Abu Dhabi: The Ministry of Human Resources and Emiratisation said private sector companies in the United Arab Emirates (UAE) need to hire more Emiratis by July 1 or face fines.
The Ministry of Human Resources and Emiratisation sent out a reminder informing private sector companies that they have less than four months to achieve the new targets or face fines.
By the end of 2022, UAE companies were instructed to ensure that at least 2 percent of employees are Emiratis.
This number should increase by another 2 percent each year until it reaches 10 per cent in 2026.
However, a UAE cabinet decision changed the rule earlier this year.
The annual emirate target is now divided throughout the year by 1 percent in the first six months of the year and the other 1 percent in the second half.
MoHRE tweeted, “A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with 50 employees or more came into force.”
“The overall mechanism for achieving the targeted Emiratisation rates has not changed; it became semi-annual instead of annual. Companies with 50 employees or more are required to achieve an increase of 1 percent of skilled jobs every six months and reach a growth rate of 2 percent by the end of the year,” MoHRE adds.
MoHRE continued, “The annual 2 percent Emiratisation growth for skilled jobs in 2022 for private sector companies and the 10 percent goal for 2026 have not been changed in this resolution.”
“The resolution aims to accelerate achieving Emiratisation targets and employing UAE nationals in the private sector throughout the year,” MoHRE added.
Currently, companies that fail to meet the targets will be fined 6,000 Dirhams (Rs 1,33,389) per month or 72,000 Dirhams (Rs 16,00,668) per year. The fine will be paid in one installment.
The value of monthly fines imposed on private sector entities will gradually increase at a rate of 1,000 Dirhams (Rs 22,231) per year until 2026.
