Abu Dhabi, UAE, The United Arab Emirates will set a minimum monthly wage of Dh6,000 for Emirati citizens working in the private sector starting January 1, 2026. This represents a significant shift in the country’s labor policy, altering the way people are compensated and demonstrating the government’s commitment to achieving long-term Emiratisation goals.
This isn’t just a number on a page. It’s a policy change that will have real effects on employers, employees, and the job market as a whole. It could even have effects beyond paychecks.
What the New Minimum Wage Rule Means
The Ministry of Human Resources and Emiratisation (MoHRE) officially announced the rule on its digital platforms in late December. It said that starting in 2026, no Emirati’s salary in the private sector can be less than Dh6,000 per month.
What Employers Should Know
- Effective date: January 1, 2026
- Who it applies to: Emirati citizens working in the private sector in all fields
- Salary processing: Any work permit application that lists a salary below Dh6,000 will not be processed or issued
If you’re wondering why this is important, it’s because the UAE didn’t have a formal nationwide minimum wage that applied to all private-sector workers. This has long set the country apart from many other labor markets around the world.
However, this new limit alters the landscape for Emirati workers in particular, making it increasingly crucial for companies to carefully design their pay packages as they strive to attract and retain national talent.
Timeline: How We Got Here
To really understand this change, it’s helpful to look at the bigger picture:
- Before 2025: The UAE did not have a formal minimum wage for private-sector workers, including citizens. Salaries were usually set through negotiation, market demand, qualifications, and skill levels.
- 2025: Emiratisation continued to develop, with new quotas and rules. Companies that didn’t meet Emiratisation goals had to pay fines.
- December 27, 2025: MoHRE issued a notice setting Dh6,000 as the minimum salary for Emiratis, making the minimum wage official from January 1, 2026.
The push for Emiratisation has existed for years. Previous programs like Nafis and yearly targets for increasing the number of Emiratis in skilled jobs helped shape a more structured labor strategy.
Why Dh6,000?
At first glance, it might seem arbitrary, but the number is based on economic planning, living costs, and strategic labor considerations. Dh6,000 aligns with the cost of living and ensures Emirati professionals in the private sector receive fair compensation.
In a country where wages have historically been decided by agreement rather than legislation, this new baseline marks a shift toward a more regulated wage system. It does not apply to expatriate workers, whose salaries are still set by contracts and industry standards, nor does it create a universal UAE minimum wage.
What This Means for Employers
Businesses across the UAE, from small companies to multinational corporations, must take note:
No work permits will be issued for Emirati workers earning below Dh6,000 after January 1, 2026.
Automated notifications will be sent via MoHRE channels to help companies adjust pay structures.
Companies not compliant by mid-2026 may face consequences. After June 30, 2026, non-compliance can affect Emiratisation calculations and prevent new work permits.
In simple terms, companies must ensure Emirati employees earn at least Dh6,000 per month through verifiable payroll systems, not just on paper.
It’s a major step linking wage standards with hiring policies, and businesses cannot ignore it.
The Bigger Push for Emiratisation
This wage floor is part of a wider Emiratisation strategy aimed at boosting national participation in the private sector.
Long-term goals require companies of a certain size to gradually increase Emirati representation, aiming for a 10% Emiratisation rate by 2026.
These goals came with penalties for non-compliance and benefits for companies that exceeded expectations. Now, the minimum wage adds a new “compensation guarantee” to support those efforts.
What This Means for Workers in the UAE
A formal wage floor may improve job stability and income predictability for Emirati citizens, important in a high-cost economy.
Workers who might have accepted lower pay now have a legal minimum, strengthening both financial security and social fairness. It helps ensure workforce growth aligns with fair pay practices.
While expatriate workers are not directly affected, the shift may influence overall pay structures as employers adjust.
Regional Context: The UAE vs. Global Minimum Wage Trends
It’s useful to compare the UAE’s policy with others:
- Many countries have long-standing minimum wage laws covering all workers.
- The UAE’s rule applies only to Emirati citizens in the private sector, reflecting the country’s demographic and economic objectives.
- Elsewhere, minimum wage adjustments may be tied to inflation or collective bargaining. In the UAE, the focus is on labour market participation and national strategies.
This shows how the UAE blends market-driven salaries with targeted labor policies.
What Comes Next?
As 2026 approaches, experts say companies should begin preparing now.
Employers Must:
• Review existing Emirati salaries
• Update payroll systems to ensure compliance
• Be ready for MoHRE notifications and follow-ups
For workers, it signals that their pay will be anchored at a defined level, with government backing.
Whether this leads to broader minimum wage discussions across other workforce segments remains unknown. But for now, Dh6,000 is the key figure for both employers and Emirati employees.
Important Points
- Minimum wage for Emiratis in the private sector: Dh6,000 per month from January 1, 2026
- Applies to work permits and salary listings; lower-than-minimum salaries won’t be processed
- Forms part of broader Emiratisation policies
- Employers must adjust pay and HR systems to comply
- Workers gain a stable baseline income, promoting financial security
