UAE Digital Government (DGOV) has encouraged workers to report ‘unpaid or delayed salaries’ in the private sector to the Ministry of Human Resources and Emiratisation as tough penalties for violators announced.
UAE Digital Government emphasized that paying wages on time is the employer’s responsibility and urged employers to use the Wages Protection System (WPS) for timely salary payments to avoid penalties.
Key points highlighted by the UAE Digital Government include:
- Employee wages are due from the first day of the month following the employment contract’s specified period or at least once a month if not specified.
- Employers who fail to pay wages within 15 days after the due date are considered in default, unless a shorter period is agreed upon in the employment contract.
- The UAE Labor Law does not specify a minimum salary but requires salaries to cover employees’ basic needs.
- All employers registered with the Ministry of Human Resources and Emiratisation (MoHRE) must subscribe to the WPS and pay employee wages through it.
- Penalties for companies failing to pay wages on time include reminders, notifications, work permit suspensions, and potential legal action.
- Repeat violations within six months may result in administrative fines and reclassification of the establishment.
- Some categories of employees and employers are excluded from WPS compliance, such as those involved in wage-related lawsuits, new employees in their first 30 days, and certain UAE nationals and institutions.
The DGOV’s efforts aim to ensure the timely and fair payment of wages in the private sector and to provide a framework for addressing violations effectively.
