Private companies to pay Dhs84,000 for each Emirati not hired in 2023

Abdulrahman Saeed, Staff Reporter

Ghannam Al Mazrouei, Secretary General of the UAE National Competitiveness Council “Nafis,” stressed that paying monthly fines by private companies not adhering to the Emiratisation rates does not exempt them from paying the full amounts, and if they do not pay them during 2024, their classification will be reduced to the third category, even if they were in the first.

He also indicated that in case an entity does not meet the set nationalisation percentage for the current year 2023, a fine of Dhs84,000 will be imposed on it for each citizen who has not been employed, at the rate of Dhs7,000 per month.

Al Mazrouei explained that 7,000 private companies employed citizens in early 2022, and by the end of the same year the number jumped to 14,000 companies, with an increase of 100%.

He added, “Companies having 50 or more skilled workers, and do not comply with fulfilling the Emiratisation targets for last year (2% of the total skilled workforce), will pay fines of Dhs72,000 for each citizen who has not been employed, with a rate of Dhs6,000 per month, while continuing to be obligated to fulfill the nationalisation per cent for the past two years, 2% for each year, which means that paying the fines does not mean exempting the company from fulfilling the rates for employing Emirati cadres.”

Al Mazrouei also indicated that the Council seeks, in cooperation with partners, to raise the percentage of Emiratisation in the private sector this year from 70% to exceed 80%, pointing out that the total number of citizens currently working for the private sector has exceeded 51,000 citizens.

Recently, the Emirati Talent Competitiveness Council Board (ETCCB) reviewed some of the policies and decisions issued since the launch of Nafis, the most important of which included the Cabinet’s decision to establish the Emiratisation targets and impose fines on establishments that are not committed to achieving the set targets, and transferring them to the Nafis Fund.

The ETCC Board also reviewed the results of the set 2% Emiratisation target in the private sector by the end of 2022, and data showed that a total number of 8,897 companies have reached the 2% Emiratisation target or more, while the total contributions due in January 2023 from companies that have not achieved the required target in 2022 amounted to approximately Dhs400 million.

In addition to the decision to establish the Nafis Fund, the decision regarding violations and penalties applied by the Council, and the eligibility updates for the benefits provided by Nafis and the increase in salary top-ups and child allowance.