Dh42,000 Fine for Companies Not Meeting Emiratisation Target
- Publish date: Thursday، 27 April 2023
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The Ministry of Human Resources and Emiratisation (MoHRE) has set a deadline for private sector companies in the UAE to meet their Emiratisation targets.
Companies with 50 or more employees must have at least 1% Emiratis in skilled jobs by June 30, 2023, in addition to the 2% Emiratisation they were supposed to have achieved by the end of 2022. Non-compliant companies will face fines starting from July 2023, with a penalty of Dh42,000 for every Emirati not hired. The fines will increase by Dh1,000 annually until 2026.
The UAE aims to reach an Emiratisation rate of 10% by the end of 2026, and companies have to achieve 3% Emiratisation in skilled roles by June 30, 2023, and 4% by the end of that year.
Aisha Belharfia, who holds positions as the acting undersecretary for Emiratisation Affairs and assistant undersecretary for Labour Affairs, has emphasized the importance for private sector companies to meet their half-yearly Emiratisation targets in order to avoid fines. Belharfia has urged companies to make use of the support provided by Nafis, a program that helps in hiring Emirati talents for skilled jobs.
She further stated that the private sector plays a significant role in improving the job market's competitiveness and attractiveness, which aligns with the UAE's vision to become a dynamic economic hub that is sustainable and fast-growing.
Companies that exceed the Emiratisation targets have the opportunity to join the Tawteen Partners Club, which will improve their ranking to Category 1. Joining this club will enable them to receive discounts of up to 80% on ministerial fees.