New Delhi: India’s real GDP growth is projected at 7.4 per cent for FY26, up from 6.5 per cent in FY25, a report has said, highlighting seasonal pick up in electricity, mining and construction sectors. The report from ICRA said that growth is expected to ease below 7 per cent in H2 FY26 from 8 per cent in H1 because of an unfavourable base effect and moderation in exports.

The report expects a pause in the February 2026 policy review by the RBI, with future decisions to be guided by the FY27 Union Budget and evolving inflation-growth dynamics. Meanwhile, economic activity remained healthy in Q3 FY26, aided by GST rate‑cut led festive demand and seasonal upticks in some sectors.

ICRA expects consumption volumes of goods and services as well as manufacturing volumes to have benefited from GST cuts and festival demand in Q3, though the export drag may intensify in H2 unless a US trade deal materialises.

The firm forecasts CPI inflation to plunge to 2 per cent in FY26 from 4.6 per cent in FY25, with WPI at 0.4 per cent. CPI rose to 0.7 per cent in November 2025 from 0.3 per cent in October, due to a narrower deflation in food and beverages.

Additionally, mining and construction activity as well as electricity demand are set to witness a seasonal pick up in the coming months, after the easing owing to rainfall-related disruptions, it said. “Cement production is expected to grow 6.5–7.5 per cent in FY26. Steel demand growth may moderate to 7–8 per cent after strong previous years. Electricity demand growth is muted at 1.5–2 per cent for FY26,” the report noted.

It also flagged external risks including delay in the US-India trade deal, and global policy changes affecting service exports. Domestic risks encompass subdued export growth, monsoon variability, fiscal constraints, and inflationary pressures from commodity prices.

As of 2025, the UAE has not enacted a formal nationwide minimum wage for all private-sector workers. The current labor framework, outlined in Federal Decree-Law No. 33 of 2021, provides the Ministry of Human Resources and Emiratisation (MoHRE) with the legal authority to establish a national wage floor but no binding law has yet been implemented.Instead, salaries are regulated through employment contracts and visa-related requirements. Employers must pay wages via the Wage Protection System (WPS); a government-monitored payroll platform. Failure to comply can result in suspension of new work permits, fines, and company blacklisting.Recent reforms have expanded WPS coverage to include domestic and semi-professional workers like private teachers, caregivers, nannies, and farm technicians. This shift reflects a broader move toward labor standardization and income protection across job categories.

What workers typically earn: A benchmark view

Although no legally enforced floor exists, salary benchmarks function as de facto minimums in many professions. These reflect industry standards, cost of living, and immigration thresholds.

Domestic workers:

Housemaids, nannies, and drivers employed in homes now fall under stricter payment rules, with most salaries ranging from AED 1,200 to AED 1,800/month (₹28,044–₹42,066), depending on experience and nationality. WPS compliance is mandatory for these roles, ensuring regular wage transfers and legal accountability for employers.

Construction and skilled trades:

Labourers and tradesmen form the backbone of the UAE’s infrastructure sector. While base pay for unskilled labourers often starts at AED 1,200–1,500/month (₹28,044–₹35,055), skilled tradespeople such as electricians, plumbers, and masons can earn between AED 2,000 and AED 4,500/month(₹46,740–₹105,165). Many of these roles are protected under labour laws that mandate written contracts, paid leave, and access to dispute resolution.

Retail and service staff:

Workers in retail outlets, supermarkets, cafes, and delivery platforms typically earn AED 2,500 to AED 4,000/month (₹58,425–₹93,480). In these sectors, wage variability is influenced by location (Dubai salaries often exceed those in Sharjah or Ajman), nationality, and employer size.

Office and administrative roles:

Clerical staff, receptionists, and data entry assistants generally receive AED 3,000 to AED 5,000/month (₹70,110–₹116,850), with larger companies or public sector institutions offering higher packages. For visa eligibility especially family sponsorship—employees must earn a minimum of AED 4,000/month (₹93,480), or AED 3,000 (₹70,110) plus housing.

University graduates and skilled technicians:

For professionals with technical or university qualifications, MoHRE guidelines recommend salaries of at least AED 5,000 to AED 12,000/month (₹116,850–₹280,440), depending on the nature of the role. Engineers, IT professionals, and finance specialists typically command salaries within or well above this range.

Visa rules and wage enforcement

Though no national wage law exists, immigration requirements act as an indirect filter. For example:

The Wage Protection System ensures salaries are paid into local bank accounts within 10 days of the due date. Any delay beyond 15 days triggers automatic alerts, and repeated violations can lead to bans on new hiring.

Rising costs and reform pressures

Over the past few years, Dubai and Abu Dhabi have seen substantial increases in rent, school fees, and healthcare costs. As a result, there is growing pressure on authorities to formalise wage protections and align pay standards with inflation.While some companies voluntarily adjust salaries to retain talent, many low-income workers remain vulnerable to economic shocks. Calls for an indexed minimum wage system adjusted annually to match living costs, growing louder, particularly from labour advocates, unions in labour-sending countries, and international observers.

The road ahead: Formal minimum wage in sight?

Although the UAE has avoided a one-size-fits-all national wage model, change is on the horizon:

MoHRE has already hinted at “exploring mechanisms” to address income disparities. If implemented, a flexible minimum wage varying by sector or emirate which could strike a balance between labour protection and economic competitiveness.

Verdict

While there is no official minimum wage in the UAE today, the country is moving toward greater wage transparency, stronger payment enforcement, and benchmark-based income protection. Domestic workers, skilled labourers, and administrative staff now operate under more structured payment conditions—backed by technology and labour law.As the UAE positions itself as a global employment hub, expectations for formal wage regulation will continue to rise. A future where salaries are legally anchored to fair benchmarks seems not only possible but likely.

Last Updated:December 27, 2025, 10:36 IST

Taxpayers facing refund holds due to mismatches must act before December 31.

Knowing revised and belated ITRs can help avoid penalties. (representative image)

The Income Tax Department has recently sent messages and emails to many taxpayers saying their refunds are on hold. The reason given is a mismatch in the income tax return (ITR) details. In these alerts, taxpayers have been asked to take action before December 31, this year, to fix the issue.

This has caused confusion, especially among those who believed they had filed their returns correctly. The department has also stepped up checks on cases where it feels excess refunds may have been claimed. As a result, many taxpayers are now unsure about the right way to respond.

In its email, the department reportedly stated, “As the time limit for filing of revised ITR for A.Y. 2025-26 will expire on 31 December 2025, you are requested to avail this opportunity to file Revised Return within the due date if so required. Alternatively, you may file an updated return w.e.f. 1 January 2026, however, subject to an additional tax liability.”

With the deadline nearing, it is important to understand the options available after the original ITR due date has passed.

What Is A Revised ITR?

A revised ITR allows taxpayers to fix mistakes made in the original return. These errors could include missing income details, wrong deductions, calculation errors, or choosing the wrong ITR form. Under Section 139(5) of the Income Tax Act, 1961, taxpayers can submit a revised return to correct such issues.

A revised ITR can also be filed if the refund amount needs to be increased or reduced based on corrected information.

What Is A Belated ITR?

A belated ITR is filed when a taxpayer misses the original filing deadline. As per Section 139(1) of the Income Tax Act, this return can be submitted until December 31 of the assessment year. However, filing late usually means paying a penalty.

Taxpayers who miss the deadline are advised to file a belated return instead of not filing at all, as non-filing can lead to further trouble.

Why File A Revised ITR?

A revised return is useful when the original ITR has errors. These may include underreported or overstated income, wrong deductions, incorrect refund claims, or other filing mistakes.

As quoted by Livemint, CA, Shefali Mundra, tax expert at ClearTax, says, “There is no penalty for filing a revised return within the prescribed timeframe.”

Revised ITR vs Belated ITR Explained

“A revised return is filed to correct errors or omissions in a previously filed return (either original or belated). It can be filed before 31 December of the relevant assessment year or before the department completes the assessment. The revised return is linked to the original filing, and the taxpayer can make corrections without any penalties, apart from paying any additional taxes and interest,” CA Mundra told Livemint.

She added that a belated ITR is treated differently.

“A belated return is filed after the original due date for submitting the return, which is typically 31 July for individual taxpayers. A belated return is still considered an original return, and it is subject to a late filing fee under Section 234F (up to Rs 5,000, depending on the income) and interest on unpaid tax. Additionally, certain benefits, such as carrying forward losses, may not be available when filing a belated return,” CA Mundra also stated.

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