New Minimum Wage Rules for Emiratis Unveiled

Minimum Wage in the Emirates: New Regulations for Emirati Citizens in the Private Sector Starting 2026

The United Arab Emirates has reached another milestone in labor market reforms. Starting January 1, 2026, a mandatory minimum wage will be introduced for Emirati citizens working in the private sector, set at 6,000 dirhams per month. The decision was announced by the Ministry of Human Resources and Emiratisation (MOHRE), with the aim of strengthening citizens' economic security and encouraging local workforce participation in the private sector.

Background of the Minimum Wage Determination and Introduction

The new regulation first appeared in the MOHRE's digital application at the end of December 2025 and was later confirmed on the X platform. According to the official announcement, the 6,000 dirham minimum wage applies to any Emirati working in the private sector whose work permit is issued, renewed, or modified after January 1, 2026.

The introduction has multiple goals. On one hand, it aims to prevent companies from underpaying Emirati workers, while the government also seeks to make the private sector more attractive to local citizens. Previously, it was common for Emiratis to prefer working in the public sector, where positions were viewed as more secure, stable, and lucrative.

Mandatory Compliance and Consequences

The new rule strictly regulates the process of issuing work permits. Starting January 1, 2026, employers cannot submit or print any application for an Emirati's work permit, whether for new, extended, or modified permits, if the associated monthly salary is below 6,000 dirhams. The ministry will send a warning to employers via the MOHRE application, indicating that if the salary does not meet the required level, the application process will be denied.

According to the regulation, employers must resolve wage issues by June 30, 2026, at the latest. If not resolved by July 1, 2026, the ministry will enforce measures. These include excluding the specific Emirati worker from the Emiratisation quota calculation and restricting the employer from issuing new work permits until they comply with the wage regulation.

Applicable to Two-Year Work Permits

It's important to note that the 6,000 dirham minimum wage applies exclusively to work permits valid for two years. These can be new, extended, or modified permits, but must be issued after January 1, 2026.

Through this regulation, the Emirates aims to further strengthen social responsibility towards its citizens while striving to balance labor market dynamics and foster a competitive private sector.

Background: 2025 Minimum Requirements

It is worth noting that this is not the first instance where the state has imposed minimum wage requirements. The MOHRE previously indicated that starting January 1, 2025, every newly hired Emirati must be provided with a minimum salary of 5,000 dirhams. Companies failing to comply faced measures such as suspension from the Emiratisation goals and restrictions on hiring new employees until wages were adjusted.

This current increase is not only another step forward but also a more decisive message to employers: the private sector must provide competitive and fair conditions for Emiratis in the long run.

What Does This Mean for Companies?

The introduction of the new minimum wage is a clear signal to companies that managing the workforce no longer means just recruitment, but also retention and financial appreciation have become critical factors. Companies failing to adapt to the new conditions in time will not only face legal consequences but might also lose their status in Emiratisation quotas, placing them at a significant competitive disadvantage.

For businesses, developing a proper wage structure becomes a strategic issue, especially for those companies heavily relying on an Emirati workforce for service provision.

Social Impact and Future Outlook

The new regulation marks a milestone not only economically but socially as well. It strengthens the presence and appreciation of Emirati citizens in the private sector and can contribute to increased social cohesion in the long term. Simultaneously, it is expected that more young people will choose the private sector as a career path, especially if they find competitive wages and development opportunities there.

Conclusion

The introduction of a 6,000 dirham minimum wage for Emirati workers opens a new era in the labor market. With this decision, the United Arab Emirates aims not only to enhance the financial security of its citizens but also to boost the private sector's competitiveness on the path to a more balanced and fair labor market. Timely adaptation and wage adjustments are now not just an option but a statutory obligation, which becomes a fundamental condition for the long-term operation of companies.

(Source of the article: Based on a Ministry of Human Resources and Emiratisation statement.)