectors exempt

The decision excludes:

• Short-term permits under three months
• Fishing boats
• Citizen-owned taxis
• Banks
• Places of worship

The UAE has long pushed for stronger worker protections, but this marks one of the toughest enforcement frameworks yet for salary delays.

The Ministry of Human Resources and Emiratisation (MoHRE) has confirmed that June 30, 2026, is the final deadline for private sector companies with 50 or more employees to meet Emiratisation targets for the first half of the year.

Under current rules, companies must achieve a 1% increase in Emiratisation for skilled jobs by the end of June, with another 1% increase required in the second half of 2026.

Starting July 1, firms that fail to meet the required targets will face financial penalties.

The ministry urged companies not to wait until the last minute and encouraged employers to use the Nafis platform to connect with Emirati jobseekers across multiple sectors and specialisations.

Officials said more than 50 days remain before the deadline, giving companies time to speed up hiring plans and improve compliance.

Fake Emiratisation practices

The ministry also warned against fake Emiratisation practices, saying advanced monitoring systems powered by artificial intelligence are being used to detect violations and attempts to manipulate targets.

Companies found violating Emiratisation regulations could face penalties, downgrading of their classification status and legal action.

Compliant companies may benefit from incentives under the Nafis programme, including discounts on ministry service fees and priority within government procurement systems.

Workplace safety is getting a stronger push in Sharjah, as Sharjah Police has introduced a specialised team to help companies improve compliance with occupational health and safety standards.

The initiative, led by the General Directorate of Prevention and Safety, focuses on identifying unregistered companies, registering them within the system, and providing hands-on training and technical support under the Sharjah Occupational Safety and Health System.

For businesses and workers across the emirate, many of them part of the UAE’s diverse expat community, the move aims to create safer, more sustainable work environments while reducing workplace incidents.

Rather than waiting for issues to arise, the new team reflects a shift towards a more proactive prevention model, according to Brigadier Dr Ahmed Saeed Al Naour. The approach focuses on helping companies understand risks, meet safety requirements, and strengthen their readiness using modern safety practices.

Through field visits, training programmes, and ongoing consultations, authorities hope to raise awareness of best practices and ensure they are effectively implemented on the ground.

Officials say the initiative also supports business continuity, helping companies operate more efficiently while protecting employees, an increasingly important factor for organisations looking to attract and retain talent in the UAE.

Colonel Jassim bin Talai’a added that building a culture of safety is a shared responsibility, encouraging companies to actively engage with the programme and take advantage of the support offered.

For workers, this means safer day-to-day working conditions, fewer risks on-site, and greater awareness of their rights and safety procedures, as more companies are guided to meet proper standards and prioritise employee wellbeing.