Fines for failing to meet Emiratisation target increased annually to $2,700 per unemployed citizen

Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, assured that even after 2026, the momentum towards Emiratisation in the private sector will continue. The federal law aims to increase the emiratization rate by 2% annually, reaching 10% by the end of 2026. Non-compliant companies face fines of thousands of dirhams for every Emiratis they fail to employ.

With the full support of the visionary leadership, the Minister affirmed that the Emiratization process will maintain its current pace, ushering in a new era of job opportunities for UAE citizens.

During a discussion at the Federal National Council (FNC), Dr Al Awar responded to a query on the employment prospects of citizens in the private sector after 2026.

He clarified that Emiratisation of the private sector requires a comprehensive set of policies with continuous evaluation of its mechanisms. This commitment to continuous improvement ensures that UAE citizens will continue to be integrated into the private sector workforce.

Under the emiratization target announced by the ministry, companies with 50 or more employees must achieve 3% emiratization of skilled jobs by June 30, 2023 and 4% by the end of the year.

The annual target is divided by 1% for the first six months and 1% for the second half of the year.

Last year, the ministry fined companies Dh6,000 for non-compliance. Every year, this figure increases by Dh1,000 per year.

Non-compliant employers will face fines of Dh7,000 per month for not hiring every Emiratis by 2023. This will increase to Dh8,000 in 2024, Dh9,000 in 2025 and Dh10,000 in 2026.

Addressing concerns over potential wage differentials, the minister highlighted that companies that fail to meet the emiratization ratio will face fines after 2026. These fines, equivalent to Dh10,000 per month for each non-appointed Emiratis, strengthen the government’s resolve to enforce the required level of emiratization.

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