The UAE confirmed officially that the 1st of January 2026, will be a public holiday paid for by all employees in the private sector. This was announced by the Ministry of Human Resources and Emiratisation as part of a unified national holiday schedule, to ensure that both private and public sector employees can enjoy the New Year’s break together.
This announcement shows the UAE’s commitment towards employee welfare, work-life integration, and consistent holidays. The announcement allows millions of employees in the private sector to celebrate New Year’s with their families and friends while businesses have ample time to plan. This decision benefits many sectors, including tourism, retail and hospitality.
The Paid Holiday Program
All employees in the private sector covered by UAE Labour Law are entitled to this holiday. Employees in the private sector are eligible, including full-time employees, part-time employees, temporary or contractual employees, flexible and remote workers, as well as staff working in free zones.
Each employee who is eligible will receive full pay during the holiday. This ensures fairness and aligns with public sector schedules. To avoid operational confusion, companies are encouraged to update their internal calendars.
Work on Holiday
Some sectors such as healthcare, logistics and aviation, hospitality, emergency response and delivery services may require their employees to work 1 January 2026. UAE Labour Law stipulates that employees working on the holiday are entitled to either an alternative day off, or extra compensation. This includes at least 50% of their full-day’s salary plus a day’s pay.
It ensures that employees are treated fairly while essential services continue to operate during the holiday. Employers are required to clearly communicate the work requirements, and must adhere to MOHRE rules.
Why this Holiday is Important
It is important for social, economic and operational reasons. Employees are guaranteed a day off, which allows them to spend time with their family and friends. Early notice allows businesses to plan their staffing, payroll and operations. This holiday is on a Thursday. It offers a longer weekend, when combined with Friday and Saturday. This encourages travel, leisure, and local tourism.
The following are some of the benefits you can expect from your holiday:
- Make sure employees have a day off to celebrate and rest
- It allows businesses to plan their staffing, shifts and payroll efficiently
- The support for domestic travel and tourism boosts the economy
- Consistency in aligning holidays between the private and public sectors
Impact on Businesses
Different industries are affected by the paid holiday. Shopping malls and retail stores may experience increased traffic and sales. Bookings for hotels, restaurants, and entertainment venues are usually higher, while the travel sector is benefited by families who plan short stays and trips.
To ensure smooth operation, essential services such as logistics, airlines and emergency services will need to prepare duty schedules. The UAE Labour Law requires that companies compensate employees who work on holidays.
Employee Rights
All employees in the private sector are entitled to a holiday. All employees must be compensated for their work or receive an alternative day of leave. If their holiday rights aren’t respected, employees can lodge complaints with MOHRE. To maintain transparency and compliance, employers must communicate clearly about holiday policies and work schedules.
Conclusion:
UAE Announces New Year Paid Holiday 2026 for Private Sector Staff reaffirms UAE’s commitment to employee welfare, fair work practices and national unity. Workers can begin the new year with family time, celebrations, and rest by granting them a paid holiday for 1 January 2026. Businesses will have clearer guidance in terms of staffing and operation, while retail, tourism, and hospitality are expected to experience increased activity. This approach creates a productive and balanced work environment that is employee-friendly for all staff in the private sector.