Come June 1, the United Arab Emirates will witness a slew of changes with new rules coming into effect, including in salary payment, VAT charges on parking and even legal age, which has been reduced from 21 to 18.
As per reports, Federal Law No. 25 of 2025 on the Civil Transactions Law will replace the UAE’s Civil Code, which has been in force since 1985.
The key changes coming up include:
1) Legal age becomes 18: The legal age of adulthood will henceforth be 18 instead of 21. The new law will permit 18-year-olds to sign agreements, manage finances, participate in civil proceedings, establish businesses and deal with certain assets without requiring parental or guardian approval. This change will help align the UAE system with the international standard.
2) Salaries by the first of each month: The new regulation mandates that all workers in the private sector receive their pay on the first of each month, starting June 1. However, there will be a regulatory grace period of up to 10 days before the Ministry of Human Resources and Emiratisation (MOHRE) cracks down on the firms by applying administrative penalties.
3) VAT on parking fees: Vehicle owners will now have to pay 5 per cent Value Added Tax (VAT) when planning their monthly parking budgets. Parkin, Dubai’s official parking platform, has already announced that a 5-per-cent VAT will be applied to all parking services, including on-street and off-street parking, seasonal cards, permits, and reservations.
4) VAT in Salik: VAT will also be applicable in Salik – with the 5% VAT being applied on tolls and tag activation.
5) No more cash payments at parking metres: Parking metres will be phased out, which means the payment for parking tickets can be paid only using Nol cards. Customers are encouraged to use the Parkin mobile app in line with the digital transition. The app will also help users avoid additional SMS charges that apply to text-based parking payments.