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Emiratisation in UAE: Dh42,000 fine to apply from July 8 for not meeting half-yearly deadline
Private sector companies with 50 employees or more must register a 1% growth in the number of Emiratis working in skilled roles
Fines for not meeting the semi-annual Emiratisation deadline will be applied to firms from July 8, the UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced.
The ministry reiterated that Friday, July 7, is the deadline for private sector companies with 50 employees or more to have registered a 1 per cent growth in the number of Emiratis working in skilled roles.
“Non-compliant entities will face a financial contribution/fine of Dh42,000 for each Emirati who has not been employed, along with the remaining financial contributions from 2022,” the MoHRE said in a statement.
Companies are required to add 2 per cent of Emiratis to their workforce every year until 2026. Earlier this year, a new mechanism was announced, where the annual target is split into two: Add 1 per cent in the first half of the year and the other 1 per cent in the second.
This year, the ministry extended the deadline for meeting semi-annual Emiratisation targets from June 30 to July 7, taking into consideration Arafat Day and Eid Al Adha holidays.
The MoHRE had issued fines amounting to Dh400 million against private companies that failed to meet their Emiratisation targets of 2022.
Every year, the fines for not meeting the target increase by Dh1,000 per month per Emirati not hired. The penalty was Dh6,000 last year, and this year, it’s Dh7,000. This will increase to Dh8,000 in 2024, Dh9,000 in 2025 and Dh10,000 in 2026.
The ministry called on entities that have yet to meet the required Emiratisation target to make use of the Nafis platform and the support it provides.
“We also call on companies to begin working towards Emiratisation targets for the second half of 2023, where they will be required to achieve an additional 1 per cent Emiratisation growth in skilled jobs,” the ministry added.
As per data released in May, the mandatory Emiratisation drive has helped boost the number of UAE citizens working in private sector firms. Over 66,000 Emiratis now have private-sector jobs.
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