Employers to bear pension contributions for Emirati employees

The Nafis programme has announced a new set of updates, effective from September, under which private-sector employers will assume their full share of pension fund contributions for Emirati employees enrolled in the Ishtirak programme, subject to the programme’s eligibility conditions.

In an explanatory statement outlining the latest updates, Nafis noted that employers’ contributions were previously introduced on a gradual basis, starting at 0% in the first year, followed by 2%, 4%, 5%, and 6% in subsequent years.

The programme also explained that Nafis’ support for Emirati citizens’ pension contributions has been revised. The previous schedule of gradually increasing support percentages has been removed, with the programme now focusing solely on assisting Emirati employees with their own contributions to pension funds.

Nafis emphasized that the concept of a fair salary is intrinsically linked to the long-term protection of Emirati employees in the private sector. Professional stability, it said, is achieved not only through monthly income, but through an integrated framework that includes pension registration, safeguarding employment rights, and providing a clear path for career growth and professional development.

Gradual Transition

According to the programme, these changes represent a gradual shift towards reinforcing employers’ responsibility for protecting their Emirati workforce, ensuring that the employment relationship extends beyond the monthly salary.

“Pensions constitute one of the most important pillars of long-term financial and job security. Linking pension protection to private-sector employment enhances the attractiveness of the sector for Emirati citizens,”  Nafis said.

The programme stressed that participation in pension schemes provides Emiratis with greater confidence and stability, reinforcing that employment in the private sector is not a temporary or less secure option, but rather a sustainable career path capable of delivering income, experience and future protection, provided that all stakeholders fulfil their respective responsibilities.

Enhancing the Quality of Emiratization

Addressing quality Emiratization, one of the key pillars of the latest reforms, Nafis said the updates shift the focus from simply increasing the number of Emiratis employed in the private sector to improving the quality of jobs they occupy.

“Sustainable Emiratization is not measured solely by the number of Emiratis employed, but by ensuring that the jobs they hold are meaningful, fairly compensated, and offer opportunities for career advancement and long-term stability,” the programme said.

It added that separating salary obligations from government support represents a significant step towards strengthening the quality of Emiratization. When employers assume full responsibility for salaries and recognise Emirati employees as valuable contributors to their organizations, Emiratization becomes an integral part of corporate strategy rather than merely a compliance requirement.

This approach is expected to strengthen companies’ ability to attract and retain Emirati talent, particularly in sectors requiring specialized expertise and long-term career pathways, while encouraging Emiratis to view the private sector as an environment that offers genuine opportunities for professional growth.

Nafis noted that this shift comes after the programme achieved significant success in increasing Emirati employment, adding that the next phase will place greater emphasis on sustainability, employee retention, high-quality employment opportunities, and career development.

Skills Development

Nafis clarified that responsibility for the next phase extends beyond employers to include programme beneficiaries themselves.

This highlights the importance of sound financial planning, continuous skills development, and making full use of the training and qualification initiatives offered by Nafis, including the Kafa’at (Competencies) programme, the Khibrah (Experience) programme, employment-focused training initiatives, and other programmes designed to improve Emiratis’ readiness and competitiveness in the labour market.

The programme said that career advancement and higher earnings are key indicators of beneficiaries’ successful utilisation of Nafis opportunities. The more Emiratis invest in developing their skills, the greater their prospects for promotion, improved income, and building more stable and sustainable careers.

Empowerment Framework

The latest updates redefine the relationship among the stakeholders within the Emiratisation ecosystem on a more balanced basis.

Under the revised framework, Nafis provides enabling tools, supportive policies and programmes, employers are responsible for offering fair salaries and appropriate working environments, while Emirati employees are expected to continuously develop their skills and build their professional careers.

According to Nafis, this balanced approach forms the foundation of the programme’s next phase, recognising that no single party can achieve sustainable Emiratisation independently.

Government support requires employers that are genuinely committed to investing in national talent; employers need Emirati employees who possess the necessary skills, commitment and ambition to grow; and Emiratis require fair workplaces that recognise their contributions and provide opportunities for career advancement.

Investing in National Talent

The latest Nafis updates send an important message to the labour market regarding the future direction of Emiratisation.

The private sector is encouraged to view Emirati citizens as a vital component of its human capital and to regard Emiratisation as a long-term investment in national talent.

At the same time, the updates provide companies with a clearer framework for interacting with government support mechanisms, enabling them to establish more transparent salary policies and plan their national workforce requirements on a more sustainable basis.

The reforms also strengthen Emiratis’ confidence in private-sector employment by reaffirming that government support is designed to complement—not replace—their employment rights. They underscore the UAE’s commitment to building a more balanced labour market that combines opportunity, protection, empowerment and sustainability.

Sustainable Empowerment

Ultimately, the latest Nafis updates mark a clearer distinction between salary obligations and government support.

Employers remain fully responsible for paying salaries, while government support serves as a complementary empowerment tool. Professional development, meanwhile, remains a shared responsibility between Emirati employees, the Nafis programme and employers.

The significance of this phase extends beyond financial arrangements. It reinforces a broader vision of Emiratisation built on quality employment, fair wages, pension protection, continuous skills development, and enhanced attractiveness of the private sector for Emirati talent.

As Nafis continues its mission through 2040 as the UAE’s national platform for empowering Emirati talent, the latest reforms reaffirm that sustainable Emiratisation depends on building a more mature labour market—one in which employers fulfil their responsibilities, Emiratis invest in developing their capabilities, and government provides the enabling framework that transforms Emiratisation from an employment initiative into a long-term national development project.