As of January 2026, several
significant updates to the UAE Labor Law and Emiratization policies have come
into effect. The most notable changes focus on increasing the minimum wage for
UAE nationals in the private sector and escalating hiring targets for
companies.
𝟏. 𝐄𝐦𝐢𝐫𝐚𝐭𝐢 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐖𝐚𝐠𝐞 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞
Effective 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟏, 𝟐𝟎𝟐𝟔, the
Ministry of Human Resources and Emiratisation (MoHRE) has implemented a new
minimum wage for Emirati talent in the private sector.
- 𝐍𝐞𝐰 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐖𝐚𝐠𝐞:
𝐀𝐄𝐃 𝟔,𝟎𝟎𝟎 𝐩𝐞𝐫 𝐦𝐨𝐧𝐭𝐡.
- 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐢𝐥𝐢𝐭𝐲:
This applies to all 𝐧𝐞𝐰,
𝐫𝐞𝐧𝐞𝐰𝐞𝐝,
𝐨𝐫 𝐚𝐦𝐞𝐧𝐝𝐞𝐝 work
permits for Emiratis.
- 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞 𝐟𝐨𝐫 𝐄𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐟𝐟:
Employers with Emirati staff hired before 2026 must
adjust their salaries to meet this new minimum by 𝐉𝐮𝐧𝐞 𝟑𝟎,
𝟐𝟎𝟐𝟔.
- 𝐏𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬:
Starting July 1, 2026, companies that fail to meet
this wage floor will find those employees excluded from their
Emiratization quota calculations, and the issuance of new work permits for
the company may be suspended.
𝐑𝐞𝐚𝐝 𝐌𝐨𝐫𝐞:
2. 𝟐𝟎𝟐𝟔 𝐄𝐦𝐢𝐫𝐚𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐓𝐚𝐫𝐠𝐞𝐭𝐬
The UAE's phased Emiratization
strategy has reached its final year of the current "2% annual growth"
cycle.
- 𝟏𝟎%
𝐂𝐮𝐦𝐮𝐥𝐚𝐭𝐢𝐯𝐞 𝐓𝐚𝐫𝐠𝐞𝐭:
𝐁𝐲 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟑𝟏,
𝟐𝟎𝟐𝟔,
companies with 50 or more employees must achieve a total Emiratization
rate of 10% in skilled roles.
- 𝐒𝐦𝐚𝐥𝐥 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬
(𝟐𝟎–𝟒𝟗 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬):
Establishments in 14 specific economic sectors
(including real estate, education, and healthcare) must have at least 𝐭𝐰𝐨 𝐄𝐦𝐢𝐫𝐚𝐭𝐢𝐬
on staff by the end of 2025/early 2026.
- 𝐅𝐢𝐧𝐞𝐬 𝐟𝐨𝐫 𝐍𝐨𝐧-𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞:
Companies that failed to meet their 2025 targets are
now facing monthly fines of 𝐀𝐄𝐃 𝟗,𝟎𝟎𝟎 per
unfilled position (totaling AED 108,000 for the year) as of January 2026.
𝟑. 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐝 𝐏𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬 &
𝐄𝐧𝐟𝐨𝐫𝐜𝐞𝐦𝐞𝐧𝐭Following
amendments to 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐃𝐞𝐜𝐫𝐞𝐞-𝐋𝐚𝐰 𝐍𝐨. 𝟑𝟑 𝐨𝐟 𝟐𝟎𝟐𝟏, MoHRE
has intensified enforcement against "Fake Emiratization" and labor
violations.
- 𝐅𝐚𝐤𝐞 𝐄𝐦𝐢𝐫𝐚𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐅𝐢𝐧𝐞𝐬:
Fines can range from 𝐀𝐄𝐃 𝟏𝟎𝟎,𝟎𝟎𝟎 𝐭𝐨 𝐀𝐄𝐃 𝟏,𝟎𝟎𝟎,𝟎𝟎𝟎 for
companies found to be circumventing targets through sham contracts.
- 𝐔𝐧𝐚𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐞𝐝 𝐄𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭:
Severe penalties apply to employers who hire workers without valid permits
or fail to settle employee entitlements (gratuity, final pay) upon
business closure.
4. 𝐖𝐨𝐫𝐤 𝐌𝐨𝐝𝐞𝐥𝐬 &
𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐑𝐞𝐦𝐢𝐧𝐝𝐞𝐫𝐬
While not "new" for
2026, the enforcement of flexible work models is a primary focus for the
ministry this year.
- Fixed-Term Contracts:
All employees must be on fixed-term contracts (typically capped at 3 years
but renewable).
- Flexible Work Models:
The law recognizes six models: Full-time, Part-time, Temporary, Flexible,
Remote work, and Job-sharing.
- Unemployment Insurance (ILOE):
Subscription remains mandatory for all employees (except certain
exempt categories like investors or domestic workers). Failing to
subscribe results in a AED 400 fine, which can block work permit
renewals.
#UAELabourLaw#UAECompliance#uaelabourlaw#MiddleEastBusiness
#UAEEmployers#GCCWorkplace #UAEWorkforce #GulfLegalUpdates #DubaiLaw
#LostAndFound#UAEGovernment#LegalUpdate
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