UAE Private Sector Has Until June 30 to Comply with AED 6,000 Emirati Minimum Wage

The grace period ends June 30. Employers who have not yet adjusted Emirati salaries face permit suspensions and loss of Emiratisation credit from July 1.

| Written by Tripti Mehta

The Ministry of Human Resources and Emiratisation (MoHRE) announced an increase in the minimum wage for Emiratis employed in the private sector to AED 6,000 per month, effective January 1, 2026, with establishments that employed Emiratis before that date given until June 30, 2026 to adjust salaries to meet the new threshold.

The new minimum wage applies to new citizen work permits as well as those being renewed or amended from January 1, 2026 onwards. For existing employees, June 30 is the hard deadline.

The AED 6,000 figure represents the latest stage in 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 gradual adjustment is designed to align wage levels with market benchmarks while giving private sector employers sufficient time to plan.

What Happens on July 1

If a citizen's salary is not updated by June 30, 2026, two measures take effect from July 1:

• The citizen will not be counted in Emiratisation ratios until the salary is adjusted

• A restriction will be applied to the establishment, suspending new work permits for citizens with salaries below AED 6,000

Importantly, the salary threshold operates as a separate enforcement layer from headcount quotas. Even companies meeting their Emiratisation headcount targets will lose Emiratisation credit for any Emirati paid below AED 6,000, and the two penalty regimes compound rather than substitute for one another.

What Employers Must Do Now

MoHRE has called on establishments to amend employment contracts of Emirati employees to reflect the new minimum salary before June 30.

Source: MoHRE; KPMG Flash Alert 2026-006; Middle East Briefing; UAE Government official portal