Are you well-prepared to increase the Emiratis ratio of employees in the private sector?
Emiratization means the employment of UAE citizens and is one of the government’s highest priorities.
Emiratization is a national workforce policy in the UAE that aims to increase Emirati employment in the private sector.
employers with more than 50 Employees and their commitment by Ministerial decree No 279 for 2022
If you are an Establishments registered with the Ministry of human resources and Emiratisation and If you are employing more than 50 employees,
Then, you should increase the current Emiratisation rate from high-skilled jobs by 2 percent annually, gradually raising the rate to 10 percent by 2026.
The prescribed Emiratisation percentage in the private sector shall be calculated based on the total number of UAE nationals working in the establishment from the total number of skilled employees,
Furthermore, provided that at least one UAE citizen you should employ against every 50 skilled employees or part of which, for each year of implementation, as follows:
Employees in Establishments Employing More Than 50 Employee | Minimum Employment Rate of UAE Nationals |
0 to 50 skilled employee | One Citizen |
51 to 100 skilled employee | Two Citizens |
101 to 150 skilled employee | Three Citizens |
More than 151 skilled employee | One citizen for every 50 skilled employees or part of which |
The targeted percentage of Emiratisation in establishments shall increase gradually by 2 percent as of 2023 until achieving the desired rate of 10 percent by 2026 under Clause (2) of this Article.
Emiratisation percentage you shall calculate under the provisions of this resolution based on the number of work permits registered in the Ministry’s approved systems issued for UAE nationals, as per the following requirements:
The UAE national must possess a valid work permit.
You will pay The UAE national wage through the Wages Protection System or any other system approved by the competent authorities in the country to ensure compliance with the payment of salaries.
You will register the UAE national with one of the approved pension funds in the country.
The relationship between the UAE national and the establishment shall be contractual, satisfying all the terms and conditions of the Labor Relations Regulation Law, its executive regulations, and all decisions and orders issued in implementation.
Furthermore, the Article (3)
Collection Mechanisms of Assessed Contribution from Non-Compliant Establishments
Non-compliant establishments with the stipulated Emiratisation rates contained in Article (2) hereinabove shall pay Dh6,000 monthly starting January 2023 for every citizen who has not been employed under Cabinet Resolution No.(19/ 5m) of 2022 referred to. The amount of the monthly contribution shall increase progressively by Dh1,000 each year.
The establishment shall be considered non-compliant if the required number of employed citizens is not maintained until the following year.
The establishment shall be obliged to pay the assessed contribution unless the Emiratisation percentage and the required numbers of employed citizens are re-achieved within two months from the date of its decline.
The contribution shall be due at the beginning of the following year for the number of citizens required to be employed to achieve the necessary Emiratisation rates under the criteria as mentioned earlier. The total amount of the contribution for the year in which the required Emiratisation percentage was not achieved shall be paid annually and in one payment.
Ministry will take action If the establishment fails to pay the assessed contribution referred to in this Article;
Deadline | Action |
1. On the due date | The establishment shall be placed under e-follow-up to ensure compliance with the payment of assessed contributions. |
2. The day following the due date | MOHRE may suspend the establishment’s issuance and renewal of work permits, and the employer will be advised of the reason for the suspension. |
3. The third, tenth, and seventeenth day after the due date | MOHRE shall send notices and reminders to the non-compliant establishment prompting it to recruit citizens and pay the assessed contributions. |
4. Two months after the due date | While continuing to suspend the issuance and renewal of work permits for the violating establishment, MOHRE shall stop issuing and renewing work permits for all sole establishments or companies owned exclusively by the owner of the violating establishment, taking into consideration the unity of partners. |
5. If the establishment fails to abide by the required Emiratisation rates for two consecutive years | The establishment shall be reclassified and downgraded to Category (3) according to the applicable criteria of classification approved by the Ministry. |
6. If the establishment commits any fraud or provides incorrect data, documents, or information | Fines stipulated in Cabinet Resolution No. (21) of 2020 and its amendments shall be imposed. |
4 – how much will you pay to cover the pension scheme;
An employee will pay 5 % of his salary; the employer has to deposit in the pension fund.
An employer will pay 12.5 %.
As a result, an employer will pay the following amounts;
Minimum salary = 6000
Contribution in pension scheme= 720
Total amount employer has to pay = 6720
For illustrations:-
https://4l.biz/abu-dhabi-labor-lawyers/
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https://ezz4law.com/
