Minimum pension contribution salary for insured UAE nationals in the private sector raised to AED 6,000 as of 1 July 2026

Pursuant to this update, and in line with the Ministry of Human Resources and Emiratisation's (MOHRE) decision to increase the minimum salary for UAE nationals employed in the private sector to AED 6,000 per month, the following measures have been introduced:

Key Highlights of the Circular

• The minimum pension contribution salary has been increased to AED 6,000 per month for all insured UAE national employees whose current pension contribution salary is below this threshold.
• The amendment shall take effect from 1 July 2026.
• Employers are required to calculate and remit monthly pension contributions based on the revised contribution salary, commencing with the July 2026 pension contribution invoice issued by the Abu Dhabi Pension Fund.
• The Fund clarified that this measure is intended to align pension contribution records with the applicable regulatory framework, thereby safeguarding the insured employees' pension rights and ensuring that their future retirement benefits and related entitlements are not adversely affected.

Required Actions for Employers

We recommend that all private sector establishments employing UAE nationals who are registered with the Abu Dhabi Pension Fund take the following actions:

• Review the pension contribution salaries of all insured UAE national employees.
• Ensure that any pension contribution salary below AED 6,000 is updated before the issuance of the July 2026 pension contributions.
• Verify that payroll and human resources systems are fully aligned with the new regulatory requirements in order to avoid any compliance issues or regulatory liabilities.

The team at KMNA Lawyers & Legal Consultants remains available to provide legal advice and practical assistance regarding employers' obligations, pension regulations, and compliance with the applicable labour and regulatory framework in the United Arab Emirates.