UAE jobs: Minimum wage introduced in new labour law

In a first-of-its-kind move, the new UAE labour law introduces a minimum wage for private-sector employees to be applicable from February 2, 2022.

Article 27 of the Federal Decree Law No. 33 of 2021 regulating labour relations will set a minimum wage to be determined and announced by the cabinet following a proposal by the Minister of Human Resources and Emiratisation in collaboration with the relevant authorities.

Previously, the UAE labour law had no minimum wage set beyond broadly mentioning that salaries must cover the basic needs of employees.

The new decree law, announced on Monday as the most significant amendment of the Labour Law no. 8 of 1980, was drafted in consultation with all the relevant parties in the federal and local government and the private-sector.

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Dr Abdul Rahman Al Awar, Minister of Human Resources and Emiratisation, said the new law aims to support the UAE’s efforts to create a labour market that copes with the ever-changing modern world. It works to fulfill the aspirations of both employees and employers, reserve employee rights, and attract talents and competencies from across the globe.

sherouk@khaleejtimes.com