MoHRE: 90 Financial Institutions Process Salaries for 99% of Private-Sector Workers, Monthly Wage Transfers Exceed AED 37 Billion

Dubai: The Ministry of Human Resources and Emiratisation (MoHRE) has announced that over 90 financial institutions, including banks and exchange houses, are engaged in the Wage Protection System (WPS), facilitating salary transfers that surpass AED 37 billion each month. This initiative is crucial for ensuring timely wage payments across the private sector.

Last month, the ministry observed a significant uptick in compliance with wage payments, with numerous companies opting to disburse salaries prior to the Eid Al Adha holiday, ahead of the standard payment date on the first of the month. This trend indicates a robust culture of compliance and a stable labor market.

The implementation of the new Wage Protection System decision is set to commence on July 1, covering salaries for June. This decision adopts a gradual approach, allowing companies the necessary time to rectify any compliance issues before regulatory actions are enforced.

According to MoHRE, more than 600,000 establishments operate under its oversight, while the Wage Protection System encompasses approximately 99% of private-sector employees. The ministry noted that the vast majority of businesses consistently meet their wage payment obligations.

Key Pillar of Labour Market Stability

Khalil Ibrahim Al Khoury, Undersecretary for Labour Market Operations and Emiratisation at MoHRE, emphasized that the Wage Protection System is a fundamental component supporting labor market stability in the UAE. He stated that the system enhances transparency, safeguards workers’ rights, and fosters compliance within the business environment. It ensures timely wage payments, bolstering confidence in the workplace and mitigating disruptions that could jeopardize employment relationships or business continuity.

Al Khoury remarked that the recent decision is part of MoHRE’s ongoing efforts to refine the regulatory and procedural framework of the Wage Protection System, thereby improving monitoring efficiency and governance while reinforcing stable labor relations. He clarified that the changes do not impose significant new obligations on employers but rather enhance existing procedures and governance mechanisms.

Early Intervention and Risk-Based Approach

Al Khoury explained that the decision standardizes monitoring procedures related to wage payments, clarifying obligations and enabling quicker responses to delayed salary payments. The ministry employs a risk-based and phased approach, beginning with electronic monitoring of delayed payments, followed by notifications and direct communication with companies to provide opportunities for rectification.

Precautionary measures, such as suspending certain services, will only be considered after these initial steps, with further escalation reserved for cases of ongoing non-compliance. This approach aims to promote preventive compliance, allowing companies ample time to address issues before penalties are enforced.

Enforcement efforts will focus more on labor-intensive sectors, such as construction and maintenance, where salary delays can have broader implications for labor relations and business continuity.

85% Salary Transfer Threshold

Al Khoury noted that a company is deemed compliant if it transfers at least 85% of the total wages due. This threshold offers flexibility to accommodate operational circumstances, including annual leave, sick leave, and legally permitted deductions due to employee absences, while still safeguarding workers’ rights and financial stability.

More Than 60 Million Interactions with Companies

The Undersecretary stated that MoHRE supervises over 600,000 companies, with the majority adhering to wage payment requirements. The ministry prioritizes direct communication with employers before initiating regulatory actions. In 2025, MoHRE recorded over 60 million interactions with businesses through various communication channels, including text messages, emails, and phone calls.

Compliance-monitoring measures are implemented based on risk assessments, economic activity, and workforce size, ensuring that attention is directed toward sectors most vulnerable to salary payment delays while maintaining the stability of critical industries.

July 1 Implementation

The ministry reiterated that the new decision will take effect on July 1, 2026, for salaries due for June. The Wage Protection System aims to ensure timely wage payments, enhance trust in the workplace, minimize labor disputes and work stoppages, and support stable employment relationships and business continuity.

MoHRE highlighted that the Wage Protection System is one of the UAE’s largest financial programs, managing monthly transfers exceeding AED 37 billion. This underscores the system’s vital role in supporting labor market stability, enhancing business confidence, and aligning with economic growth and expansion across various sectors.