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UAE Private sector firms to face Dh 6000 monthly fines for not hiring Emiratis

25 October 2022

The UAE Ministry of Human Resources and Emiratisation (MoHRE) has urged private sector companies to achieve their Emiratisation targets by the end of this year. The companies failing to abide will have to comply or face penalties.

Companies with more than 50 employees should ensure that 2 percent of their employees are Emiratis prior to 2023. This initiative is inline with the Government’s Nafis initiative.

The MoHRE has requested private sector companies to achieve Emiratisation targets towards end of 2022, failing which, they will face financial penalties.

Private sector companies failing to achieve their Emiratisation targets will have to pay penalty of Dh.6000 per month, for each Emirati that they failed to hire. The fines will increase every year.

The UAE Minister of Human Resources and Emiratisation said that the fines will be raised by Dh.1000 annually from 2023 onwards.

MoHRE recently held a meeting with representatives of 232 private sector firms to listen to their suggestion and challenges and look into avenues to expedite achieving the Emiratisation target in private sector.

During this meeting, the Ministry officials emphasized that they will not spare any effort in supporting the private sector firms, as these firms are the cornerstone of UAE’s development journey.

In accordance with the ‘Nafis’ initiative by the government, Emirates should ensure that at least 10 percent of private sector firms constitute Emiratis by the year 2026.

The Nafis initiative offers several other benefits including the Emirati Salary Support Scheme, wherein the UAE nationals would be offered one-year salary support up to Dh8000 per month during training and monthly support of Dh.5000 would be paid up for up to five years for university graduates.

The programme offers UAE nationals specialized in fields such as nurses, coders and accountants with a top-up on their existing salaries.

The programme also offers subsidised five-year government-paid contribution on company’s behalf against the cost of pension plans for Emirati staff and full support for the Emirati’s contribution across the first five years of their employment.

Robin Vinod

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

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