Emiratisation targets: UAE companies to be penalised if norms are not met before end of ‘22
The ministry will start collecting the financial penalties starting from January 2023
Dubai: The Ministry of Human Resources and Emiratisation (MoHRE), on Thursday, called on companies with more than 50 employees to expedite achieving Emiratisation rate of 2 per cent for skilled jobs before the end of 2022.
Non-compliant companies will face financial penalities, which will be collected starting from January 2023.
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.
“We are keen to support and empower private sector companies to achieve the Emiratisation targets before the end of this year, we cooperating closely with the private sector, stemming from our belief in its role as a key partner in developing and shaping the future,” said Saif Al Suwaidi, Undersecretary for Emiratisation at MoHRE. “Given the private sector’s role in the UAE’s job market, achieving the goals and directions of the UAE require unified efforts of government entities and the private sector to improve the business environment and create an investment climate that encourages companies, investors, entrepreneurs, and talents from all over the world to work in the UAE, especially in the strategic priority sectors,” he added.
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 per cent 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 per cent 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 per cent in the Emiratisation rate by 2026.