UAE Minimum Wage 2026

The UAE has announced a revised minimum wage requirement for Emirati employees working in the private sector. Effective from 1 January 2026, this change forms part of the country’s broader Emiratisation and workforce localisation framework.

The update directly affects salary structures, payroll compliance, work permit approvals, and Emiratisation calculations. Employers are expected to review existing arrangements and align internal systems within the prescribed transition period.

Overview of the Minimum Wage Update

The minimum wage for Emirati citizens employed in the UAE private sector has been set at AED 6,000 per month, effective 1 January 2026. The requirement applies during:

• Issuance of new work permits for Emirati employees
• Renewal of existing citizen work permits
• Modification of employment details registered with MoHRE

This revision replaces the earlier minimum wage threshold applicable to Emiratis in the private sector.

Applicability Scope

The minimum wage requirement applies to:

• Emirati nationals employed in the private sector
• Employees registered under MoHRE governed work permits
• Establishments covered under Emiratisation policies

It does not apply to:

• Expatriate employees
• Public sector employment
• Employment categories outside MoHRE jurisdiction

Further details are explained in Who Does It Apply To

Implementation Timeline

MoHRE has provided a transition window for employers to align with the new requirement.

• From 1 January 2026, the minimum wage requirement becomes effective.
• Between January and June 2026, employers are expected to revise salaries where required.
• From 1 July 2026, enforcement actions may apply for non-compliant establishments.

Employers are advised to complete salary adjustments within this window to avoid operational and compliance risks.

Work Permits and Compliance Impact

Minimum wage compliance directly influences:

• Approval and renewal of Emirati work permits
• Employer standing within MoHRE systems
• Emiratisation localisation calculations

Failure to align salaries with the mandated threshold may result in blocked permits or exclusion of affected employees from localisation metrics.

Related reading:

• Work Permits and Renewals
• Penalties and Risks

Payroll and Salary Structure Considerations

HR teams should review:

• Existing salary structures for Emirati employees
• Alignment between payroll data and MoHRE records
• Budgetary impact of the revised wage threshold

Even minor inconsistencies between payroll systems and government records can lead to compliance issues during audits or permit renewals.

More details are covered in Payroll Impact Explained

Impact on Emiratisation Planning

The revised minimum wage reinforces the need for:

• Sustainable Emirati hiring strategies
• Accurate workforce cost planning
• Long-term talent retention

Employers treating Emiratisation as a short-term compliance requirement may face recurring operational challenges if wage planning is not aligned with regulatory expectations.

Further reading: Emiratisation Impact

HR Systems Readiness

As compliance requirements become increasingly interconnected, manual tracking increases risk.

HR systems should be capable of:

• Tracking Emirati salaries against regulatory thresholds
• Monitoring permit timelines and compliance status
• Maintaining accurate records for audits and inspections

This is discussed further in HR Systems Readiness

HR Checklist for Minimum Wage Compliance

• Review current Emirati salary structures
• Identify gaps against the AED 6,000 threshold
• Update payroll and MoHRE records consistently
• Monitor work permit renewal timelines
• Align Emiratisation planning with revised wage requirements

FAQs

Does the minimum wage apply to expatriate employees
No. The revised minimum wage applies only to Emirati nationals employed in the private sector.

Is the minimum wage applicable to existing employees
Yes. Employers must ensure salaries meet the minimum threshold during permit renewals or modifications within the transition period.

What happens if employers do not comply by July 2026
Non-compliance may result in blocked work permits and exclusion from Emiratisation localisation calculations.

Does the minimum wage include allowances
Employers should structure salaries in line with MoHRE guidance. Payroll structuring considerations are discussed in the payroll impact article.

Related Articles

• Who Does It Apply To
• Payroll Impact Explained
• Work Permits and Renewals
• Emiratisation Impact
• Penalties and Risks
• HR Systems Readiness

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