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FINES, DISCOUNTS, AND BENEFITS UNDER EMIRATISATION RULE 2022

FINES, DISCOUNTS, AND BENEFITS UNDER EMIRATISATION RULE 2022

“Citizenship is the chance to make a difference to the place where you belong.”- Charles Handy. UAE continues to bring numerous labour reforms to attract talented personnel from around the globe, and the country’s leadership is making sure that Emiratis remain an active part of the workforce. The UAE Cabinet adopted a set of incentives to boost Emiratisation rates in private sector establishments in the country. The resolutions are part of ‘NAFIS’, a federal scheme to magnify the number of UAE citizens in the private sector workforce.

According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President & Prime Minister of the UAE and Ruler of Dubai, the country has set a minimum Emiratisation rate of 2% annually for high-skilled jobs in establishments having more than 50 employees and the aim is to raise this rate to 10 per cent by 2026. This will create not less than 12,000 job opportunities annually for citizens in all economic sectors. Some perks of following the new rules are as follows:

Discounts available:
Private Sector Establishments that exceed their Emiratisation targets can have up to an 80% reduction in service fees of the Ministry of Human Resources and Emiratisation (MOHRE) like fees for issuing and renewing work permits and visas. This discount in service fees will be available to firms that accomplish major achievements in terms of recruitment and training of Emirati citizens”.

Benefits to be granted:

  1. Salary support has also been introduced. ‘NAFIS’ has an Emirati salary support scheme in which the UAE citizens will be offered 1-year salary support of up to AED 8,000/month during training. University graduates will get monthly support of up to AED 5,000 for up to 5 years. The programme provides Emirati coders, nurses and accountants with support in addition to their existing salaries to boost work culture.
  2. The programme also offers pension support which is a subsidised 5-year government-paid contribution on the company’s behalf against the cost of pension plans for Emirati staff.
  3. ‘NAFIS’ also offers a child support scheme, meaning, a monthly grant of AED 800 per child per month with a maximum of AED 3,200 for Emiratis working in the private sector will be granted.

Fines to be imposed:
Private companies which do not comply with the UAE’s 2% Emiratisation rate will pay heftier fines year after year, a UAE Minister announced. From January month of the next year, non-compliant companies will have to pay an amount of AED 6,000/month for every vacancy that has not been filled by the citizen of the country. If the required Emiratisation rate is not achieved by the following year, the fine will increase to AED 7,000 a month,” explained Al Awar. Fines would reach up to AED 10,000 a month by 2026.

BSB Legal Consultants, the best Law firm in Dubai, believe that firms & companies should comply with the new Law as soon as possible. Our top lawyers in UAE could help in drafting perfect employment contracts and assist in complying with the above-mentioned schemes and Rules. Contact us at info@bsb.legal or call us at +97150 8014003.

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