Paying wages within 10 days of due date is a legal requirement in UAE. Up to Dh50,000 fine for not paying salaries on time; penalties for delays explained
12 January 2022, 12:00 AM
31 January 2022, 12:00 AM
UAE Ministry of Human Resources and Emiratisation (MoHRE) recently reminded private sector establishments to commit to paying the salaries of workers on time.
The WPS, which was implemented in 2009, is an electronic mechanism that ensures timely payment of workers' wages.
Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions that are authorised by the Central Bank of the UAE.
According to the official UAE Government website, companies can be penalised for not paying salaries on time. Salary is considered ‘late’ if the wage is not paid within 10 days from the due date.
- Entry of incorrect data in the WPS for evasion or circumvention: Dh5,000 per worker, with a
maximum of Dh50,000.
- Failure to pay on due dates through the WPS: Dh1,000 per employee.
- Forcing employees to sign fake pay slips showing that they received their salaries: Dh5,000 per
- If wages are delayed by over 60 days, a fine of Dh5,000 per worker will be levied, with a maximum
fine of Dh50,000.
- They will not be issued work permits starting from the 16th day from the date of delay.
- Employees’ bank guarantees will be liquidated.
- The company will be downgraded to the third category.