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Shifting Sands of Labor Law

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UAE Nafis Update – What’s Changing?

The United Arab Emirates has announced that the Nafis (i.e., “compete” in Arabic) program will be extended until 2040. Initially implemented in September 2021 for a period of five years, Nafis is a UAE government program that aims to boost Emirati employment in the private sector. To benefit from Nafis, an employee must be a UAE national and employed by a private sector entity regulated by the Ministry of Human Resources and Emiratization or the UAE Central Bank. The individual must also be registered with the UAE pension fund.

The key updates are as follows:

  • Child Allowance: Emiratis are now entitled to AED 600 per month per child as a child allowance, provided an employee’s salary is at least AED 6,000 and does not exceed AED 50,000. Previously, the child allowance was limited to a maximum of four children. This cap will now be removed.
  • Minimum Salary Threshold: The minimum salary to benefit from Nafis support schemes has been set at AED 6,000 per month. This aligns with the minimum wage requirements for UAE nationals introduced on January 1, 2026. From January 1, 2026, the minimum wage for Emiratis for new or renewed work permits is AED 6,000. The salaries of existing Emirati staff without an upcoming work permit renewal must be increased to AED 6,000 per month by June 30, 2026.
  • Maximum Salary Threshold: The maximum salary threshold to benefit from the Salary Support Scheme has been changed to AED 20,000 per month. Employees receiving a salary of AED 20,000 or less will remain eligible to participate in the salary support scheme. Support for employees earning above AED 20,000 per month will be gradually reduced by AED 500 every six months until the support is at 0. For employees earning AED 20,000, the current level of support will be amended gradually until it aligns with the newly approved support levels.
  • New Programs: Nafis announced two new support schemes titled Salary Scheme for Children of Emirati Mothers Working in the Private Sector and Salary Support Scheme for Wives of Emirati Citizens Working in the Private Sector. Further details regarding those schemes will be announced at a later date. The monthly support under these schemes will be up to AED 3,000.
  • Free Zones: Support will also be extended to employees working for free zone employers. UAE national employees working for free zone companies and earning below AED 6,000 will receive salary support for a maximum period of 15 months.

The amendments will take effect in September 2026. The recent adjustments to the Nafis scheme highlight a continued focus on improving access to opportunities and supporting career growth within the private sector for UAE nationals.