May 19, 2022
UAE to Impose Fines on Employers That Do Not Meet Enhanced Emiratisation Criteria
The UAE Cabinet has recently announced it will impose fines on private sector firms that do not meet the newly enhanced Emiratisation criteria while at the same time offering incentives to firms that do meet the criteria. From January 2023, non-compliant firms will be fined AED 600 per month for ever citizen that has not been employed based on the increased Emiratisation rate of 2% for high-skilled jobs in firms that employ 50 workers or more.
The new set of resolutions aim to increase the competitiveness of the local workforce and facilitate the recruitment of UAE citizens as they expect to create more than 12,000 job opportunities annually across various sectors. Those that do meet the enhanced criteria and make achievements in employing and training Emirati citizens will receive incentives such as a reduction in the Ministry of Human resources and Emiratisation service fees of 80%.
The resolutions have been created in line with the aims of Nafis, the federal program that works to promote the private sector employment of Emirati nationals. Nafis offers several benefits such as:
- The Emirati Salary Support Scheme for UAE citizens which provides a one-year salary support of AED 8,000 per month during training and up to AED 5,000 per month for up to 5 years for graduates.
- Provision of a salary top-up for UAE citizens specializing in coding, nursing and accounting.
- Subsidize a five-year government-paid contribution on the company’s behalf against the cost of pension plans for Emirati staff and full support for the Emirati’s contribution across the first five years of their employment.
The Secretary-general of the Emirati Talent Competitiveness Council, Ghannam Al Mazrouei, has said they wish to increase Emiratisation until private sector firms achieve a target of 10% by 2026.
For further information on immigration in the United Arab Emirates, please contact the Sterling Lexicon immigration team.
As Head of Immigration with Sterling Lexicon, Leanne leads a team of specialists who are responsible for ensuring the entire immigration process is smooth and stress-free for clients, assignees and their accompanying family members. She brings over ten years of experience in strategic immigration management, planning and consultation to her role, and has cultivated invaluable knowledge and experience in processing countless global migration applications. As a trusted partner, she consults with clients on everything from policy considerations and cost or efficiency improvements, to the impact of opening offices in new locations. Leanne is a frequent presenter and author on global immigration topics and trends.