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UAE Ministry slashes work permit fees by 94%

18 July 2019

The Ministry of Human Resources and Emiratisation (MOHRE), in its latest move, has slashed fees for its 145 services and transactions. The fees have been reduced anywhere from 50 to 94 percent, the Ministry has confirmed. This includes slashing of work permit fee by 94 percent, and this is in a bid to support business owners in the UAE, the Ministry confirms.

The reduced fees will be applicable for 145 services and 128 transactions, and out of these, 17 fees have been slashed by 50 percent to 94 percent.

The charges would be made effective through the Tas’heel, Tadbeer, Twa-foq and Tawjeeh centres, along with Taqyeem service.

The Ministry explained that the revised fee structure for issuing work permits is linked to a new classification system of companies, based on skill level and diversity of workers.

The new fee structure will make work permits more easy and affordable for businesses. This revised fee structure is linked to new classification system of companies that are devised based on skill level of workers.

UAE work permit fees

The classification is based on First, Second and Third categories, with the secondary category being split into levels A, B, C and D. While some fee has been reduced depending on category, some have been reduced for all categories.

It should be noted here that work permit fee for skilled labour employees continues to remain the same. But, fees have been slashed by half for all categories for a two-year work permit and renewal for skilled labour.

This reduction is considerably huge for businesses in third category, as they previously had to pay Dh.5000 fee for limited skilled labour two-year work permit for an employee sponsored by their parents.

The move also sets a fee of Dh.300 for applying for two-year work permits for those in the country through their parents' residency to work for various types of companies, irrespective of whether they are skilled or unskilled.

Below is a table indicating change in work permit fees for two year permits and two year renewals, based on business category and skill classification.

Note: The skilled and unskilled classification is based on the profession that one holds, which is based on the person holding an attested educational qualification certificate.

In case the business owner employs a GCC National or Emirati, and fishing boat facilities, will be exempted from paying the work permit fee.

The decree also reduced the annual license fee of employment agencies by 50 percent.

According to the Minister of Human Resources and Emiratisation, Nasser bin Thani Al Hameli, this is likely to improve flexibility of the labour market and meet the needs of private sector businesses.

The government is eager to improve the productivity of the labour market in the country by encouraging private business owners’ and investors’ to employ skilled, competent workforce, which is in-line with the objectives of National Agenda 2021.

Robin Vinod

Writer/blogger who writes on topics such as travel, real estate, employment and everyday life on GCC countries.

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