The UAE has announced a significant labour market reform aimed at strengthening Emiratisation and improving income security for UAE nationals employed in the private sector. The Ministry of Human Resources and Emiratisation (MoHRE) has confirmed that a minimum monthly wage of Dh6,000 will be mandatory for Emirati employees in private companies, effective 1 January 2026.
The decision forms part of the UAE’s broader workforce nationalisation strategy and reflects ongoing efforts to enhance job quality and long-term career sustainability for Emiratis outside the public sector.
Overview of the New Minimum Wage Requirement
Under the new policy, Dh6,000 becomes the minimum permissible salary for Emirati citizens working in the private sector. MoHRE will not process work permit applications for Emiratis where the stated salary falls below this threshold.
The requirement applies to two-year Emirati work permits, including:
- New permit applications
- Permit renewals
- Amendments to existing permits
Employers must ensure that employment contracts and payroll records accurately reflect the revised minimum wage.
Implementation Timeline and Enforcement
MoHRE has indicated that employers will receive automated alerts through its digital service platforms to notify them of the updated requirement and any necessary corrective action.
Where an Emirati employee’s salary is not adjusted to Dh6,000 by 30 June 2026, further measures will take effect from 1 July 2026, including:
- Exclusion of the employee from Emiratisation quota calculations
- Restrictions on the issuance of new work permits for non-compliant establishments
These measures are designed to ensure effective enforcement and prevent circumvention of Emiratisation objectives.
Implications for Private Sector Employers
The introduction of a statutory minimum wage for Emiratis has direct implications for private sector businesses across all industries. Employers will need to:
- Review existing employment contracts with Emirati staff
- Adjust salary structures and payroll systems where required
- Align Emiratisation reporting with MoHRE’s revised eligibility criteria
- Plan workforce and cost structures ahead of the 2026 deadline
Failure to comply may lead to administrative delays, permit processing restrictions, and potential impacts on a company’s Emiratisation standing.
The UAE has steadily expanded its Emiratisation framework in recent years, introducing quotas, incentives, and compliance mechanisms to increase national participation in the private sector. The Dh6,000 minimum wage requirement complements these initiatives by ensuring that Emirati employment is both meaningful and financially sustainable.
Business and Legal Considerations
From a legal and compliance perspective, businesses should take early steps to assess their exposure under the new rule. Contract amendments, internal policy updates, and payroll restructuring may be required to ensure alignment with MoHRE regulations before enforcement begins.
