New Emiratization Rule in UAE: Fines, Discounts, Benefits Explained
As the UAE continues to introduce multiple labour reforms to attract talents from around the world, the country’s leadership is ensuring that Emiratis remain an active part of the workforce. On Monday, the UAE Cabinet adopted a set of incentives to boost Emiratization rates in private sector establishments.
The resolutions are part of ‘Nafis’, a federal scheme to boost the number of UAE citizens in the private sector. Here is all you need to know.
What’s the New Emiratization Rate for Private Sector Firms?
According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the country has set a “minimum” Emiratization rate of 2 percent annually from high-skilled jobs in establishments having more than 50 employees. The aim is to raise this rate to 10 percent by 2026. This will create more than 12,000 job opportunities annually for citizens in all economic sectors.
Massive Discounts on Service Fees
Among the incentives for private sector establishments that exceed their Emiratization targets is an 80 percent reduction in service fees of the Ministry of Human Resources and Emiratization. This discount will be offered to firms that “accomplish major achievements in terms of recruitment and training of Emirati citizens”.
Are There Any Fines for Firms That Don’t Meet Targets?
Yes. From January 2023, non-compliant companies will have to pay an amount of Dh6,000 per month for every citizen vacancy that has not been filled.
Salary Support
Nafis has an Emirati salary support scheme. UAE citizens will be offered one-year salary support of up to Dh8,000 per month during training. University graduates will get monthly support of up to Dh5,000 for up to five years.
The programme provides Emirati coders, nurses, and accountants with support in addition to their existing salaries.
Pension Support
The programme also offers a subsidized five-year government-paid contribution on the company’s behalf against the cost of pension plans for Emirati staff.
Child Support
Nafis also offers a monthly grant of Dh800 per child per month — with a maximum of Dh3,200 — for Emiratis working in the private sector.
Here are related links to this article for your reference:
- UAE: Visas, Residency Permits That Don’t Require a Sponsor for Entry
- UAE: Can I Sponsor My Widowed Mother’s Visa if My Salary is Less Than Dh20,000?
Disclaimer: The information contained in this presentation is for general informational purposes only related to any governmental updates.
We do not own such content and it is all credited to the news provider, Al Khaleej News (https://www.khaleejtimes.com/).
Here are related links to this article for your reference:
Disclaimer: The information contained in this presentation is for general informational purposes only related to any governmental updates.
We do not own such content and it is all credited to the news provider, Al Khaleej News (https://www.khaleejtimes.com/).
