Several important regulatory changes came into effect across the UAE on June 1, impacting employees, businesses, motorists and young adults. From stricter salary payment requirements to VAT on parking and Salik fees, these updates are designed to modernise systems, improve compliance and streamline services.
Here is a breakdown of the key changes now in force.
Private Sector Salaries Must Be Paid by the First of Every Month
One of the most significant changes affects private sector employers.
From June 1, companies are required to pay employee salaries on the first day of each month. The move aims to strengthen worker protections and ensure timely wage payments across the private sector.
Businesses that fail to meet the deadline may face penalties, restrictions and compliance measures from the relevant authorities. Employers are therefore expected to review their payroll processes and ensure salaries are transferred on time.
For employees, the new rule provides greater certainty around monthly income and financial planning.
VAT Now Applies to Parking Fees
Motorists across the UAE will now see a 5 per cent Value Added Tax (VAT) added to various parking-related services.
The VAT applies to:
- Public parking fees
- Seasonal parking permits
- Parking reservations
- Parking cards
While the increase may seem modest on individual transactions, frequent users of public parking facilities could notice a gradual rise in their monthly transport expenses.
Salik Toll Charges Subject to VAT
Dubai motorists will also need to factor in VAT when using Salik toll gates.
A 5 per cent VAT now applies to both Salik toll crossings and tag activation fees. The existing Salik pricing structure remains unchanged, with VAT added to the applicable toll charge.
Monday to Saturday
Peak Hours (6am to 10am and 4pm to 8pm)
- AED 6 plus VAT
Off-Peak Hours (10am to 4pm and 8pm to 1am)
- AED 4 plus VAT
1am to 6am
- Free
Sunday
(Except public holidays and special occasions)
Peak Hours
- AED 4 plus VAT
Off-Peak Hours
- AED 4 plus VAT
1am to 6am
- Free
The change means drivers will see a slight increase in their overall commuting costs, particularly those who regularly pass through multiple toll gates each day.
Dubai Parking Meters Moving Towards Cashless Payments
Dubai is continuing its transition towards digital services by gradually phasing out cash payments at parking meters.
Motorists are encouraged to use alternative payment methods, including:
- Parkin App,
- RTA App,
- SMS payments,
- nol cards,
- Bank cards.
The move is intended to improve convenience, reduce cash handling and support Dubai's broader smart city ambitions.
Legal Adulthood Age Reduced from 21 to 18
Another major development is the adjustment of the UAE's legal adulthood age.
The legal age has been lowered from 21 to 18, granting young adults greater legal independence and responsibility.
Individuals aged 18 and above can now:
- Sign contracts independently,
- Open and manage bank accounts,
- Buy and sell assets,
- Assume civil liability in their own name.
The change aligns legal rights and responsibilities more closely with international standards and provides young adults with greater autonomy in managing personal and financial affairs.
