43 days from the start of collecting violations of the “nationalization targets”
Emiratisation increases by 6% annually, raising the classification of establishments to the “first category”
"Human Resources" encourages establishments to resettle with "incentive measures".
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Farida Al Ali: "Facilities that do not comply with the settlement targets are awaiting punitive administrative measures."
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The Ministry of Human Resources and Emiratisation called on private sector companies, which have 50 employees or more, to quickly meet the Emiratisation targets set at 2% annually, 43 days before the start of the due date for collecting violations or monthly contributions, which amount to 72 thousand dirhams annually for each citizen. He was not employed, stressing that there are a number of incentive measures against establishments that succeed in doubling the Emiratization rates owed to them to 6% annually, most notably raising their classification automatically within the “first category” of classification of establishments.
In detail, the Assistant Undersecretary for Employment of National Human Resources, Farida Al Ali, stated that “Nafis” aims to encourage citizens to enter the private sector field, and to benefit from the largest possible level of government empowerment and support.
And Al Ali stressed, in a media statement, the importance of the employers’ commitment to preserving the national cadres already working for them, and working to increase them by at least 10% during the next five years, pointing out that Ministerial Resolution No. (279) of 2022 set a minimum for rates The annual Saudization of private sector establishments that includes 50 skilled workers or more, starting from employing one citizen in the establishment whose skilled labor does not exceed 50 workers, two citizens in the establishments that include from 51 to 100, and three in the establishments that include from 101 to 150 .
She said that establishments that adhere to these percentages are included in the second category of classification of establishments, while establishments that do not comply with the localization targets are awaiting punitive administrative measures, including dropping the classification of the establishment to the third category, and applying fines as of next January, (i.e. after 43 days) amounting to 72 thousand. Dirham annually for each citizen employee who was not appointed in the establishments.
She added that establishments that double their targeted localization rates to 6% annually, are awaiting incentive administrative measures, the most important of which is the automatic upgrade or upgrading of their classification within the first-class facilities, which qualifies them to benefit from the maximum incentives and exemptions provided by the Ministry and the “Nafes” program, according to their consistency with priorities. The national economy and programs for Emiratisation and the promotion of priority sectors, explaining that the establishments eligible for these incentives are those that employ three citizens, instead of employing one citizen for every 50 skilled workers in the establishment, as a “voluntary” minimum for Emiratisation targets.
4 conditions for calculating localization rates
The Ministry of Human Resources and Emiratisation confirmed that the calculation of Emiratization rates at employers is carried out according to four conditions. The first is that the citizen has a valid work permit, and the establishment pays his wages through the Wage Protection System or any other approved system, and that the citizen is registered with one of the approved pension funds. In the country, and finally, that the relationship between the citizen and the establishment be a contractual relationship that fulfills all terms and conditions.
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