Payroll enforced. EOSB next?

1 June 2026: For many employers, the new Wage Protection System (WPS) rules may have arrived as a surprise (and with little notice). MOHRE has described the objectives of the new rules as streamlining processes, improving compliance and supporting labour market stability.

The emphasis on labour market stability is particularly important.

The UAE economy relies heavily on an expatriate workforce. If salaries and employee benefits are not protected, the ripple effects extend far beyond the employer-employee relationship. Housing, education, banking, retail and consumer spending all depend on employees remaining financially secure and resident in the country.

End-of-Service Benefits (EOSB) is also part of that equation, albeit with a much longer-term purpose.

Given the current economic environment, some employers may question whether a mandatory rollout of the UAE EOSB Savings Scheme is realistic. If certain businesses are already facing cash flow pressures meeting monthly payroll obligations, how can they also be expected to fund monthly EOSB contributions?

It is a valid question. However, the recent payroll reform demonstrates that supporting labour market stability (and by extension, employee protection) remains a policy priority, even when employers face cost and cash flow pressures.

The question for employers is: Could EOSB follow a similar path?

Whether the UAE ultimately proceeds with mandatory EOSB adoption this year, next year or later remains uncertain. However, the recent payroll enforcement is a credible alert for employers to start preparing.