UAE residents to see five major changes from June 1
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From strict new salary deadlines to a lower legal adulthood age, here is how the 5 major updates will impact your daily wallet and routine
One of the most significant legal reforms coming into effect from June 1 is the lowering of the legal age in the UAE from 21 to 18, under Federal Decree-Law No. 25 of 2025.
One of the most significant legal reforms coming into effect from June 1 is the lowering of the legal age in the UAE from 21 to 18, under Federal Decree-Law No. 25 of 2025.
As UAE residents will end the Eid Al Adha holidays, returning to work on June 1, 2026, will bring with it a lot of changes to everyday life in the UAE, as some major rules come into effect from Monday.
From a new salary payment law, to VAT charges and even changes in the way you pay for parking, the updates will affect young adults, motorists and workers.
- Salaries should be paid by first of each month
All workers in the private sector will be legally entitled to receive their pay on the first of each month, starting June 1, according to a ministerial resolution issued earlier this month by the Minister of Human Resources and Emiratisation.
Establishments will be given a regulatory grace period of up to 10 days before the Ministry of Human Resources and Emiratisation (MOHRE) begins applying administrative penalties. In case salaries do get delayed, here is how the ministry will address such cases:
- VAT on parking fees
Motorists in Dubai will also now need to factor in a 5% Value Added Tax (VAT) when planning their monthly parking and Salik budgets.
On May 26, Parkin announced that from June 1, VAT at 5% will be applied to all parking services provided by Parkin, which includes on-street and off-street parking, seasonal cards, permits and reservations.
Overnight parking from 1am to 6am will remain free.
- VAT on Salik
The other service where VAT will become applicable is Salik – with the 5% VAT being applied on tolls and tag activation. For toll crossings, the VAT will be applied as per the variable toll timings that have been announced by Salik previously:
Monday to Saturday
Peak hours (6am to 10am and 4pm to 8pm): AED 6 + VAT
Off-peak hours (10am to 4pm and 8pm to 1am): AED 4 + VAT
1am to 6am: Free
Sunday (except public holidays and special occasions)
Peak hours: AED 4 + VAT
Off-peak hours: AED 4 + VAT
1am to 6am: Free
- Parking meters going fully cashless
Another major change coming into effect from June 1 is the gradual phasing out of cash payments at parking meters across Dubai.
- UAE legal adulthood age changes to 18
A significant legal reform will also come into force on June 1.
Under the new Civil Transactions Law — Federal Decree-Law No. 25 of 2025 — the UAE will lower the general age of legal majority from 21 to 18.
The law replaces Federal Law No. 5 of 1985 and grants 18-year-olds full legal capacity for civil matters.
This means young adults aged 18 and above will generally be able to:
Sign contracts independently
Manage finances and bank accounts
Buy, sell and manage assets
Assume civil liability in their own name
Previously, many such actions required guardian involvement until the age of 21.
So, if you’re in the habit of pulling out coins from your wallet every time you park, this is your time to switch to cashless payments.
According to Parkin, the decision is in line with Dubai’s cashless strategy and motorists will have multiple cashless options to pay for the parking, including through nol cards, SMS, the Parkin and RTA app as well as by using their NFC-enabled payment cards at the meters.
