Pvt firms not meeting Emiratisation rate to face annual spike in fines
Private companies that do not comply with the UAE’S two per cent Emiratisation target will see an incremental rise in fines year on year from 2023, a UAE minister has said.
Detailing the UAE’S latest cabinet resolutions, Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said private firms with 50 workers or more should have a 2 per cent Emirati workforce in high-skilled jobs by next year. This target will be increased by two per cent every year till a 10 per cent quota is achieved in five years.
Non-compliant firms will pay a Dh6,000 fine per month per Emirati worker short of the target. For example, if a firm has 200 staff and two Emiratis, going by the 2 per cent target next year, the firm should have four Emiratis — ie, it is short by two Emiratis. So the fine will be Dh6,000x2 (Dh12,000).
This fine per worker less than the target will rise by Dh1,000 every year starting from January 2023.
“If a company fails to secure a 2 per cent Emirati workforce, it will pay Dh6,000 fine every month in 2023 for every Emirati short of the target.
“If the required Emiratisation rate is not achieved by the following year, the fine will increase to Dh7,000 a month for each Emirati worker short of the target,” explained Al Awar. The fines will reach Dh10,000 a month per worker short by 2026.
On the other hand, incentives are also being offered to companies with a high Emiratisation rate, including an 80 per cent reduction of fees for issuing and renewing work permits and visas.
Earlier this week, the UAE Cabinet approved increasing the Emiratisation rate to 2 per cent annually under NAFIS programme, which aims to ensure that 10 per cent of the private sector workforce are Emiratis by 2026.
Dr Al Awar said there are currently 31,000 Emiratis working in the private sector.
The 2 per cent Emiratisation rule will require companies to hire one citizen for every 50 workers. “This is very practical and easy to achieve,” he said.private-sector jobs for Emiratis will, therefore, account for 12,000 from the 1.2 million work permits that the ministry issues every year, added Al Awar.
He stressed that the Dh24 billion salary support schemes, pension programmes, training initiatives and unemployment benefits provided for Emiratis under NAFIS programme remove additional costs of hiring Emiratis in the private sector.
While the government sector is still the main employer for Emiratis, Al Awar said the number of citizens working in the private sector is expected to increase over the coming years.
“With the technological advancements, the private sector is expected to provide new types of jobs. We want citizens to be part of this growth,” he noted.