UAE Correspondent:

In the UAE, the mandatory payment of salaries to private sector employees on the first day of the month has seen a surge in activity among companies. The number of companies processing salaries on the Wage Protection System (WPS) platform increased by 151 percent on the first day of the new rule, according to Al Ansari Exchange.

According to the company, a large number of companies paid salaries on June 1 to comply with the deadline set by the Ministry of Human Resources and Emiratization (MoHRE).

According to Ministerial Resolution No. 340 of 2026, from now on, the salaries of private sector employees for the previous month must be paid on the first day of each Gregorian month. This rule came into effect from June 1, 2026. As a result, if salaries are paid after the first day of the month, it will be considered late.

Previously, companies were allowed to pay salaries until the 10th of the month. The new rule has abolished that deadline and made it mandatory to pay salaries on the first day. Failure to comply with the directive will result in fines and other administrative measures against the relevant companies in accordance with the law.

Small and medium-sized enterprises (SMEs) in particular have stepped up their preparations to implement the new regulations. According to human resource experts, ensuring regular cash flow, updating payroll plans and maintaining effective communication with employees are now the most important things for these organizations.

According to the Central Bank of the United Arab Emirates, the number of employees registered in the WPS system increased from 6.06 million in 2024 to 7.26 million in 2025.

At the same time, the number of salary transactions increased from 6.75 million to 7.95 million. The total value of these transactions increased from 341 billion dirhams to 409 billion dirhams.

In addition, the number of registered employers increased from 321,070 in 2024 to 368,448 in 2025, an increase of about 15 percent.

Ali Al Najjar, CEO of Al Ansari Exchange, said that fast, efficient and reliable payroll services have become more important than ever for employers to adapt to the new regulations.

According to analysts, the importance of payroll management in the UAE is also rapidly increasing due to the country’s continuous economic growth, increasing rate of new business establishment and population growth.

According to Worldometers, the population of the Emirates is expected to reach about 11.6 million by 2026. On the other hand, last year, Dubai’s population exceeded 4 million for the first time, and Abu Dhabi’s population is also approaching 4 million.