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Economists and HR experts say the policy supports Emiratisation by making private-sector roles more attractive to citizens
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While it may increase costs for employers, it is not expected to reduce opportunities for expatriate workers in the short term
The United Arab Emirates (UAE), including Dubai, has announced a major change in private-sector pay rules by setting a minimum wage for Emirati nationals. The move is part of the government’s wider efforts to strengthen labour standards and speed up Emiratisation, a policy aimed at increasing the number of UAE citizens working in the private sector.
From January 1, 2026, Emirati employees in the private sector must be paid a minimum monthly salary of AED 6,000 (around Rs 1.48 lakh). This is an increase from the earlier threshold of AED 5,000 (about Rs 1.23 lakh). The new wage floor will apply to all new, renewed and amended work permits for UAE nationals. Employers must also adjust the salaries of existing Emirati staff to meet the new level by June 30, 2026.
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The government has made it clear that enforcement will be strict. Companies that fail to comply could face penalties from July 1, 2026
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These may include removal from Emiratisation incentive programmes and restrictions on issuing new work permits
However, the new minimum wage does not apply to expatriate workers. This means foreign employees, including the large Indian workforce in the UAE, will not be directly affected by the rule. The UAE still does not have a universal minimum wage for expats, and salaries continue to vary widely depending on sector, skills and contract terms.
That said, the Ministry of Human Resources and Emiratisation provides salary guidelines that many employers follow. These suggest AED 12,000 per month for university graduates, AED 7,000 for skilled technicians with diplomas, and AED 5,000 for skilled workers with secondary education
