Non-compliance with the new wage will result in penalties for private sector establishments starting July 2026
The UAE Ministry of Human Resources and Emiratisation (MoHRE) has revealed that the minimum monthly wage for Emiratis in the private sector will be increased to AED6,000, effective January 1, 2026.
Establishments that hired Emiratis prior to the specified date will also have the opportunity to adjust their salaries to align with the new minimum wage by June 30, 2026.
The Ministry stated in a press announcement that the new minimum wage for Emiratis in the private sector will be applicable to new citizen work permits and those being renewed or altered effective January 1, 2026.
Khalil Ibrahim Al Khouri, under-secretary of Labor Market & Emiratization Operations at MoHRE, highlighted that the higher minimum wage for Emiratis in the private sector aligns with the Emiratization strategy, which takes a phased approach to increasing the minimum wage for citizens in this sector.
He clarified that the strategy started with a minimum salary of AED4,000, then increased to AED5,000, and will now rise to AED6,000 per month, effective from 2026. This gradual adjustment aims to align with current market wages according to job nature and provides private sector establishments adequate time to implement these phased salary increases.
Outlining penalties for non-compliant establishments
Al Khouri also urged companies to update the employment contracts of Emirati employees to reflect the new minimum salary by the June 30, 2026 deadline, emphasizing that all Emiratis in the private sector must earn AED6,000 by that date.
He noted that various measures would be enacted against non-compliant establishments beginning July 1, 2026.These measures will include disqualifying citizens whose salaries remain unchanged from contributing to the Emiratization targets for applicable establishments and suspending new work permits for those companies until they meet the new minimum wage.
Al Khouri praised private sector establishments for their steadfast commitment to Emiratization targets and policies since their inception, highlighting that this dedication has been greatly enhanced by the Nafis programme, particularly its digital platform, which showcases a diverse pool of qualified Emirati talent available for various roles, along with the numerous incentives and benefits provided by the Ministry to organizations meeting their Emiratization goals.
Source: economymiddleeast