Other BriefingsUAE Raises Minimum Wage for Emiratis in the Private Sector to AED 6,000 from January 2026
The UAE has raised the minimum wage for Emirati employees working in the private sector to AED 6,000 per month effective January 1, 2026. MoHRE has called on companies to review and amend employment contracts of Emirati employees to ensure full compliance ahead of the implementation deadline – June 30.
The UAE Ministry of Human Resources and Emiratization (MoHRE) has announced a further increase in the minimum wage for Emirati employees working in the private sector, raising it to AED 6,000 per month effective January 1, 2026. The move continues the UAE’s phased Emiratization wage strategy and aims to enhance labor market competitiveness while strengthening incentives for citizens to join private sector roles.
The revised wage threshold applies to all new work permits for Emirati employees, as well as contract renewals and amendments processed from January 1, 2026, onward.
Private sector establishments employing Emiratis prior to this date will be granted a transition period to align salaries with the new minimum wage. Companies must complete salary adjustments no later than June 30, 2026.
Emirati minimum wage hike in the private sector: Part of a gradual wage alignment strategy
The Ministry stated that the increase forms part of a structured and incremental wage enhancement plan designed to reflect evolving market dynamics and promote sustainable Emirati workforce participation in the private sector.
His Excellency Khalil Ibrahim Al Khouri, Undersecretary of Labor Market & Emiratization Operations at MoHRE, explained that the minimum wage strategy has been implemented in phases:
- Initial minimum wage set at AED 4,000
- Later increased to AED 5,000
- Now rising to AED 6,000 per month effective 2026
The phased approach, he noted, is intended to align wage levels with market benchmarks, sectoral roles, and job functions, while ensuring private sector organizations are given adequate time to plan and budget for adjustments.
Compliance timeline and obligations
MoHRE has called on companies to review and amend employment contracts of Emirati employees to ensure full compliance ahead of the implementation deadline.
Key compliance milestones include:
- January 1, 2026
New wage applies to new, renewed, or amended contracts. - By June 30, 2026
All Emiratis in the private sector must receive at least AED 6,000 per month. - From July 1, 2026
Enforcement and compliance measures will begin.
Contracts must be formally updated to reflect revised salaries within the grace period provided.
Penalties for non-compliance with wage policy from July 2026
From July 1, 2026, MoHRE will introduce measures targeting establishments that fail to adjust Emirati employee salaries in accordance with the new requirement.
According to the Ministry, consequences for non-compliance will include:
- Excluding affected Emirati employees from counting toward mandatory Emiratization quotas and targets
- Suspension of new work permits for non-compliant establishments until wage alignment is verified
The approach reinforces MoHRE’s broader policy objective of ensuring Emiratization initiatives are implemented substantively and not solely for quota compliance.
Support from Nafis Program and private sector engagement
The Nafis Program and its digital talent platform has played a key role in strengthening labor market participation among UAE nationals. The platform provides companies with access to a wide pool of qualified Emirati candidates and offers incentives and benefits for firms that actively meet their Emiratization targets.
MoHRE has indicated that the new wage policy complements existing measures designed to promote long-term and meaningful citizen participation in the private sector workforce.
What the 2026 minimum wage policy means for UAE employers
The revised wage threshold is expected to influence workforce planning, budgeting, and HR compliance frameworks across sectors employing Emirati nationals.
Key operational considerations for companies include:
✔ Salary budget alignment
Businesses employing Emiratis should plan for:
- Salary adjustments within the transition window
- Cost implications across multiple Emirati roles
- Alignment between wage structures and job grades
Ensuring consistency across similar job categories will likely become part of internal audit and HR compliance exercises.
✔ Contract and payroll updates
Employers will need to:
- Amend existing contracts to reflect new wage minimums
- Update HR and payroll systems
- Ensure MoHRE filings reflect revised salary data
Failure to update contracts may result in Emirati hires being excluded from Emiratization quota recognition.
✔ Emiratization strategy integration
The minimum wage revision may encourage:
- Re-evaluation of hiring plans for 2026
- Greater focus on career-aligned roles for Emirati professionals
- Enhanced participation in Nafis-supported hiring initiatives
For companies covered by Emiratization quota policies, ongoing compliance alignment will remain a strategic HR priority.
Broader policy context
The wage increase is positioned as a continuation of the UAE’s wider labor market modernization agenda, which aims to:
- Strengthen talent retention in private sector industries
- Reduce wage-based distortions between public and private sectors
- Encourage career mobility and competitive job creation for Emirati professionals
By introducing gradual adjustments rather than abrupt policy changes, MoHRE seeks to balance employer readiness with long-term workforce development goals.
Emiratization targets: What UAE employers must achieve in 2026
Under the UAE’s national workforce policy, private sector companies are required to increase the proportion of Emirati nationals in skilled jobs annually:
- For larger employers (50+ employees)
- Required to achieve 2 percent annual growth in the number of Emiratis hired in skilled roles.
- For medium employers (20–49 employees in specified sectors)
- Required to recruit a minimum number of UAE nationals (e.g., one or two hires by set deadlines) as part of staged Emiratization requirements.
Targets are verified periodically, with deadlines such as June 30 and December 31 to reach specified growth rates in Emirati employment.
The long-term ambition of this strategy is for private sector Emiratization to reach approximately 10 percent by the end of 2026, reflecting the UAE’s national workforce development objectives. Companies that fail to meet their quota obligations can face financial penalties, operational restrictions, and compliance sanctions.
Unsure how the new wage rules and quota enforcement will affect your UAE operations?
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