UAE Sets AED 6,000 Minimum Wage for Emiratis in the Private Sector

In early 2026, the United Arab Emirates (UAE) made one of the biggest alterations to its labour market system a compulsory minimum wage of AED 6,000 every month on Emirati nationals working in the private sector. The new minimum salary threshold, which was announced by the ministry of human resource and Emiratisation (MoHRE) , is to reinforce the active participation of the national workforce, equitable payment of the citizens, and the effectiveness of Emiratisation policies. 

What’s Changing?

Starting January 1, 2026, a new, renewed, or amended work permit of any Emirati employee in the private sector should be accompanied by a monthly salary of not less than AED 6,000. MoHRE corroborated this requirement via official media and extensively covered it in the UAE news. 

The private sector employers have a grace period up till June 30, 2026 where the current employers would have to increase the salaries to the new minimum in case they are lower. Since that date, a series of enforcement actions will commence. 

A Gradual, Phased Policy

The AED 6,000 minimum wage will be included in a gradual progression of wage increment of Emirati workers in the private sector. In previous years:

When the policy was initially launched, the minimum was AED 4,000. Later raised to AED 5,000 ,And now to AED 6,000 from 2026. 

According to government officials, such a gradual strategy will provide employers with enough time to adapt and be in line with the current market remunerations and job requirements among Emirati employees. 

Reasons This Is Important Economic and Social Impact.

1. Empowering Emiratisation Objectives.

Emiratisation strategy is a long term plan in the UAE that aims at enhancing the involvement of Emirati nationals in the privatized business. The policy is also expected to make employment in the private sector more appealing and economically feasible to the citizens as it guarantees a minimum wage that is associated with the expected living standards and assists in decreasing the dependence on the public-sector jobs. 

Based on the recent government statistics, over 152,000 Emiratis will have been employed in the private sector by mid 2025, across thousands of firms around the nation. This is an indicator of a long-term improvement in the policies of Emiratisation that have been designed to support wages, quotas, and incentive programmes. 

2. Improving Job Security and Compensation.

A minimum wage will ensure that Emirati workers are not exposed to low-paying jobs in a labour market that does not have a formal salary threshold for all classes of workers. Although the general rate of wages in the UAE differs greatly among occupations, the establishment of a sector-specific minimum wage among citizens helps to bring income stability, professional sustainability, and economic involvement. 

Though this is at present restricted to Emirati nationalities exclusively, rather than expatriate workers, it is still a big stride in standardisation of compensation in a labour market in which compensation was traditionally bargained on an ad-hoc basis, and where a legally stipulated minimum pay does not exist.

3. In line with Greater Labour Reform Trends.

The minimum wage policy is an addition to various labour reforms that the UAE has been engaged in over the past few years such as changes to employment law, workplace rights, incentives to foster skills development and workforce participation by nationals. These reforms are the manifestation of the wider interest in modernising the economy and equipping it with the future challenges.

Time Limits and Compliance – What Employers Must Learn.

The schedule of the adaptation to the new wage rule is obvious:

• January 1, 2026 – minimum salary will increase to AED 6,000 and apply to all new, renewed, or changed work permits of Emiratis. 
• Until June 30, 2026 – the salaries of the current Emirati employees have to be increased to comply with the AED 6,000 threshold. 
• July 1, 2026 enforcement actions begin. 

Any failure to comply is punishable with:

• Exclusion of under-paid Emirati employees from Emiratisation quota calculations, which can affect a company’s compliance rating. 
• Suspension of new work permits for the company until salaries meet the minimum requirement.

The introduction of the new minimum wage will probably be a challenge and opportunity to the UAE private sector:

Challenges

• Cost factors – There might be a necessity to adjust the budgets and compensation plans, especially in smaller and medium-sized enterprises.
• Talent management – The employers will have to make sure that the salary increments are based on job grades, job performance, and market standards.

Opportunities

• Enhanced employee morale –High wages would increase job satisfaction and retention of Emirati employees.
• Talent attraction –An explicit minimum salary can attract more qualified nationals to the privately held positions.
• Enhanced competitiveness –Organizations that are flexible may have an advantage of attracting and keeping all competent locals in the firm.

What this Means Going Forward

The minimum wage of Emiratis is not just that AED 6,000 , it is a strategic policy instrument that will transform the private sector into a more diverse and socially oriented driver of the UAE economy. When the adaptation by the private companies to this rule is considered in the long term, the aim is to create a labour market in which the local talent is flourishing in the presence of worldwide expertise, as a means of economic diversification and national wealth.

The policy is also an indication of a wider transformation of the UAE labour environment, as employers and employee rights are increasingly mediated through organised wage provisions and regulatory systems. With the UAE still polishing its labour policies, the effects of the AED 6,000 minimum wage will be keenly followed by both the employer and employees as well as policy makers.