Payment in United Arab Emirates

General Employee Pay Regulations in the UAE

Employee pay in the UAE is regulated by the Ministry of Human Resources and Emiratisation (MOHRE), through the Wage Protection System (WPS), ensuring fair, timely, and transparent wage practices. Employers must issue payslips showing gross salary, allowances, deductions, and net pay, and salaries must be paid through the WPS. Non-compliance can result in fines, restrictions on new work permits, and employee claims.

Minimum wage

The statutory minimum wage in the UAE is 2,000 AED per month, with no minimum hourly rate specified.

Frequency

Employees must be paid at least once a month in the agreed currency. Salaries are typically paid on the last working day of the month. WPS requires payments to be processed electronically through approved banks and registered with the Ministry of Human Resources and Emiratisation.

Deductions and contributions

• Employees do not pay personal income tax or social security contributions in the UAE.
• Employers are responsible for covering statutory costs, including medical health insurance and end-of-service gratuity.
• Any deductions must be lawful and specified in the employment contract, such as for loans or fines imposed under labour law.

Payday

Wages must be deposited electronically into employees’ bank accounts via WPS. Delays of more than 15 days are considered violations, with penalties escalating for repeat breaches.

Penalties for non-compliance

Failure to comply with wage obligations, including late or missing payments, unauthorised deductions, or WPS breaches, can result in:

• Suspension of new work permits
• Administrative fines
• Court claims for back pay and compensation