[UAE] Minimum wage for Emiratis in private sector rises

In the UAE, the Ministry of Human Resources and Emiratisation (MoHRE) has announced an increase in the minimum wage for Emiratis employed in the private sector to AED 6,000 per month, which came into effect on January 1, 2026, KPMG reports.

The rise will impact new, renewed, and amended work permits for Emirati employees, with a transition period for existing staff.

The AED 6,000 minimum wage is reportedly the latest move of a phased approach by MoHRE, which previously raised the minimum salary for Emiratis from AED 4,000 to AED 5,000, and now to AED 6,000. 

The initiative is part of the UAE’s Emiratisation strategy.

KPMG suggests that companies:

• Audit existing Emirati employee salaries and contracts to identify required adjustments
  

• Update payroll systems and employment documentation to reflect the new minimum wage
  

• Update salary information on the competent pension authority’s portal to reflect an accurate payment
  

• Communicate with Emirati staff regarding upcoming changes to compensation
  

• Monitor MoHRE updates and leverage support programmes such as Nafis to facilitate compliance and talent acquisition

Further changes to quotas or incentives may be announced, but no additional measures are specified in the current materials. Penalties for non-compliance will be in effect from July 1, 2026.

Source: KPMG

In the UAE, the Ministry of Human Resources and Emiratisation (MoHRE) has announced an increase in the minimum wage for Emiratis employed in the private sector to AED 6,000 per month, which came into effect on January 1, 2026, KPMG reports.

The rise will impact new, renewed, and amended work permits for Emirati employees, with a transition period for existing staff.

The AED 6,000 minimum wage is reportedly the latest move of a phased approach by MoHRE, which previously raised the minimum salary for Emiratis from AED 4,000 to AED 5,000, and now to AED 6,000. 

The initiative is part of the UAE’s Emiratisation strategy.

KPMG suggests that companies:

• Audit existing Emirati employee salaries and contracts to identify required adjustments
  

• Update payroll systems and employment documentation to reflect the new minimum wage
  

• Update salary information on the competent pension authority’s portal to reflect an accurate payment
  

• Communicate with Emirati staff regarding upcoming changes to compensation
  

• Monitor MoHRE updates and leverage support programmes such as Nafis to facilitate compliance and talent acquisition

Further changes to quotas or incentives may be announced, but no additional measures are specified in the current materials. Penalties for non-compliance will be in effect from July 1, 2026.

Source: KPMG