UAE introduces strict law against salary delays, companies to face action
World News

UAE introduces strict law against salary delays, companies to face action

19 May 2026

(Digital Report) The United Arab Emirates has enforced a new and strict law to ensure the timely payment of employees’ salaries. Under the new regulation, private sector companies are now required to pay salaries on the first day of every month. The move is being seen as an important step toward protecting workers’ rights.

“New deadline for private companies”

According to the UAE Ministry of Labour, the law will apply only to private sector companies, while government institutions will remain outside its scope. Under the new policy, every company must pay its employees’ salaries on a monthly basis by the specified date.

Authorities have clarified that if a company fails to pay salaries on time, it will be considered a delay. In such cases, legal action, fines, and other administrative measures may be taken against the company concerned.

The Ministry of Labour stated that the primary objective of this law is to protect employees from financial difficulties and make the salary payment system more transparent and effective. Officials say the measure will further strengthen trust in the labour market.

Reports suggest that the UAE has already introduced several reforms aimed at protecting workers’ rights. This new law is considered another important step in improving the country’s labour system.

Experts say the decision will particularly benefit foreign workers employed in private companies who rely on timely salaries. The new policy is expected to significantly improve their financial security and stability.