UAE: Fines for not meeting Emiratisation targets increase each year to reach Dh10,000 for every citizen not hired

During a discussion in the Federal National Council, the minister responds to inquiries regarding the future of citizen employment in the private sector after 2026.

Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, has reassured us that the momentum of Emiratisation in the private sector will continue even after 2026. A federal law aims to raise Emiratisation rates by 2 per cent annually to reach 10 per cent by the end of 2026. Non-compliant companies face fines of thousands of dirhams for every Emirati not hired.

With the full backing of the visionary leadership, the minister affirmed that the Emiratisation drive would maintain its current pace, ushering in a new era of employment opportunities for Emirati citizens.

During a discussion in the Federal National Council (FNC), he responded to inquiries regarding the future of citizen employment in the private sector after 2026.

He clarified that Emiratisation in the private sector entails a holistic set of policies, with ongoing evaluations of its mechanisms. This commitment to continuous improvement ensures that Emirati citizens will continue to be integrated into the private sector workforce.

As per the Emiratisation target announced by the Ministry, companies with 50 employees or more will have to achieve 3 per cent Emiratisation of skilled jobs before June 30, 2023, and 4 per cent by the end of the year.

The annual target is divided by 1 percent in the first six months and the other 1 per cent in the second half of the year.

Last year, the Ministry imposed a Dh6,000 fine on non-compliant companies. Each year, this increases by Dh1,000 annually.

In 2023, non-compliant employers will face a penalty of Dh7,000 monthly for not hiring each Emirati. This will increase to Dh8,000 in 2024, Dh9,000 in 2025, and Dh10,000 in 2026.

Addressing concerns about potential salary disparities, the minister highlighted that companies failing to meet Emiratisation ratios will face fines beyond 2026. These penalties amount to Dh10,000 per month for each Emirati not appointed, reinforcing the government's determination to enforce the required Emiratisation levels.

News Source: Khaleej Times