UAE Declares January 1, 2026 Paid Public Holiday for Private Sector

The UAE has confirmed January 1, 2026, as a paid public holiday for all private-sector employees, aligning private-sector entitlements with the federal public holiday framework. The early announcement gives employers clarity to plan payroll, staffing, and operations for the start of 2026 in line with labor law requirements.

This early confirmation provides clarity for employers and employees as they plan staffing, operations, and payroll for the start of 2026.

What the MoHRE announcement covers

Under the MoHRE circular, Thursday, January 1, 2026, will be observed as an official paid public holiday for private-sector employees across the UAE. Specifically:

• The designation aligns with the federal public holiday list approved by the UAE Cabinet, ensuring consistent application across both the public and private sectors; and

• The early confirmation enables employers to integrate the holiday into workforce, payroll, and operational planning for 2026 with greater certainty.

How the holiday affects employers

1. Payroll and compensation requirements

Under the UAE’s Labour Law, private-sector employees are entitled to full pay on official public holidays. If an employee is required to work on January 1, employers must compensate them in accordance with statutory provisions, typically through:

• Overtime pay; or

• An alternative paid day off,
  depending on company policy and contractual terms.

The law treats public holiday pay as a core entitlement, separate from annual leave or other paid leave types.

2. Workforce planning and operations

With January 1 falling on a Thursday, there is potential for a longer weekend depending on internal scheduling and weekly rest days. HR teams should plan for:

• Adequate staffing in essential services;

• Communication of holiday policies to employees; and

• Coordination of shift work or customer-facing operations.

Advance planning reduces operational risks and ensures compliance with labour regulations.

Why the UAE public holiday calendar matters

The UAE uses a federal public holiday system that applies to both public and private sectors. This system is established under Cabinet resolutions, which are published in the government’s official public holiday schedule. uaelegislation.gov.ae

According to the official UAE government public holiday list:

• New Year’s Day: January 1 is a fixed Gregorian holiday.

• Other annual holidays include Eid Al Fitr, Arafat Day, Eid Al Adha, Islamic New Year, and National Day.

Comprehensive 2026 holiday forecasts show multiple significant dates that affect HR, payroll, and business operations, including long weekends that may be leveraged in workforce planning.

Practical tips for employers

To ensure compliance and minimize operational disruption around the New Year holiday, employers should take a proactive approach across payroll, communication, and workforce planning.

Review HR and payroll systems
Employers should verify that HR and payroll systems are correctly configured to reflect January 1 as a paid public holiday. This includes confirming that holiday pay is applied in line with statutory entitlements, that overtime or compensatory leave is accurately calculated for employees required to work on the day, and that attendance systems properly record public holiday absences. Early checks can help prevent payroll errors and reduce the risk of employee disputes.

Communicate holiday arrangements clearly to employees
Clear and timely communication is essential, particularly for businesses operating on shift-based or continuous schedules. Employers should inform employees of the holiday date, clarify compensation arrangements for those required to work, and highlight any internal policies that provide benefits beyond the statutory minimum. Transparent communication helps manage expectations and supports workforce engagement.

Plan operations with continuity in mind
For sectors such as retail, logistics, healthcare, and other essential services, operational planning should account for reduced staffing availability and potential disruptions across supply chains. Employers may need to adjust staffing rosters, maintain adequate customer service coverage, and coordinate with suppliers or partners that may close or operate on limited schedules during the holiday period. Advance planning allows businesses to balance compliance obligations with operational continuity.

Broader UAE public holiday landscape in 2026

Beyond New Year’s Day, UAE public holidays in 2026 include (subject to moon sighting for Islamic dates):

• Eid Al Fitr (expected March);

• Arafat Day and Eid Al Adha (May);

• Islamic New Year and Prophet Muhammad’s Birthday (lunar dates); and

• National Day (December 2–3).

These dates impact annual leave planning and broader workforce scheduling across the year. Employers should stay updated as authorities confirm dates closer to each observance.

Strategic takeaways 

The early confirmation of January 1, 2026, as a paid holiday for private-sector workers provides:

• Regulatory clarity for companies planning year-end and start-of-year operations;

• Payroll certainty for HR and finance teams;

• Better workforce engagement by aligning benefits with national standards.

For businesses operating in the UAE, leveraging advance holiday announcements is critical to compliance and operational planning. As the national holiday calendar continues to be refined, employers should integrate official public holidays into annual HR and payroll strategies.