The Labor Law specifies the dates on which employees in the UAE must receive their salaries.
When is it appropriate for employers in the UAE to pay salaries?
The first day of the month that follows the conclusion of the period stipulated in the employment contract is the day on which the employee is expected to receive their salary. Even if there is no set amount of time, the employee must receive payment at least once per month.
If the employer fails to pay the wage within the first fifteen days following the due date, the employer is considered to be in default, unless the employment contract stipulates a shorter period of time by agreement.
How salaries should be paid in the UAE?
With the Wage Protection System (WPS), the government of the United Arab Emirates (UAE) hopes to establish a mechanism that is not only safe and secure but also effective in order to facilitate the timely payment of wages to employees by their employers.
All employers registered with the Ministry of Human Resources and Employment must subscribe to the WPS and pay wages to their employees through it. The Central Bank of the United Arab Emirates has granted permission for banks or other financial institutions to transfer workers' salaries to their accounts through the implementation of this system.
The Ministry of Housing and Rural Enterprises did not process any transactions or deal with the owners of firms not registered with the WPS prior to their registration in the system. You can use the Emirati dirham or any other currency for payment, as long as both parties in the employment contract agree on the currency.
In addition, the government has imposed penalties on businesses that fail to pay their employees' wages on the given dates.
What is the minimum wage in the UAE?
The United Arab Emirates Labor Law does not set a minimum pay requirement. On the other hand, it makes a general mention of the fact that compensation should be sufficient to satisfy the employees' fundamental requirements.
