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Not getting salary in UAE on time? Keep these rules handy

Here's what every employee working in the UAE should know.

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Report unpaid or delayed salaries: For any concerns or complaints regarding the salary, employees may contact Ministry of Human Resources and Emiratisation (MoHRE) or lodge a complaint through eNetwasal.
Report unpaid or delayed salaries: For any concerns or complaints regarding the salary, employees may contact Ministry of Human Resources and Emiratisation (MoHRE) or lodge a complaint through eNetwasal.
When employers should pay salaries: In the UAE, workers employed in return for an annual or a monthly wage must receive their salaries once a month on due dates and no later than 10 days after the end of each salary period.
When employers should pay salaries: In the UAE, workers employed in return for an annual or a monthly wage must receive their salaries once a month on due dates and no later than 10 days after the end of each salary period.
If such periods are not mentioned in the contract, the employer must pay the employee once every 14 days. Payment must be in the national currency of the UAE and must be done on working days.
If such periods are not mentioned in the contract, the employer must pay the employee once every 14 days. Payment must be in the national currency of the UAE and must be done on working days.
Minimum wages: There is no minimum salary stipulated in the UAE Labour Law. However, it broadly mentions that salaries must cover basic needs of the employees.
Minimum wages: There is no minimum salary stipulated in the UAE Labour Law. However, it broadly mentions that salaries must cover basic needs of the employees.
Article 63 of the Labour law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet.
Article 63 of the Labour law mentions that the minimum wage and cost of living index is determined either in general or for a particular area or a particular profession by virtue of a decree and consent of the Cabinet.
Basic salary and total salary: The UAE Labour Law does not provide any guidelines on the percentage of the basic salary to be paid by the employer. So it is at the discretion of the company to decide this percentage and the employee may negotiate, accept or not.
Basic salary and total salary: The UAE Labour Law does not provide any guidelines on the percentage of the basic salary to be paid by the employer. So it is at the discretion of the company to decide this percentage and the employee may negotiate, accept or not.
How salaries should be paid: According to Ministerial Decree No. 739 of 2016 Concerning the Protection of Wages, all employers registered with MoHRE must subscribe to Wages Protection System (WPS) and pay the wages of their employees through the WPS, as per the due dates.
How salaries should be paid: According to Ministerial Decree No. 739 of 2016 Concerning the Protection of Wages, all employers registered with MoHRE must subscribe to Wages Protection System (WPS) and pay the wages of their employees through the WPS, as per the due dates.
Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service.
Under this system, salaries of employees will be transferred to their accounts in banks or financial institutions, which are authorised by Central Bank of the UAE to provide the service.
MoHRE will not process any transactions or deal with the owners of the companies that are not registered with the WPS until they register in the system.
MoHRE will not process any transactions or deal with the owners of the companies that are not registered with the WPS until they register in the system.
Fines for evading WPS: According to Ministerial Resolution No. 15 of 2017, the following fines apply for actions involving fraudulent use of the WPS.
Fines for evading WPS: According to Ministerial Resolution No. 15 of 2017, the following fines apply for actions involving fraudulent use of the WPS.
Entry of incorrect data in the WPS for the purposes of evasion or circumvention - Dh5,000 for each worker and a maximum limit of Dh50,000 in case of multiple workers.
Entry of incorrect data in the WPS for the purposes of evasion or circumvention - Dh5,000 for each worker and a maximum limit of Dh50,000 in case of multiple workers.
Failure to pay on due dates through the WPS - Dh1,000 per employee.
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 employee.
Forcing employees to sign fake pay slips showing that they received their salaries -- Dh5,000 per employee.
Late or unpaid salaries: The employer is considered as late in paying wages if the wage is not paid to the employee within 10 days from the due date, which is the next day of the end of the salary period.
Late or unpaid salaries: The employer is considered as late in paying wages if the wage is not paid to the employee within 10 days from the due date, which is the next day of the end of the salary period.
The employer is considered as refusing to pay wages if the wage is not paid to the employee within one month of the due date.
The employer is considered as refusing to pay wages if the wage is not paid to the employee within one month of the due date.
Here are the consequences of companies employing over 100 workers failing to pay wages within a period not exceeding 10 days:
Here are the consequences of companies employing over 100 workers failing to pay wages within a period not exceeding 10 days:
They will not be issued work permits starting from the 16th day from the date of delay; such companies delaying wages a month from the due date will be referred to judicial authorities for punitive measures; action would be taken against all companies owned by the same owner; the owner/s will not be able to register any new company; employees' bank guarantees will be liquidated; the company will be downgraded to the third category; workers will be allowed to move to other companies.
They will not be issued work permits starting from the 16th day from the date of delay; such companies delaying wages a month from the due date will be referred to judicial authorities for punitive measures; action would be taken against all companies owned by the same owner; the owner/s will not be able to register any new company; employees' bank guarantees will be liquidated; the company will be downgraded to the third category; workers will be allowed to move to other companies.
In case a company employing over 100 workers delays wages over 60 days, a fine of Dh5,000 per worker whose wage is delayed will be levied with a maximum fine of Dh50,000 in cases of multiple workers’ delayed wages.
In case a company employing over 100 workers delays wages over 60 days, a fine of Dh5,000 per worker whose wage is delayed will be levied with a maximum fine of Dh50,000 in cases of multiple workers’ delayed wages.
Here are the consequences of companies employing fewer than 100 workers failing to pay wages:
Here are the consequences of companies employing fewer than 100 workers failing to pay wages:
If a company employing less than 100 workers fails to pay the salary within 60 days from due date, penalties will include: work permits ban; fines; referral to court.
If a company employing less than 100 workers fails to pay the salary within 60 days from due date, penalties will include: work permits ban; fines; referral to court.

Published: Fri 20 Dec 2019, 10:01 AM

Last updated: Tue 11 Feb 2020, 6:16 PM

If the company commits such violations more than once in one year, MoHRE will apply penalties stated for companies that employ over 100 workers.
If the company commits such violations more than once in one year, MoHRE will apply penalties stated for companies that employ over 100 workers.

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