The Ministry of Human Resources and Emiratisation (MoHRE) has officially announced a significant update to the UAE's Emiratisation strategy. Effective 1 January 2026, the minimum wage for Emirati nationals employed in the private sector has been increased to AED 6,000 per month.
This move is part of a phased government initiative designed to enhance the competitiveness of UAE nationals in the workforce and align private sector compensation with current market standards.
Key Deadlines for Employers
While the law took effect on the first of the year, MoHRE has provided a grace period for businesses to bring existing contracts into compliance:
1 January 2026
New minimum wage applies immediately to all new work permits, renewals, and contract amendments.
30 June 2026
Final deadline for establishments to adjust the salaries of Emiratis employed prior to 2026.
1 July 2026
Commencement of enforcement measures and penalties for non-compliant firms.
The Phased Approach to Salary Growth
His Excellency Khalil Ibrahim Al Khouri, Undersecretary of Labour Market & Emiratisation Operations, noted that this increase is the latest step in a strategic, staggered rollout. The minimum wage has evolved as follows:
This gradual increase allows private sector establishments to plan their budgets effectively while ensuring that Emirati talent receives fair compensation based on the nature of their roles.
Risks of Non-Compliance
Establishments that fail to update employment contracts by the 30 June 2026 deadline face strict administrative actions, including:
Emiratisation Target Exclusion
Employees with sub-minimum salaries will no longer count toward the firm's mandatory Emiratisation targets.
Permit Suspension
The Ministry will suspend the issuance of new work permits for non-compliant companies until all salaries meet the AED 6,000 threshold.
Supporting Emirati Talent
MoHRE continues to encourage businesses to leverage the Nafis programme and its digital platform to find qualified Emirati candidates. This ecosystem, combined with Ministry incentives, aims to create a sustainable and high-performing national workforce within the private sector.
For the official announcement and further details, you can visit the MoHRE Media Center.
How HRX360 Can Help
Need help auditing your payroll for compliance? Our experts at HRX360 can help you navigate these updates to ensure your establishment remains compliant with the latest UAE Labour Laws.
HRX360 helps you:
Audit Emirati employee salaries against the new AED 6,000 minimum
Generate compliance reports for MoHRE submissions
Set automated alerts for contract renewal deadlines
Track Emiratisation targets alongside payroll compliance
Stay Compliant with UAE Labour Laws
Let HRX360 help you navigate payroll compliance and Emiratisation requirements