The Big Debate: Should the UAE set a minimum wage?

Ever since the idea was first mooted, the issue of a minimum wage has proved a difficult dilemma for the UAE Ministry of Labour.

Some say that the legislation could serve to appease certain human rights groups that have been critical of labour laws in the UAE and other Gulf countries.  Thousands of migrant workers – many paid as little as Dh25 a day – could benefit from such a scheme, which could also be used to standardise and enforce certain other rights such as living conditions and timely pay.

The other side of the argument - voiced by many in the construction industry - is that the market should be allowed to decide rates of pay.

In either case, the Ministry of Labour seems to have abandoned the plans for this legislation. "There will not be a minimum wage in the larger sense," said the ministry’s International Affairs advisor Alex Zalami at a recent conference.

"It's a matter of creating an environment that is conducive to higher wages. Let's look at the situation we have today and see if there is something that can be done by the ministry."

What do you think? Would a minimum wage benefit UAE workers but damage the economy?  At would level should basic pay be set, and should it apply to all sectors or just specific areas such as construction? Or should such things be left to market forces?

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