Dh42,000 fine: Penalty for UAE companies not meeting Emiratisation targets explained

Private sector companies in the UAE have a little more than a month to achieve their semi-annual Emiratisation targets.

“If your company has 50 employees or more, it’s time to achieve 1 per cent Emiratisation of skilled jobs before June 30, 2023,” the Ministry of Human Resources and Emiratisation (MoHRE) said on Monday.

Companies with 50 employees or more were required to have 2 per cent Emiratis in skilled roles by the end of 2022. By June 30 this year, they need to up the number of Emirati employees by 1 per cent, bringing the total to 3 per cent.

Starting July 1, fines will be imposed on non-compliant companies.

The fines explained

In a video, the MoHRE explained how the fines are calculated. “Non-compliant companies face Dh42,000 fines for each Emirati not employed,” the ministry said.

The calculation is Dh7,000 per month for 2023 – up from Dh6,000 last year. The fines will increase by Dh1,000 annually until 2026.

A federal law aims to raise Emiratisation rates by 2 per cent annually to reach 10 per cent by the end of 2026. The UAE had amended the mechanism for achieving the targets. The annual target is divided by 1 per cent in the first six months and the other 1 per cent in the second half of the year.

This means that by the end of the year, companies must have 4 per cent Emiratis in skilled roles.

The good news

If companies have not achieved their targets, it’s not too late, the MoHRE said.

“Register on the Nafis platform and benefit from the database of Emirati job-seekers,” the ministry explained.

The Nafis scheme is a federal initiative to increase the competitiveness of Emiratis and empower them to occupy skilled jobs in the country’s private sector. It encompasses a wide range of financial incentives to drive work opportunities for both young and experienced Emiratis.

In January this year, the MoHRE said it issued fines amounting to Dh400 million against private companies that failed to meet Emiratisation targets of 2022. Establishments were fined Dh72,000 for each Emirati that was not hired.

As on May 17, nearly 68,000 Emiratis have been hired by private sector companies.