No plan to implement ‘minimum wage’ in UAE

By Eudore R. Chand

Pay fixed by mutual consent of both parties

ABU DHABI 4 April 2018: The Ministry of Human Resources and Emiratisation (MoHRE), has said that the Government has no plans to implement a minimum wage policy in the UAE.

The ministry said that wages – including for domestic workers – will continue to be fixed through negotiation between employer and employee.

“The UAE’s wage policies enable a flexible labour market that creates thousands of new jobs annually,” the ministry added in a statement to Wam.

“The government remains of the view that a free labour market, based on supply and demand, creates the optimal conditions under which we are able to continue to welcome thousands of guest workers to the UAE every year, while simultaneously fostering sustainable economic growth.”

The ministry has nothing to do with any released statements about fixing minimum wages for domestic workers, the MoHRE added.

The UAE has recently taken steps to increase protections for domestic workers. On 26th September, 2017, the President His Highness Sheikh Khalifa bin Zayed Al Nahyan issued Federal Law No. 10 of 2017. The law regulates the contractual relationship between employers and domestic workers and provides legal protections to safeguard the rights of all parties involved.