As of March 2023
What is Emiratisation?
The UAE Government is pushing for Emiratisation, a program that requires the hiring of UAE citizens in both public and private sectors. The goal is to boost the local workforce's contribution to the national economy by increasing the number of UAE nationals employed. Although the public sector has made significant progress in implementing this initiative, the private sector has been slower to do so. To address this issue, the cabinet recently passed a decision that mandates the hiring of UAE citizens in the private sector.
The Cabinet approved a decision to raise Emiratisation rates to 2% annually for skilled jobs in private sector establishments with 50 or more employees and to achieve an overall rate of increase by 10% by 2026. This is accompanied by granting incentives to institutions that perform qualitatively in the training and employment of citizens. To support the commitment to achieve the above employment targets for nationals, non-compliant companies will have to pay an amount of AED 6,000 monthly, starting from January 2023, for every citizen who has not been employed. The amount will be paid through the digital systems of the Ministry of Human Resources and Emiratisation (MoHRE), provided that the value of the monthly contributions increases by AED 1,000 annually until 2026. (source)
2022 = 2% total of the workforce of a company.
2023= 4% total of the workforce of a company.
2024 = 6% total of the workforce of a company.
2025 = 8% total of the workforce of a company.
2026 = 10% total of the workforce of a company.
New Emiratisation Law: (as of March 2023)
Starting January 2023, companies in the private sector are required to adhere to the 2% Emiratisation law, which mandates all employers with over 50 employees to annually increase their Emiratisation rate by 2% of their overall skilled workforce. Under this scheme, specific targets must be met based on the number of skilled workers. Companies need to achieve 50% of their target before the end of June 2023.
Calculation:
For companies with 50 skilled workers, the minimum target is to hire 1 UAE national employee. For those with 51 to 100 skilled workers, the minimum target is to hire 2 UAE national employees. Companies with 101 to 150 skilled workers must recruit 3 UAE national employees. While those with more than 151 workers must hire 1 UAE national employee for every 50 workers.
Minimum of 1 UAE national for companies with 50 employees.
Minimum of 2 UAE nationals for companies between 51 to 100 employees.
Minimum of 3 UAE nationals for companies between 101 to 150 employees.
Minimum of 4 UAE nationals for companies between 151 to 200 employees.
Adding 1 UAE national for every 50 employees bracket is equivalent to 2% of the total workforce registered with MOHRE.
What are skilled workers that MOHRE defines, as and that fall under this law?
Legislators, business executives, and managers.
Professionals in technical, scientific, and humanitarian fields.
Technicians in technical, scientific, and humanitarian fields.
Service and sales occupations.
Writing professionals.
In addition:
Have a monthly salary of at least AED 4,000.
Hold a worker certificate that is attested by a competent authority.
Possess a certificate higher than secondary school or an equivalent qualification.
What are the penalties for not complying with the law?
AED 6,000/month for each unemployed UAE national as per the set deadlines. Equilivent to AED 72,000/year per unemployed UAE national. Source
A fine will be applicable in the following cases up to AED 100,000:
If the company declines to hire a UAE national after their training is completed without a legitimate reason.
If the company terminates the employee's benefits without a valid explanation and without informing Nafis.
If a company fails to hire a UAE national after obtaining a work permit but still receives support from Nafis.
If an employee receiving program benefits shows poor commitment to their job.
If the company does not inform Nafis of the employee's failure to show up for work.
A maximum fine of AED 100,000 may be levied for each false hiring and all the benefits given to the firm would be stopped and any benefits already distributed would have to be returned.
The consequences for not complying with the Emiratisation law:
If a company fails to pay the fines, it may result in the suspension of its ability to apply for new permit/s, or renew work permits. Also, you might be additional restrictions, blacklisting, additional financial fines, and legal complications.
Fine on Advertising Emiratisation jobs either by companies or/and recruitment agencies:
Post unskilled jobs or misleading advertisements which do not represent the available and genuine job opportunities for them
Refer to the government’s Emiratisation policies and their benefits unless they have obtained prior permission from MoHRE
Provide information on the government incentives and support programs offered to nationals in the private sector.
Obligations on hiring UAE Nationals:
When hiring Emiratis, employers must provide them with appropriate workplace and tools, and minimum on-the-job training to enable them to perform their duties. Additionally, they must:
obtain a work permit for the Emirati from MoHRE
conclude an employment contract with him/her
pay the salary in accordance with the Wages Protection System
register the Emirati in the pensions and social security system and start contributing to it within a month from the date of issuance of his/her work permit
report amendments (if any) to the employment contract that may affect the eligibility requirements for the ‘Nafis programme’.
Upon termination of the employment contract, the employer must cancel the work permit of the national immediately. Employers must not:
deduct Emiratis’ salaries under the pretext of benefitting from the government’s support program
Source: Ministerial Resolution No. 663 of 2022 Regarding Compliance with Emiratisation Regulations in the Private Sector (PDF, 634 KB) for more information. pay lower salaries to the Emirati in comparison to his/her counterparts in the same position.
What is NAFIS?
Nafis is a governmental federal program aimed at increasing the competitiveness of Emirati human resources and empowering them to occupy jobs in the United Arab Emirates’ private sector over the next five years. It is launched as part of the “Projects of the 50”, which aims to accelerate the development journey of the UAE.
NAFIS contribution to UAE Nationals salaries and compensations:
If the UAE national's salary is less the AED 20,000 per month, he/she will receive the following additional financial support based on the highest educational degree he/she has:
University degree holders: up to AED 7,000 per month.
Diploma degree holders: up to AED 6,000 per month.
High school certificate holders: up to AED 5,000 per month.
If the UAE national's salary is between AED 20,000 to AED 30,000 per month, he/she will receive the following additional financial support based on the highest educational degree he/she has:
holders: up to AED 3,5000 per month.
Diploma degree holders: up to AED 3,000 per month.
High school certificate: up to AED 2,500 per month.
We shall keep updating the details and information as soon we notice and receive updates.
How can Tanmyah Consultancies support you in your Emiratisation journey?
Recruiting top talented and qualified UAE nationals" with less hassle, cost, and time.
Training, and developing: to ensure full alignment with workforce requirements in terms of soft skills, competencies, and technical training.
Coaching, mentoring, and career counseling: to make sure of full adaptation of talented UAE nationals into the workforce, and scale culture intelligence.
Job readiness program.
What are you waiting for, contact us and scale up.