UAE Increases Minimum Wage for Emirati Private Sector to $1,635 Starting January 2026
New Minimum Wage Announcement
The United Arab Emirates has officially announced a substantial increase in the minimum wage for Emirati employees working within the private sector. Effective January 1, 2026, the new minimum salary will be set at AED 6,000 per month, equivalent to approximately $1,635. This increase is a significant part of the country’s ongoing Emiratisation strategy, aimed at enhancing employment opportunities and salaries for Emiratis.
Implementation Timeline
According to the Ministry of Human Resources and Emiratisation, the increased minimum salary will apply to all new work permits issued for Emirati nationals, as well as those permits that are renewed or amended starting from 2026. Employers who have existing Emirati employees prior to this date will have until June 30, 2026, to adjust their salaries to meet the new threshold. This timeline allows businesses to properly implement the necessary changes without disruption.
Phased Increase in Salaries
Khalil Ibrahim Al Khouri, the Under-Secretary of Labour Market & Emiratisation Operations at the Ministry of Human Resources and Emiratisation, emphasized that this new minimum wage is part of a phased approach to gradually raise salaries for Emiratis working in the private sector. The initiative has previously begun with a minimum wage of AED 4,000, which was later raised to AED 5,000, and will now culminate at AED 6,000 by 2026.
“The phased increases are designed to reflect market wage conditions based on job roles,” Al Khouri stated. He noted that this strategy provides private sector companies with ample time to implement these changes efficiently.
Compliance and Enforcement Measures
Al Khouri has urged employers to ensure that the employment contracts of Emirati staff are updated in accordance with the new minimum wage before the deadline. By June 30, 2026, all Emirati employees in the private sector must receive a salary of at least AED 6,000 per month. To enforce compliance, several measures will be implemented starting July 1, 2026, targeting establishments that fail to adhere to the new wage requirements.
These measures include disqualifying Emirati citizens earning below the new minimum wage from contributing toward Emiratisation targets. Additionally, any company failing to meet the new salary threshold will face a suspension of new work permits until salaries are appropriately adjusted.
The Role of Emiratisation Programs
Al Khouri credited private sector employers for their ongoing commitment to Emiratisation goals since their inception. This commitment has further been reinforced through initiatives such as the Nafis programme, which includes a digital platform that connects establishments with a diverse pool of qualified Emirati talent. The program offers various incentives and benefits to companies that achieve their Emiratisation objectives, promoting a more integrated approach to employment.
Addressing Market Wage Trends
The updates to the minimum wage reflect a broader trend in the job market, aiming to attract and retain Emirati talent in an evolving economic landscape. With the phased salary increases, the UAE government aims to align wages with market conditions and enhance the overall competitive edge of Emirati nationals within the private sector.
Looking Ahead
As the UAE continues to develop its Emiratisation strategy, the government is committed to ensuring that salaries for Emirati nationals are not only competitive but also sustainable. The planned increases in minimum wage are critical to achieving long-term goals related to national employment rates and economic diversification.
By implementing these changes, the UAE aims to solidify its position as a leader in promoting job opportunities for Emiratis within the private sector, ensuring that they receive fair compensation for their contributions to the economy.
Published on 1767316452 • Category: Jobs,Emiratisation,Ministry of Human Resources and Emiratisation (MoHRE),MOHRE,Private sector,Salary,Wages