Dubai and the UAE in general have made a major step in redefining the pay structure of the private sector by making a notable change in the labour policy of the country. The introduction of a new higher minimum wage among Emirati nationals in the context of a higher minimum wage in the private sector is a step in the right direction. Although the UAE has long been a country without a universal minimum wage, the recent development is a positive sign that the government is becoming increasingly active in promoting Emiratisation, enhancing job quality, and establishing better sources of income among citizens.
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What is the new minimum wage rule?
Since January 1, 2026, the Ministry of Human Resources and Emiratisation (MoHRE) will establish a minimum monthly salary of AED 6,000 for Emirati nationals working in the private sector (as opposed to the previously established minimum of AED 5,000).
The rule applies to:
- New work permits
- Renewed work permits
- Amended work permits
Employers have been given a transition period to do so. The current Emirati workers should have their salaries increased to at least AED 6,000 by June 30, 2026. On July 1, 2026, organizations that misbehave can be sanctioned, such as the lack of new work permits and the inability to occupy Emiratisation quotas.
Who does the rule apply to?
The new minimum wage applies only to UAE nationals who are employed in the privatized sector. It does not go further to expatriate workers who remain beyond a legally entrenched minimum wage regime. This differentiation indicates the traditional UAE labour model, according to which non-nationals’ wages are mostly market-based, being subject to wide ranges based on the industry, the level of skills, and the terms of the contract. The federal labour legislation stipulates that wages should cover the minimum living standards, but no minimum wages are set against expatriates.
Salary guidelines still matter
Despite being non-binding legally, MoHRE payroll rates still affect employment and visa issuances in all sectors. These are the most commonly quoted guidelines, which are:
- University graduates: around AED 12,000 per month
- Skilled technicians (diploma holders): about AED 7,000 per month
- Skilled labour with secondary education: roughly AED 5,000 per month
The raised minimum of AED 6,000 as required to be paid to Emiratis becomes mandatory and supersedes any lower payment offered to citizens in the private sector.
What it means for employers
The change brings operational changes and strategic changes to employers. Payroll systems have to be revised, and contracts reevaluated; the future recruitment strategy has to be adjusted to the new wage floor. Organizations that have a high Emirati labour force might experience increased staffing expenses, especially in the low-level and junior positions.
Nevertheless, HR experts observe that the policy might enhance retention and productivity as well, and thus, the jobs in the private sector can become more competitive in comparison to the government jobs that have been traditionally higher paid and with more benefits.
Impact on workers and the labour market
The policy also serves as a better income reference base and solidifies job security for Emirati staff in the private sector. Economists regard it as a step to improve the confidence of nationals in terms of taking up personal jobs, which facilitates the high-level purpose of integrating citizens into the economic activity of the nation.
The rule does not directly modify salary structures in the case of expatriate workers. Nevertheless, the analysts believe that in the long term, more robust wage structures of nationals may have an impact on the general compensation patterns, particularly in those jobs where expatriates and citizens operate in proximity.
How Dubai salaries compare across sectors
As of 2025–26, average monthly salaries in Dubai vary widely:
- IT and technology: AED 12,000–45,000
- Banking and finance: AED 15,000–65,000
- Healthcare: AED 8,000–60,000
- Construction and engineering: AED 10,000–50,000
- Retail and hospitality: AED 4,000–15,000
The average salary range of an entry-level position is generally between AED 8,000 and 12,000, though in large-growth industries, the level of pay ranges between AED 20,000 and 50,000 or higher, depending on the professional experience level. Salaries of senior executives and specialists may exceed AED 60,000 per month.
A step toward broader reform?
According to labour experts, the new minimum wage to be paid to the Emiratis is a process and not an overnight change. Even though there is currently no single universal minimum wage law in the UAE, MoHRE still reserves the right to introduce more extensive wage floors in the future should economic conditions justify the move.
In the meantime, the policy highlights a direct message, that is, Emiratis in the private-sector employment should be competitive, fair, and sustainable. Dubai and the UAE are still in the process of modernising labour laws, and this means that more reforms will still be a subject of debate amongst policymakers, businesses, and workers.