Who Does the UAE Minimum Wage Apply To

The UAE minimum wage introduced from 1 January 2026 applies only to specific categories of employees and employers. Understanding who is covered and who is excluded is critical for accurate compliance and Emiratisation planning.

This article explains the scope of applicability, common edge cases, and areas where employers often make incorrect assumptions.

Applicability to Employees

The minimum wage requirement applies to:

• Emirati nationals employed in the private sector
• Employees holding MoHRE-governed work permits
• Emiratis counted under Emiratisation localisation programs

The requirement applies irrespective of job title, designation, or seniority, as long as the employment falls under MoHRE jurisdiction.

Applicability to Employers

The rule applies to:

• Private sector establishments registered with MoHRE
• Companies subject to Emiratisation requirements
• Employers issuing, renewing, or modifying Emirati work permits

The size of the organisation or industry classification does not change the applicability of the minimum wage requirement.

Who Is Excluded

The minimum wage does not apply to:

• Expatriate employees of any nationality
• Employees working in the public sector
• Employment categories not governed by MoHRE
• Roles governed under special or separate regulatory frameworks

Employers should avoid extending assumptions meant for Emiratis to expatriate compensation structures.

Applicability to Existing Employees

The minimum wage requirement applies not only to new hires but also to existing Emirati employees.

Employers are expected to align salaries when:

• Work permits are renewed
• Employment details are modified
• MoHRE systems are updated during the transition period

Salary alignment should be completed within the prescribed transition window to avoid enforcement issues.

Part-Time and Contractual Arrangements

MoHRE guidance applies the minimum wage requirement to Emirati employment contracts registered under its systems.

Employers should carefully review:

• Contract type registered with MoHRE
• Salary figures reflected in official records
• Consistency between payroll and regulatory filings

Ambiguities should be resolved proactively to avoid compliance gaps.

Common Misinterpretations

Some frequent misconceptions include:

• Assuming the minimum wage applies to expatriates
• Believing existing employees are exempt
• Treating allowances as automatically compliant without review
• Ignoring MoHRE system alignment

Clarifying applicability early helps prevent last-minute compliance issues.

HR Checklist for Applicability Review

• Identify all Emirati employees on payroll
• Verify MoHRE registration status
• Review contract types and salary records
• Flag employees below the minimum threshold
• Plan salary alignment within transition timelines

FAQs

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

Does the rule apply to existing Emirati employees
Yes. Employers must ensure salary alignment during permit renewals or contract modifications within the transition period.

Are all private sector companies covered
Yes. Any establishment registered with MoHRE and employing Emiratis in the private sector is covered.

Do job roles or seniority affect applicability
No. Applicability is based on employment category and MoHRE registration, not job title.

Related Articles

• UAE Minimum Wage 2026
• Payroll Impact Explained
• Work Permits and Renewals
• Emiratisation Impact
• Penalties and Risks
• HR Systems Readiness

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