Private sector employers in the UAE have until 30th June 2026 to raise Emirati staff salaries to a minimum of AED 6,000 per month or face penalties that affect the entire business, not just their Emirati headcount.
What the rule requires
MOHRE raised the minimum wage for Emirati private sector employees from AED 5,000 to AED 6,000, effective 1st January 2026. It is the latest step in a phased strategy that started at AED 4,000. From 1st January, any new, renewed, or amended Emirati work permit listing a salary below AED 6,000 is rejected outright. For employees already on payroll before that date, the deadline to update salaries is 30th June 2026. The rule applies to mainland companies registered with MOHRE. Free zone entities are currently exempt. Expatriate staff are unaffected.
What happens if you miss the deadline
From 1st July 2026, two penalties kick in simultaneously:
- Work permits frozen. Companies with underpaid Emirati staff cannot issue new work permits – for anyone, not just Emiratis.
- Quota credit lost. Underpaid Emiratis are removed from Emiratisation headcount calculations, potentially pushing the company into non-compliance with annual targets.
The two consequences stack. A company can be meeting its quota numbers and still lose credit for every Emirati earning below the threshold.
For context, missing Emiratisation quota targets costs AED 9,000 per unfilled position per month (AED 108,000 per year, per role). Fictitious hires carry a separate fine of up to AED 100,000 per employee.
How Nafis can offset the cost
The government’s Nafis programme is designed to make compliance affordable. Benefits include:
- Monthly salary support of up to AED 8,000 for bachelor’s degree holders (AED 7,000 for diploma/high school), for up to five years
- Pension contribution top-ups and child allowances
- Free candidate matching via nafis.gov.ae
After subsidies, hiring a qualifying Emirati graduate can cost a similar amount to an equivalent expatriate hire — and well below the AED 108,000 annual penalty for an unfilled quota position.
What to do now
- Identify every Emirati employee earning below AED 6,000
- Formally amend their employment contracts (a payroll change alone is not sufficient)
- Update salary records in the Wage Protection System
- Register on nafis.gov.ae to access available subsidies
- Recheck your Emiratisation quota position once updates are made
For informational purposes only. Consult a UAE labour law professional for advice specific to your organisation, or visit mohre.gov.ae and nafis.gov.ae for official guidance.