When should employers pay salaries?
The employee's wages are due from the first day of the month following the expiry of the period for which the wages are specified in the employment contract.
If the period is not specified in the employment contract, the employee must be paid at least once a month.
The employer is in default of paying the wage if he does not pay it within the first 15 days after the due date, unless a shorter period has been agreed in the employment contract.
There is no minimum salary stipulated in the UAE Labour Law, however it broadly mentions that salaries must cover basic needs of the employees.
How salaries should be paid?
All employers registered with Ministry of Human Resources and Emiratisation (MoHRE) must subscribe to the ‘Wages Protection System (WPS)’ and pay the wages to their employees through it, as per the due dates.
Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service.
MoHRE does not process any transactions or deal with the owners of the companies that are not registered with the WPS until they register in the system.
Payment can be in Emirati Dirham, the national currency of the UAE or in any other currency, if it is agreed upon between both parties in the employment contract.
For more information refer to Administrative Decision No. 23 of 2022 Concerning Wages Protection System (WPS).
Penalties on companies failing to pay salaries
The table below lists penalties for companies failing to pay wages on the due dates:
Ministerial Resolution No. 346 of 2022 Regarding the Amendment of Certain Provisions of Ministerial Resolution No.43 of 2022 Regarding the Wages Protection System.
Categories excluded from WPS compliance
The following categories of employees are excluded from the WPS:
- those who filed a lawsuit related to wages
- those who have been reported absent as per a ‘work abandonment’ report
- ·new employees during the first 30 days from the due date of the wage
- those who are on unpaid leave, provided that supporting documents are duly submitted to MoHRE.
Additionally, the following categories of employers are excluded from the WPS compliance:
- UAE nationals owning fishing boats
- UAE nationals owning public taxis
- houses of worship
- seamen/sailors working on board vessels/ships through an application submitted by the firm
- workers in foreign firms or their subsidiaries operating in the UAE who receive their wages from outside the country, subject to the worker's consent and after an application is submitted by the firm.
*Text provided by MoHRE
Updated on 19 Oct 2022