United Arab Emirates · employment

Is There a Grace Period for Salary Payment in the UAE?

As of June 1, 2026, the United Arab Emirates has officially eliminated the traditional 15-day grace period for salary payments in the private sector. Under the updated Wage Protection System (WPS) rules, salaries are legally considered delayed if they are not paid by the first day of the following month. If your employer is withholding your wages, you have the legal right to take immediate action through the Ministry of Human Resources and Emiratisation.

What the law says about salary grace periods in the UAE

For years, private-sector employers in the United Arab Emirates relied on a 15-day buffer zone to process monthly payroll. However, the legal landscape changed fundamentally with the introduction of Ministerial Resolution No. 340 of 2026 (which officially repealed the older Ministerial Resolution No. 598 of 2022). Under this strict updated framework, the 15-day grace period has been completely abolished.

Today, the law mandates a single, unified deadline for all MOHRE-registered private-sector companies: wages for the preceding month are legally due on the 1st day of the following Gregorian month. For example, your salary for May must clear into your account by June 1. Any payment made after the 1st day of the month is automatically flagged as delayed and non-compliant by the Wage Protection System (WPS).

Furthermore, the compliance threshold has been raised. A company is only considered compliant if at least 85% of its total payroll is paid on time, and an individual worker is only considered 'paid' if they receive at least 85% of their entitled wages. This 15% buffer exists purely to accommodate lawful deductions (such as loan repayments or court orders); it is not a license for your employer to arbitrarily shortchange your pay packet.

The automated MOHRE enforcement timeline

You do not have to wait weeks for the government to notice that your company is withholding your pay. The Ministry of Human Resources and Emiratisation (MOHRE) utilizes automated electronic monitoring that tracks bank and WPS transactions in real time. If your salary does not arrive on the 1st, an escalating chain of penalties begins automatically.

On Day 2 of any delay, the system flags the non-compliant employer and issues immediate automated warnings. If the delay stretches to Day 5, MOHRE triggers an automatic work permit freeze, preventing the company from hiring any new employees. By Day 11, the ministry imposes administrative fines of AED 1,000 per affected worker (up to AED 20,000 for repeat offenses within six months).

For severe delays, the consequences escalate dramatically. On Day 16, MOHRE automatically registers labor disputes on behalf of employees in companies with 25 or more workers. By Day 21, for firms with 50 or more employees, the authorities can refer the company's management to the Public Prosecution, freeze corporate bank assets, and slap travel bans on executives until every dirham of unpaid wages is settled.

What you can do to claim your late wages

If your employer claims they have 'until the 15th' to pay you, they are either severely misinformed or deliberately misleading you. You have the right to hold them accountable. You do not need to wait for the automatic systems to run their course; you can file an official complaint directly through the MOHRE mobile app, the official website (mohre.gov.ae), or by calling the dedicated labor claims line at 80084.

For unpaid wage claims up to AED 50,000, MOHRE has the legal authority to issue binding, enforceable decisions without needing to refer your case to the civil court system. This fast-tracks your recovery process and prevents employers from dragging out simple salary disputes for months.

If you are dealing with a difficult employer, or if you have recently resigned and have not received your final settlement (which must be paid within 14 days of your contract end date), taking immediate legal action is vital. To make sure you navigate these rules perfectly, you can use Caunsel to research UAE labor regulations, securely save your contracts and bank statements in a dedicated case file, or connect directly with an independent UAE-licensed attorney.

Steps

• Verify your bank statement on the 2nd day of the month to confirm your salary has not arrived through the Wage Protection System.
• Draft a formal, written request to your HR or payroll department asking for immediate clarification regarding the unpaid wages.
• Compile all relevant evidence, including your unified MOHRE employment contract, past payslips, and bank statements showing non-payment.
• File an official labor complaint through the MOHRE app, website, or the toll-free hotline (80060) to initiate an investigation.

Common mistakes

• Accepting verbal promises of payment and letting weeks pass without filing a formal complaint, which allows the employer to evade the immediate regulatory penalties.
• Failing to keep accurate records of your working hours, contract amendments, or past payslips, making it harder to prove the exact amount of unpaid wages.
• Signing end-of-service settlement sheets or visa cancellation documents that falsely declare you have received all your financial entitlements.

Questions people ask

What is the official grace period for salary payments in the UAE?

There is no longer a grace period. Under Ministerial Resolution No. 340 of 2026, the previous 15-day grace period was abolished, and salaries are legally considered delayed if they are not paid by the 1st of the following month.

Does the salary deadline apply if the 1st of the month is a weekend or public holiday?

Yes. The UAE Ministry of Human Resources and Emiratisation does not make exemptions for weekends, public holidays, or banking processing delays. Payroll must clear on or before the 1st day of the Gregorian month.

Can my employer pay only 85% of my salary under the new rules?

No. The 85% threshold is a regulatory compliance metric designed to prevent automatic system penalties when legitimate, lawful deductions are applied. It does not give your employer the legal right to permanently withhold 15% of your contractually agreed salary.

General information only, last updated 2026-10-03. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in United Arab Emirates.