According to Ministerial Resolution No. 340 of 2026, the UAE’s updated Wage Protection System (WPS) rules will require all private sector employers to pay salaries on the first day of each month, starting June 1, 2026. Any payment made after that date will automatically be classified as delayed.

One of the most important decisions that business owners looking to set up a new business in the UAE have to make, is whether to establish their company in a free zone or on the mainland. Both options have advantages, but each serve a different strategic purpose that can impact company operations, market access, cost, and regulatory obligations. Careful consideration and an early-stage strategic assessment of the company’s business model, target market, and long-term growth objectives are therefore essential.