Emiratisation in UAE: Firms to be penalised for not meeting targets before end of the year
Dh72,000 for each Emirati not employed will be collected starting January 2023 from non-compliant companies
The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) today called on companies with more than 50 employees to expedite achieving Emiratisation rate of 2% for skilled jobs before the end of 2022.
Non-compliant companies will face financial penalities, which will be collected starting from January 2023. In a Tweet the authority said Dh72,000 will be collected for each Emirati not employed starting January 2023 from non-compliant companies.
MoHRE encouraged companies to benefit from the incentives provided for recruiting UAE nationals through the Nafis platform, saying it will boost their efforts in reaching the required rate before the deadline.
Incentives and penalties
MoHRE offers private sector companies that reach the Emiratisation target a package of incentives, including the first category classification and membership of the Tawteen Partners Club within the establishments classification system where members receive discounts of up to 80% on the ministry’s service fees.
However, financial penalties will be imposed on establishments that do not meet the required Emiratisation rate – a monthly penalty of Dh6,000 for every UAE national that has not been appointment, starting from January 2023.
This year’s 2% Emiratisation rate is calculated as for every 50 non-Emiratis working in skilled jobs, one UAE national shall be hired. This decision aims to achieve an increase by 10% in the Emiratisation rate by 2026.
- Emiratisation of jobs is a fundamental function of UAB strategy