The Ministry of Human Resources and Emiratisation (MoHRE) has raised the minimum monthly wage for Emirati citizens in the private sector from AED 5,000 to AED 6,000, effective 1 January 2026. Crucially, the ministry has tied compliance to the work-permit system: any application to issue, renew or amend an Emirati work permit showing a salary below the new threshold will be blocked automatically.
Employers have until 30 June 2026 to adjust existing payroll records. After that, establishments risk losing access to new work permits and having non-compliant employees excluded from Emiratisation-quota calculations. Penalties could disrupt project staffing and delay visa processing for expatriate hires if a company is deemed non-compliant.
![Minimum Wage for Emiratis Raised to AED 6,000; Non-Compliance Blocks Work-Permits]()
While the rule does not apply directly to foreign staff, it will ripple through multinational compensation structures, especially where locals and expatriates hold comparable roles. Global mobility leaders should collaborate with compensation and payroll teams to update salary bands, revise assignment-cost projections and ensure HRIS systems flag any Emirati whose pay falls below the threshold.
Projects that rely on government contracts may face tightened localisation scorecards, making full compliance essential for bid eligibility. Companies should also audit vendor contracts to ensure subcontractors meet the wage floor, as non-compliance anywhere in the supply chain can trigger work-permit freezes.
In practical terms, mobility teams must be ready to explain potential permit delays to incoming expatriates if a freeze occurs, and should build additional lead time into assignment planning during the transition period.
Employers have until 30 June 2026 to adjust existing payroll records. After that, establishments risk losing access to new work permits and having non-compliant employees excluded from Emiratisation-quota calculations. Penalties could disrupt project staffing and delay visa processing for expatriate hires if a company is deemed non-compliant.
While the rule does not apply directly to foreign staff, it will ripple through multinational compensation structures, especially where locals and expatriates hold comparable roles. Global mobility leaders should collaborate with compensation and payroll teams to update salary bands, revise assignment-cost projections and ensure HRIS systems flag any Emirati whose pay falls below the threshold.
Projects that rely on government contracts may face tightened localisation scorecards, making full compliance essential for bid eligibility. Companies should also audit vendor contracts to ensure subcontractors meet the wage floor, as non-compliance anywhere in the supply chain can trigger work-permit freezes.
In practical terms, mobility teams must be ready to explain potential permit delays to incoming expatriates if a freeze occurs, and should build additional lead time into assignment planning during the transition period.
Source: VisaHQ Global Mobility News
