UAE Announces Salary Increase, Sets New Minimum Wage for Private Sector

3 Min Read

UAE(The COW News Digital)The United Arab Emirates has announced a significant salary increase for Emirati employees in the private sector, setting a new minimum wage of 6,000 dirhams per month, in a move described as a New Year gift aimed at strengthening workforce protection and economic stability.

According to Arab media reports, the decision will take effect from January 1, 2026, and applies exclusively to UAE nationals employed in the private sector. The announcement was made by the Ministry of Human Resources and Emiratisation (MoHRE), which described the measure as part of broader efforts to support Emiratis and enhance their participation in the private workforce.

In an official statement, the ministry confirmed that the minimum salary requirement will be mandatory for the issuance, renewal or amendment of citizen work permits. Employers will not be allowed to apply for or maintain a valid work permit for Emirati employees if the registered salary is below 6,000 dirhams.

The regulation will apply specifically to two-year work permits, whether newly issued, renewed or modified. Authorities emphasized that compliance will be closely monitored through the ministry’s digital systems.

MoHRE further clarified that employers will be given a grace period to align salaries with the new requirement. Companies that fail to adjust wages by June 30, 2026, will face disciplinary action starting July 1, 2026. Penalties may include restrictions or bans on companies that continue to pay Emirati employees less than the mandated minimum wage.

The ministry said the move reflects the UAE government’s commitment to ensuring fair wages, job stability and improved working conditions for citizens in the private sector. It also aims to make private-sector employment more attractive to Emiratis, in line with the country’s long-term Emiratisation strategy.

This latest increase follows an earlier decision that set the minimum salary for Emiratis at 5,000 dirhams starting January 1, 2025. The new adjustment represents a further step toward narrowing wage gaps and supporting citizens amid rising living costs.

Experts say the decision could encourage more Emiratis to seek opportunities in the private sector, traditionally dominated by expatriate workers. At the same time, it places additional responsibility on employers to ensure compliance with labour regulations.

The UAE government has repeatedly stated that it will adopt a zero-tolerance approach toward violations of labour laws, particularly those affecting citizens’ rights and financial security.

As the new year begins, the salary increase is being widely viewed as a positive signal for Emirati workers and a reinforcement of the country’s commitment to balanced economic growth and social protection.

- Advertisement -
Share This Article
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *