MoHRE Issues Official 2026 Minimum Wage Announcement for Emirati Staff

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has made a significant amendment to the employers in the private sector at the end of 2025. All Emirati citizens who work in the private sector starting 1 January 2026 will have a minimum monthly income of AED 6,000.

This announcement is in line with the continuous initiatives by the government to enhance Emiratization and equitable and competitive remuneration of national talent. The rule is applicable to all the new, renewed, and amended work permits. Employers should also examine contracts and payrolls that were in force to determine that salaries comply with the new requirement.

Companies have until 30 June 2026 to make necessary adjustments. From 1 July 2026, enforcement measures will begin for businesses that do not comply.

What the AED 6,000 Minimum Wage Means

The new minimum wage replaces the previous AED 5,000 threshold. Over the past few years, MoHRE has gradually increased the salary floor for Emiratis as part of a long-term strategy to improve private sector participation.

From 2026 onward:

• Emirati employees in the private sector must receive at least AED 6,000 per month.
• The rule is linked directly to work permit approvals.
• Existing employees must be aligned before the June 2026 deadline.

This means salary adjustments are not optional. If the declared wage does not meet the required minimum, work permit applications may be rejected or flagged for correction.

Work Permits and Compliance Requirements

One of the most important aspects of this policy is its connection to work permits. MoHRE will review salary details during permit issuance, renewal, or amendment. Any application showing a salary below AED 6,000 will not move forward until corrected.

HR teams should therefore

• Review salary data before submitting permits
• Update employment contracts formally
• Ensure payroll records match contract terms

Since salary payments are monitored through the Wage Protection System (WPS), payroll systems must also reflect the updated minimum wage accurately. Even small inconsistencies between contracts and WPS reporting can create compliance risks.

Also Read: UAE Manpower Supply Licensing: What Every Business Should Know Before Collaboration

What This Update Means for Employers

In the case of businesses, this transformation demands considerate financial and operational planning. It is possible that some companies are already paying more than the new threshold. Other people might have to redesign salary packages to conform.

This is not only about compliance, but it is also about workforce strategy. The aim of the UAE government is to ensure that the employment opportunities in the private sector are more appealing to Emirati professionals, which can be achieved through a competitive and stable remuneration.

Early adjustments will help employers to prevent administrative headaches and last-minute hassles.

Practical Advisory for Employers

A systematic internal review should commence and businesses should start with a smooth transition.

Begin by auditing present Emirati salaries and point out any contracts worth less than AED 6,000. Renew these contracts much earlier than June 2026. Simultaneously, liaise with payroll and HR platforms to make sure that the systems are updated with the new figures.

It is also important to treat this change as part of ongoing compliance management. Regularly monitoring MoHRE updates and integrating changes into HR processes will reduce future risk.

For companies that prefer additional support, working with an Employer of Record (EOR) can help manage payroll adjustments, work permit documentation, and regulatory coordination efficiently.

Timeline to Keep in Mind

The timeline for implementation is clear:

• 1 January 2026: New minimum wage becomes mandatory for permits.
• January to June 2026: Adjustment period for existing employees.
• 1 July 2026: Enforcement measures begin.

Planning according to this schedule will help employers avoid penalties or restrictions.

Supporting Emiratisation

This is not simply a financial update of the wage increase. It belongs to the larger Emiratisation policy in the UAE that is expected to enhance the national involvement in the business world.

With the enhancement of the minimum wage requirement, the government is not only promoting the long-term career development of Emiratis, but it is also promoting economic diversification. This provides businesses with a chance to develop better and more accommodating teams.

Key Advantages for Companies Under the New Rule

Beyond compliance, the updated minimum wage also creates practical benefits for businesses that align early. Companies that plan properly can improve cost control, workforce stability, and regulatory standing. Treating this as a strategic move rather than just a legal requirement can strengthen long-term operations.

• Avoidance of financial penalties: Non-compliant firms may face a monthly fine of AED 6,000 for each Emirati not employed according to required targets.
• Reduced operational costs: Compliant companies can benefit from better MoHRE classifications, including lower work permit fees, while non-compliant firms face higher charges.
• Access to incentives: Meeting Emiratisation targets may qualify businesses for benefits under the Nafis program, which supports local talent hiring.
• Improved talent retention: A structured and competitive wage helps attract and retain skilled Emirati professionals.
• Better workforce planning: The phased salary increase allows companies to adjust HR budgets gradually and maintain a positive compliance record.

Looking Ahead to 2026

The implementation of a minimum wage of AED 6,000 as a compulsory minimum wage for Emirati employees is a major achievement in labor policy within the UAE. To employers, the change also presents strategic opportunities as well as compliance requirements. Businesses that are early entrants, that align their payroll systems with their HR systems, and that incorporate MoHRE requirements in their systems will be the ones that will most likely be in a good position to take advantage of the transition.

At Marmoom Manpower, our business partners provide reliable, compliant, and skilled workforce solutions for businesses across a wide range of industries. Being one of the largest manpower supply companies in the UAE, we assist in ensuring that workforce management is a smooth process and your business is in a compliant position, being well prepared to operate in a competitive and ever-changing regulatory landscape.