The Ministry of Human Resources and Emiratisation confirmed that more than 90 financial institutions, including banks and exchange houses, are providing Wage Protection System services, managing transfers exceeding AED 37 billion per month, while highlighting that last month recorded high compliance levels among companies in paying salaries, as many firms proactively disbursed wages ahead of Eid Al Adha and before the usual monthly deadline, reflecting a strong culture of compliance and labor market stability.

During a media briefing, the ministry announced that the official implementation of the new decision will begin on July 1, covering June salaries, emphasizing that the approach follows a gradual enforcement model that allows companies time to correct their status before penalties, which helps reduce labor disputes, prevent work stoppages, and strengthen the UAE’s attractiveness to global talent.

Khalil Ibrahim Al Khoori, Undersecretary for Labor Market and Emiratisation Operations, stated that the Wage Protection System is a fundamental pillar of labor market stability in the UAE, enhancing transparency, safeguarding worker rights, and ensuring timely salary payments, which reinforces trust in the business environment and minimizes risks affecting employment relationships or business continuity.

He added that the latest decision is part of ongoing efforts to enhance the regulatory and operational framework of the system without introducing major new obligations on employers, focusing instead on improving governance efficiency, monitoring mechanisms, and unified procedures to accelerate the resolution of delayed wage cases and enable early intervention.

Al Khoori further explained that the ministry adopts a risk-based approach starting with digital monitoring, alerts, and direct communication with companies before escalating measures, with greater focus on labor-intensive sectors such as construction and maintenance, noting that a company is considered compliant if it pays at least 85% of total wages, while the system now covers around 99% of private sector workers across more than 600,000 registered businesses.