UAE scraps 15-day grace period for payment delays for private sector

Starting June 1, private firms in the UAE will need to pay employees on the first of each month or face strict penalties as the Ministry of Human Resources and Emiratisation (MoHRE) removes the 15-day grace period for payments under a new resolution.

In ministerial resolution No. (0340) of 2026, posted on May 12, the first day of each Gregorian month has been set as the unified day for paying salaries through the Wage Protection System or any other systems adopted by the ministry.

Notifications will be sent to defaulting firms from day 2 of the month, with employers not allowed to issue new work permits if the payment isn't made until the 5th day of the month.   

If the delay extends to the first 11 days of the month, firms will face fines and blacklisted, while further legal action and travel ban awaits employers who default from 16th of the month until the 21st.

The authority also noted that a wage payment is considered successful if the employee receives no less than 85 per cent of the total wages, provided that the difference is due to lawful deductions.