The UAE Ministry of Human Resources and Emiratisation has issued Ministerial Resolution No. 0340 of 2026, introducing a tightened framework for wage compliance in the private sector. The Resolution, which will come into effect on 1 June 2026, introduces a unified wage payment date, sets compliance thresholds, and imposes fines for non-compliance for the same on establishment owners.
Unified Due Date for All Private Sector Wages
The Resolution imposes the first day of each Gregorian month as the unified due date for payment of workers’ wages in the private sector for the preceding month. Any payment made after this date is treated as a late payment, regardless of how minimal the delay is. Any delay shall result in triggering the enforcement measures laid down in Annex No. 1 of the Resolution.
At the very least, an establishment is deemed compliant with the law, where it transfers at least 85% of total wages due to the worker, provided that the remaining amount relates to lawful deductions or withholdings permitted under Federal Decree-Law No. 33 of 2021.
Procedures and Measures Resulting from Delayed Wage Payment
The resolution provides the following steps to be taken in an escalatory manner for a delay in payment of wages:
• From day one, non-compliant establishments will be subject to electronic monitoring.
• By day two, automated notifications and alerts will be issued to non-compliant establishments.
• From day five, new work permit issuances are suspended, and the owner is sent a warning to pay.
• On day eleven, the owner shall be subject to administrative fines under Cabinet Resolution No. 21 of 2020.
• On day sixteen, any establishments employing 25 or more workers shall face automatic registration of individual or collective labour disputes and suspension of all work permit issuances.
• By day twenty-one, more severe actions are taken, including precautionary attachment of establishment assets, travel bans on persons in charge, and referral to the Public Prosecution for establishments employing more than 50 workers.
Exclusions
The Resolution provides for exclusions from the above obligation under the conditions, some of which are listed below:
• Worker is involved in an active wage-related court dispute,
• Workers reported as absconding from work,
• A worker on unpaid leave,
• Fishing boats owned by individual citizens,
• Foreign workers employed by foreign establishments are being paid wages outside of the UAE,
• Banks and financial institutions,
• Places of Worship
Conclusion
The Resolution has taken a strict approach to effectively resolving the wage-related disputes that arise during the course of employment. Wage compliance has now become a time-bound enforcement mandate with escalatory consequences for each day of delay. Establishments will now be required to overhaul their systems to comply with the above-stated guidelines.
“This article is for information purposes only and does not constitute legal or professional advice”.
