Executive summary

On 31 December 2025, the United Arab Emirates (UAE) Ministry of Human Resources and Emiratisation (MoHRE) announced an increase in the minimum monthly salary for Emirati nationals employed in the private sector from 5,000 Emirati Dirham (AED5,000) to AED6,000, effective 1 January 2026.

By 30 June 2026, employers must adjust the salaries for Emiratis hired before 1 January 2026. From 1 July 2026, noncompliant establishments will face penalties, including exclusion of affected Emiratis from Emiratisation targets (i.e., for private companies to employ Emirati nationals) and suspension of new work permits until the salaries are corrected.

Detailed discussion

As part of the UAE's ongoing Emiratisation strategy, the MoHRE has been gradually increasing the minimum salary requirement for UAE nationals working in the private sector.

The starting salary initially began at AED4,000 per month. It was increased to AED5,000 in the previous phase. Effective 1 January 2026, it will be increased to AED6,000.

This incremental approach aligns salary requirements with prevailing labor market wage averages and supports businesses in adapting progressively to Emiratisation requirements.

The new minimum salary requirement applies to all work permits issued, renewed or amended for Emirati employees from 1 January 2026 onward.

Highlights of the salary adjustment

New minimum salary: Emirati employees in the private sector must receive at least AED6,000 per month starting 1 January 2026.

Applicability: The salary adjustment applies to:

• Emiratis employed in the private sector
• New Emirati hires from 1 January 2026
• Renewals or amendments of existing Emirati work permits from 1 January 2026

Emirati employees hired before 1 January 2026 must have their salaries updated no later than 30 June 2026.

Noncompliance penalties (effective 1 July 2026): The MoHRE will implement several measures against establishments that fail to increase Emirati employees' salaries to the required minimum. The affected Emirati employees will not be counted toward Emiratisation quotas. The establishment will face a suspension of new work permits until new salary adjustments are completed.

Actions from employers

The MoHRE requires employers to:

• Review current Emirati employee contracts and payroll structures before 1 January 2026.
• Amend employment contracts for Emirati nationals earning less than AED6,000 per month between 1 January and 30 June 2026.
• Update salary information with the MoHRE through the work permit amendment process.

Internal compliance considerations for private companies include:

• Ensuring that the updated salaries are reflected with the relevant pension authority (General Pension and Social Security Authority (GPSSA) or Abu Dhabi Pension Fund (ADPF)) according to their update cycle and pay contributions
• Confirming that the new salaries are processed through the Wage Protection System (WPS) to avoid system blocks or penalties
• Aligning human resources and payroll systems to implement changes accurately to reflect increased costs and ensure compliance

Implications

Failure to implement the required salary increases will directly affect Emiratisation targets and may lead to financial penalties and delays in obtaining new work permits for employers. In addition, maintaining compliance ensures continued access to Nafis support programs and MoHRE incentives, in line with recruitment strategies and workforce localization planning.