The UAE Ministry of Human Resources and Emiratisation (MoHRE) has set a new minimum wage of AED 6,000 per month for Emiratis in the private sector, effective January 1, 2026, as part of broader labour law enhancements. Key changes include steeper penalties for violations—now up to AED 1 million from previous fines of AED 100,000—covering issues like unauthorized employment and fictitious Emiratisation. Employers must adjust existing Emirati staff salaries by June 30, 2026, with non-compliance risking exclusion from Emiratisation targets and work permit suspensions from July 1. Contracts now require detailed breakdowns of salary, allowances, hours, and leaves, while MoHRE can mandate salary payments during disputes for up to two months. These reforms, building on 2024 amendments, streamline resolutions to 14 days and extend claim periods to two years, prioritizing compliance and Emiratisation.
What this means:
UAE business owners should audit Emirati employee contracts and payroll now to avoid penalties and permit issues. Leverage Nafis subsidies for cost offsets, turning compliance into a competitive edge for talent retention.