Enhanced Rights for Emirati Workers in the Private Sector
The Ministry of Human Resources and Emiratisation (MoHRE) has increased the minimum monthly salary for Emirati nationals in the private sector from AED 5,000 to AED 6,000 under its phased Emiratisation strategy. This policy applies to all new, renewed, or amended work permits with two years validity starting January 1, 2026. Employers must adjust existing contracts by June 30, 2026, to avoid penalties, including restrictions on permit processing, automated notifications for non-compliance, and exclusion from Emiratisation targets.
Special Provisions and Confirmations:
- Its third phase of minimum wage increases which started from AED 4,000 to 5,000, now it is 6,000, aimed at boosting job stability and private sector attractiveness for Emiratis.
- Confirmed via official MoHRE press statements and notifications issued on December 31, 2025, with automated alerts to employers for salary adjustments.
- Applies exclusively to Emirati work permits with two years validity and salaries below AED 6,000 will not be processed from January 1, 2026.
Key Impacts:
- Enhances financial security and job attractiveness for Emiratis.
- Aligns with phased Emiratisation initiatives to boost private sector participation.
- Employers: Act promptly to review and update contracts for compliance.
Civil Transactions Law Reform: Age of Maturity Lowered to 18
The Federal Decree Law promulgating the Civil Transactions Law has reduced the age of legal majority from 21 lunar years to 18 Gregorian years. It has also lowered the age for minors to seek judicial approval for managing financial assets from 18 Hijri years to 15 Gregorian years. These reforms modernize the framework, align with international standards, and harmonize with juvenile, labor as well as criminal laws.
Special Provisions and Confirmations:
- Unifies the legislative time reference to the Gregorian calendar and eliminating practical challenges from lunar based calculations.
- Enhances judicial discretion in authorizing minors aged 15+ to manage his / her assets, promoting youth economic participation.
- Confirmed via official UAE Government announcements on January 1, 2026, as part of a broader modernization of the legal system.
- No impact on separate laws like the Personal Status Law e.g. marriage ages remain unchanged under religious authorities.
Key Implications and Answers to Common Questions:
- Youth Empowerment: Individuals aged 18+ now have full civil capacity for contracts, property ownership, and business activities, promoting entrepreneurship.
- Drinking and Bars: This civil law change does not affect alcohol regulations. The legal drinking age remains 21 in Dubai and most Northern Emirates (18 in Abu Dhabi; prohibited in Sharjah). Public consumption is illegal.
- Criminal Responsibility: Harmonizes standards: 18+ individuals are tried as adults, consistent with existing juvenile laws.
- Other Areas: Strengthens protections in financial transactions, compensation for harm, and overall legal clarity.
These developments focuses on the UAE’s modernization, youth empowerment, and workforce enhancement. For personalized guidance on impacts to your business or personal affairs, contact our legal experts. More updates are coming soon!
Contact Details: admin@bankslegal.com
