UAE Salary Rule Changes From June 1: What Indian Expats And Employers Must Know

Major change in payment of salaries in the private sector in the UAE! From 1st June 2026, the payment of wages for private sector companies registered with the Ministry of HR and Emiratisation (MoHRE) to all employees shall be made on the 1st of every Gregorian month using the Wages Protection System (WPS) or through any other approved payment channel on a monthly basis. Ministerial Resolution No. 340 of 2026 has been issued to ensure timely payment of wages and to bring about increased transparency in payments made to employees in the private sector. This is an especially important change for the 3.5-4.3 million Indian expatriates who live and work in the United Arab Emirates.

What will be different from June 1, 2026?

The new salary payment structure, announced by MoHRE in May via a series of notifications and social media posts, was introduced under Ministerial Resolution No. 340 of 2026. The ministry said the official date for payment of salaries for private-sector employees through the Wage Protection System (WPS) and other approved payment channels will now be the first day of each Gregorian month.

Day one coverage for new employees

Another big change is the end of the old 30-day exemption for new hires.

Previously, new hire employees were not subject to WPS requirements immediately. From June 1, new hires would have to be paid in the same pay period they start with the company.

This means employers can no longer wait for the next month to pay a new employee his first salary.

Penalties for late salaries

MoHRE has a strong enforcement mechanism in place for companies that fail to pay wages on time.

From the second day of the month, companies that do not fulfil their obligations can receive notifications of salary payment delays.

If employers do not pay salaries by the fifth of the month, the authorities could prevent them from issuing new work permits.

As reported by the Gulf News, delays after the initial ten days of the month will result in financial penalties, suspension and, likely, a ban. Any non-compliance after mid-month could result in more legal consequences, such as a ban on travel for the owners or administrators of the company.

When ‘delayed salaries’ are not considered violations

The ministry has identified a few cases where salary delays won’t be considered WPS violations.

These are workers involved in ongoing wage disputes in the courts, workers reported as absconders, workers whose freedom is restricted by judicial or administrative orders, workers on unpaid leave and some foreign workers whose wages are paid outside the UAE with the ministry’s approval.

The exemption also covers workers on mission permits for a period not exceeding three months and workers in specific sectors such as seafarers, banks, financial institutions and places of worship.

Enable third-party payroll providers

The new rule acknowledges the use of external payroll service providers.

Companies may engage third-party payroll processors to handle salary payments, provided they notify MoHRE of the arrangement and the scope of services they provide.

But whether you outsource payroll or not, you remain solely responsible for salary compliance.

Why the new rules are important for Indian expats

The updated WPS framework will enhance salary payment discipline in the UAE’s private sector and provide further protection to employees.

To companies, the latest update is a call for streamlining payroll and compliance systems in time for monthly salary distribution. The new provisions also provide more protection to workers, particularly expatriates for whom timely salary payment is essential for remitting money and covering rents and household costs.

As India employs millions in industries like construction, hospitality, health and finance, their presence will significantly impact a majority of employers and workers across the UAE.

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