UAE Tightens WPS Oversight to Speed Up Action on Delayed Salaries

The UAE’s latest updates to the Wage Protection System (WPS) are aimed at accelerating action on delayed salary payments and improving oversight procedures, the Ministry of Human Resources and Emiratisation (MoHRE) has clarified.

The ministry said the revised framework, which came into effect on June 1, does not create any new substantive obligations for employers. Instead, it formalises and standardises wage monitoring procedures to provide greater clarity on salary payment timelines and compliance measures.

Under the updated system, salaries for MoHRE-regulated private sector companies are due on the first day of every month. Any payment made after that date will be classified as delayed.

MoHRE said the changes are designed to enable quicker intervention in delayed wage cases, helping to reduce potential disruption to employment relationships and business operations.

The ministry explained that WPS follows a gradual and balanced compliance approach. The process begins with electronic monitoring and notifications to employers, allowing companies time to rectify delays before administrative measures are enforced within approved timelines.

According to MoHRE, the framework is intended to encourage preventive compliance and resolve violations at an early stage while minimising the impact on labour market stability and business continuity.

The ministry added that establishments will be considered compliant if at least 85 per cent of total wages due are transferred within the specified timeframe. However, it stressed that the threshold is only a compliance benchmark and does not permit employers to underpay workers, who remain entitled to recover any outstanding dues.

MoHRE also said some monitoring measures are implemented using a risk-based approach, with particular focus on labour-intensive sectors where delayed salaries can have a greater impact on workers and operational stability.

The ministry noted that the approach supports the sustainability of key economic sectors while protecting the interests of both employers and employees.

With the WPS processing more than Dh37 billion in wages every month, MoHRE said the system continues to play a central role in maintaining labour market stability and strengthening business confidence in the UAE.

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