The UAE is one of the fastest-growing economies in the world, attracting people from all over the globe for work, business, and investment. With strong growth across various industries like technology, finance, tourism, and real estate, the job market in the UAE continues to expand in 2025.
But one important question that comes up for many – what is the minimum wage in the UAE? Unlike some other countries, the UAE does not have a standard, across-the-board minimum wage for all workers. Instead, salaries can vary widely depending on your job role, experience, skills, and the emirate you work in.
That’s why understanding how wages work in the UAE is so important, whether you’re an employee, an employer, an expat planning to move here from UK or anywhere else, a business owner hiring staff, or a job seeker looking for new opportunities.
Is There a Minimum Wage in the UAE?
As of 2025, the United Arab Emirates (UAE) does not have a universal minimum wage applicable to all workers across the country. Instead, wages are primarily determined through agreements between employers and employees, influenced by factors such as job role, industry, experience, and location.
Historically, the UAE has not implemented a nationwide minimum wage. The labour market has operated on a free-market basis, where salaries are negotiated based on market demand, qualifications, and other relevant factors. This approach has allowed flexibility but has also led to significant variations in pay across different sectors and job categories.
Federal Decree-Law No. 33 of 2021 and Its Impact
In an effort to modernize labour relations, the UAE introduced Federal Decree-Law No. 33 of 2021, which came into effect on February 2, 2022. This law replaced the previous labour law and brought several reforms to the employment landscape.
Notably, Article 27 of this decree-law provides the legal framework for establishing a minimum wage. It states that the UAE Cabinet may, upon the proposal of the Minister of Human Resources and Emiratisation and in coordination with relevant authorities, issue a resolution to determine the minimum wage for workers or specific categories of workers. However, as of now, no such resolution has been enacted, and therefore, no official minimum wage has been set under this provision.
UAE Sector-Specific Wage Guidelines
While there is no universal minimum wage, certain sectors have established wage guidelines to ensure fair compensation:
Domestic Workers:
The UAE has implemented specific regulations for domestic workers, including stipulations on wages, working hours, and other employment conditions.
Skilled vs. Unskilled Workers:
Wage expectations often vary between skilled and unskilled workers. Skilled workers, such as professionals in healthcare, engineering, and finance, typically command higher salaries due to their qualifications and experience. Unskilled workers, including those in construction or manual labour, may have lower wage expectations, influenced by market demand and other factors.
It’s essential to note that while these guidelines exist, they are not legally binding minimum wages. Employers and employees are encouraged to negotiate fair compensation, keeping in mind the cost of living, job responsibilities, and prevailing market rates.
Key Changes or Updates in UAE Wage Policies in 2025
The UAE has implemented significant reforms to enhance wage fairness, strengthen employee protections, and modernise labour regulations. Here’s an overview of the most notable developments:
1. Introduction of Minimum Wage for Skilled Workers
For the first time, the UAE has established a formal minimum wage for specific skilled worker categories:
- Skilled Category 1 & 2 Employees: A minimum monthly salary of AED 5,000 has been mandated for new labour contracts issued in 2025. This applies to roles requiring higher education or technical expertise.
While this minimum wage is not universal across all sectors, it sets a precedent for wage standards in the private sector.
2. Enhancements to the Wage Protection System (WPS)
The UAE has intensified efforts to ensure timely and transparent salary payments through the Wage Protection System:
- Mandatory WPS Compliance in Free Zones: Free zones like the Dubai Multi Commodities Centre (DMCC) now require all registered companies to utilize the WPS platform for salary disbursements. Non-compliance can lead to penalties and suspension of new work permits.
- Stricter Penalties for Delayed Payments: Companies must pay salaries within 7 days of the due date. Delays beyond this period can result in automatic penalties and restrictions on issuing new work permits.
3. Sector-Specific Salary Guidelines
Although a universal minimum wage is not in place, the Ministry of Human Resources and Emiratisation (MOHRE) has provided salary benchmarks for various professional categories:
- University Graduates: Recommended minimum monthly salary of AED 12,000
- Skilled Technicians: Recommended minimum monthly salary of AED 7,000
- Skilled Labourers with Secondary Education: Recommended minimum monthly salary of AED 5,000
These guidelines serve as reference points to ensure fair compensation, though they are not legally binding.
What is the Average Wage in the UAE in 2025?
The average monthly salary in the UAE in 2025 varies depending on the source and methodology of the data. According to a report by Business Insider, international human resources organisations estimate that the average/minimum salary in Dubai in 2025 is about AED 16,500 per month, which corresponds to $4,490. This figure reflects a general average across various sectors and experience levels.
Regional Salary Variations
Salaries in the UAE can also differ based on the emirate:
- Dubai: Approximately AED 15,800 – AED 25,000
- Abu Dhabi: Around AED 20,000
- Sharjah: Approximately AED 15,000
- Ajman: Around AED 14,100
- Ras Al Khaimah: Approximately AED 13,200
Factors That Influence Salary Levels in the UAE
Salary levels in the UAE are influenced by a combination of personal qualifications, industry dynamics, and broader economic factors.
1. Industry and Sector Demand
Salaries vary significantly across different industries. High-demand sectors like technology (especially AI and cybersecurity), finance, healthcare, and renewable energy often offer higher compensation due to the specialised skills required.
2. Experience and Seniority
Experience plays a crucial role in determining salary. Entry-level professionals typically earn less than those with mid-level or senior experience. For instance, individuals with over ten years of experience may see their salaries double compared to their starting pay.
3. Educational Qualifications and Certifications
Holding advanced degrees or professional certifications can lead to higher salaries. For example, certifications like CFA for finance professionals or AWS for IT specialists are highly valued and can enhance earning potential.
4. Nationality and Visa Status
While the UAE promotes equal opportunities, some variations in salary packages can occur based on nationality or visa status, influenced by company policies and market practices.
5. Geographic Location
Salaries can differ based on the emirate. For instance, positions in Dubai and Abu Dhabi typically offer higher pay compared to other regions, reflecting the cost of living and economic activity in these cities.
Wage Protection System in the UAE
Wage Protection System (WPS) in the UAE is designed to safeguard workers’ rights by ensuring that salaries are paid accurately and on time. It mandates that employers pay wages through banks, exchange houses, or financial institutions authorised by the Central Bank. This system enhances transparency and accountability in salary disbursements.
How to Pay Wages to Employees in the UAE via WPS
To comply with the WPS, employers should follow these steps:
1. Register with WPS
Ensure your company is registered with MoHRE and has an account with a WPS-authorised bank or financial institution.
2. Prepare the Salary Information File (SIF)
Create a SIF containing details such as employee names, labour card numbers, salary amounts, and bank account information.
3. Submit the SIF
Upload the SIF to your bank or financial institution for processing.
4. Salary Disbursement
Upon verification, salaries are transferred to employees’ accounts.
5. Maintain Records
Keep records of all transactions for auditing and compliance purposes.
Note: Salaries must be paid within 10 days of the due date. Delays can result in penalties, including fines and restrictions on obtaining new work permits.
How Shuraa UK Can Help
Knowing about the Minimum Wage in the UAE is really important if you’re living, working, or starting a business here, especially in 2025 when rules and wages are changing. Staying updated on wage policies can help you avoid issues and make the right decisions. If you’re a UK expat or entrepreneur, Shuraa UK is here to help.
We support both individuals and businesses with everything from drafting employment contracts and ensuring labour law compliance to handling PRO services. With Shuraa UK by your side, dealing with the UAE job market becomes a lot easier.
