Dubai and the wider UAE are set to introduce major regulatory changes from June 2026, affecting motorists, employees, employers, and young adults across the country.
Dubai Parking Fees to Rise
Starting June 1, 2026, Dubai’s parking operator Parkin will apply a five per cent Value Added Tax (VAT) on all parking-related services in line with UAE tax regulations.
The VAT increase will apply to:
- Public on-street parking
- Off-street parking facilities
- Seasonal parking subscriptions
- Parking permits and reservations
However, overnight parking between 1am and 6am will remain free.
Salik Toll Charges to Increase
Dubai motorists will also pay more at Salik toll gates as VAT will now be added to toll fees and Salik tag activation charges.
The updated fees will automatically be deducted from prepaid Salik accounts.
For regular commuters, the increase could add up monthly:
- Drivers crossing four Salik gates daily will see costs rise from Dh24 to Dh25.20 per day
- Over a 22-working-day month, this translates to approximately Dh26.40 in extra expenses
Premium parking users will also pay more, with two hours of daily parking increasing from Dh12 to Dh12.60.
Dubai Moves to Fully Cashless Parking
Dubai will officially phase out cash payments at parking meters from June 1, 2026, as part of its digital transformation strategy.
Motorists will no longer be able to use coins or paper money at parking machines.
Parking payments can instead be made through:
- nol cards
- Parkin mobile app
- SMS parking services
- Dubai Now app
- RTA app
UAE Lowers Legal Age of Adulthood to 18
Under Federal Decree-Law No. 25 of 2025, the UAE will reduce the legal age of majority from 21 to 18 beginning June 1.
The change grants 18-year-olds full legal authority to:
- Sign contracts independently
- Manage bank accounts
- Handle financial matters without guardianship
- Exercise broader legal rights and responsibilities
Authorities say safeguards remain in place to protect young adults from financial exploitation.
Tougher Salary Payment Rules for Employers
The Ministry of Human Resources and Emiratisation (MOHRE) is tightening Wage Protection System (WPS) enforcement rules for private sector employers.
From June 1, 2026:
- Salaries for the previous month must be paid on the first day of the following month
- Any payment after that date will officially be classified as delayed
For example, May salaries must be paid by June 1.
Key WPS requirements include:
- Salaries must be transferred through WPS or other approved channels
- MOHRE will apply penalties gradually through a phased enforcement system
- Companies are considered compliant if at least 85 per cent of employee salaries are paid on time
- Employees are legally regarded as paid if they receive at least 85 per cent of their salary and any deductions are properly documented
