UAE Private Sector Equal Pay

Overview

The United Arab Emirates (UAE) has taken a significant step towards enhancing gender equality in the workplace with the enactment of Federal Decree-Law No. 6 of 2020, specifically addressing equal pay in the private sector. This landmark legislation, which officially came into effect on September 25, 2020, amends Article 32 of Federal Law No. 8 of 1980, commonly known as the UAE Labour Law. The primary objective of this decree is to ensure that female employees receive wages equal to those of their male counterparts when performing the same work or work of equal value. This amendment represents a crucial advancement in the UAE's ongoing efforts to foster a more inclusive and equitable labor market, aligning its national laws with international best practices and commitments to gender balance. The law underscores the UAE's strategic vision to empower women as integral contributors to national development and economic diversification.

The journey towards this decree began earlier, with the UAE Cabinet approving the law on equal wages and salaries for women and men in 2018. This initial approval underscored the government's proactive stance in addressing the gender pay gap and supporting women's integral role in national development. The formal issuance of Federal Decree-Law No. 6 of 2020 by President His Highness Sheikh Khalifa bin Zayed Al Nahyan on August 25, 2020, solidified this commitment, paving the way for its implementation a month later. The law is a testament to the UAE's dedication to strengthening its regional and international standing in upholding gender equality, as highlighted by the Ministry of Human Resources and Emiratisation (MoHRE). This legislative initiative is part of a broader national agenda to enhance the UAE's competitiveness and attractiveness as a global talent hub, ensuring fair and equitable treatment for all workers.

The introduction of this equal pay decree is not an isolated measure but rather a key component of a broader national strategy aimed at empowering women and promoting their social inclusion. It complements other progressive legislative changes, such as the introduction of paternity leave and the removal of previous restrictions on women working in certain sectors or during night hours. By mandating equal remuneration for work of equal value, the UAE seeks to eliminate discriminatory wage practices and encourage greater participation of women in the private sector workforce. This legislative update is expected to significantly boost the social inclusivity of women, support their contributions to national development, and further advance the UAE's position on global gender equality indices, reflecting a deep commitment to fostering a truly equitable society.

Definitions

Federal Decree-Law No. 6 of 2020, by amending Article 32 of Federal Law No. 8 of 1980, establishes a clear principle regarding remuneration. The core definition articulated in the decree states: “Female employees shall receive wages equal to that of males if they perform the same work, or another of equal value.” This definition introduces two critical concepts: