Starting January 1, 2026, the UAE Ministry of Human Resources and Emiratisation (MoHRE) has set a new minimum wage of Dh6,000 per month for Emirati employees in the private sector. If your company employs Emiratis, this isn’t just a number, it’s a compliance requirement that affects payroll, contracts, and Emiratisation quotas. Missing this deadline can lead to penalties, suspended work permits, and even reputational risks.
Who Needs to Follow This Rule?
The new Dh6,000 minimum wage applies only to Emirati employees in the private sector, including:
- Employees hired before January 1, 2026
- New hires after January 1, 2026
- Renewals or amendments of work permits starting January 1, 2026
Expatriate employees are not affected.
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What’s the New Minimum Wage?
- Basic salary: Dh6,000 per month
- Allowances and bonuses: Not included
To give you context, the minimum salary has been increasing steadily:
- 2024: Dh4,000
- 2025: Dh5,000
- 2026: Dh6,000
This is basic salary only, so make sure your allowances, housing, and other benefits remain separate in contracts.
Need help adjusting salaries and contracts? Our Payroll services make the process smooth and error-free.
Compliance Deadline
All contract updates and salary adjustments must be completed by June 30, 2026.
- Penalties will start from July 1, 2026
- Payroll systems and employee contracts must reflect the new minimum wage
Penalties for Non-Compliance
Non-compliance has real consequences:
- Employees earning below Dh6,000 won’t count toward your Emiratisation quotas
- Company-level penalties: Suspension of new work permits until salaries are corrected
- Notifications: MoHRE smart app alerts employers directly
Avoid work permit suspensions with automated HR & Payroll solutions. Find out how.
Step-by-Step Compliance Guide
Here’s how to ensure your company stays compliant:
- Identify all affected Emirati employees
- Review current salaries and contracts
- Amend contracts to meet Dh6,000 minimum
- Update payroll systems and calculate allowances separately
- Submit changes via MoHRE system (optional with PRO support)
- Monitor alerts and notifications
Strategic Considerations
Raising salaries isn’t just about compliance, it’s a chance to optimize your HR strategy:
- Align increases with Emiratisation quotas and hiring plans
- Budget for salary adjustments and allowances
- Consider performance-linked incentives to motivate employees
Why Compliance Benefits Employers
Following the minimum wage rules doesn’t just avoid penalties—it offers tangible benefits:
- Employees count toward Emiratisation quotas
- Avoid work permit suspensions and administrative fines
- Strengthen your company’s reputation as Emirati-friendly
Key Dates to Remember
| Event | Date |
|---|---|
| Minimum salary effective | 1 January 2026 |
| Compliance deadline | 30 June 2026 |
| Penalties effective | 1 July 2026 |
Frequently Asked Questions
Q: Does this apply to expatriate employees?
No. Only Emiratis in the private sector.
Q: Do allowances count toward the Dh6,000 minimum?
No, only the basic salary counts.
Q: What happens if we miss the deadline?
Non-compliance leads to Emiratisation quota exclusion and work permit suspension.
Need Professional Assistance?
Get in touch with our team for reliable guidance and support.
We are here to help you every step of the way.
Bottom line
The Dh6,000 minimum wage is non-negotiable for Emirati employees. Start early, update contracts, and adjust payroll systems to avoid penalties and support your Emiratisation goals. With the right HR, Payroll, and PRO support, compliance is seamless and stress-free.
Still have questions? Contact our HR consultants, we provide clear, step-by-step guidance – reach out here.
