Payment in the UAE

The UAE does not have a general federal minimum wage for private sector employees. However, effective 1 January 2026, a minimum salary of AED 6,000 per month applies to Emirati nationals in the private sector for new, renewed, and amended work permits. Employers must align existing Emirati salaries to AED 6,000 by 30 June 2026. From 1 July 2026, Emiratis earning below this threshold will not count toward Emiratisation targets, and non-compliant employers may face restrictions on new work permits.

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.

• 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.

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.

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