Emiratisation Guide For Companies With Over 50 Employees
The UAE is committed to integrating Emirati Nationals into the government and private sector. Emiratisation has been a pivotal initiative for UAE social and economic development. Emiratisation policy mandates companies to employ a certain percentage of UAE Nationals into their workforce. As the landscape of Emiratisation evolves, it is vital for all businesses, especially those with 50 or more employees, to stay informed and compliant with the latest regulations.
Aligning with the UAE’s Vision 2030, Emiratisation is a crucial component in achieving the UAE’s national development and economic diversification goals. By ensuring participation of the local Emirati workforce, the UAE aims to achieve long-term economic sustainability and resilience.
So, what does that mean for your business?
It’s an opportunity to allow further cultural integration within your workforce. The principals of Emiratisation encourage an environment that respects and integrates local cultural values. Adhering to Emiratisation targets is not only a legal obligation, but also a strategic advantage, if engaged correctly. It opens businesses up to a whole other skilled workforce.
What are the key dates to keep in mind?
30th June 2024 - This is the mid-year target where all companies with 50+ employees must have met their Emiratisation targets for the first half of 2024.
1st July 2024 - Starting from this date, the Ministry of Human Resources and Emiratisation (MoHRE) will intensify their verification processes. Failure to do so could result in substantial fines for non-compliance.
Companies who fail to meet deadlines will be subject to fines of up to AED 500,000. In 2024, this means that companies will incur fines of AED 42,000 for each Emirati not employed, which escalates to AED 120,000 for each worker in 2026 for non-compliance.
How To Achieve Emiratisation Compliance?
Companies must first understand the Emiratisation targets set out in line with MoHRE. All private sector companies must achieve a 1% growth of semi-annual Emiratisation (or 6% total workforce) targets in skilled jobs before the deadline on 31st December 2024.
The most important target dates to keep in mind:
- June 2024: 5% of total workforce should be Emirati.
- December 2024: 6% total workforce should be Emirati.
- June 2025: 7% of total workforce should be Emirati.
- December 2025: 8% of total workforce should be Emirati.
- June 2026: 9% of total workforce should be Emirati.
- December 2026: 10% of total workforce should be Emirati.
Companies can benefit from developing a strategic hiring plan. It is essential to evaluate roles within your organisation that can be effectively filled by Emirati nationals and utilise their skillset. Channels such as career fairs, recruitment agencies, NAFIS or MoHRE platforms can be used to find qualified candidates.
Nafis Portal
Employers can achieve compliance by benefitting from the NAFIS program. NAFIS is an initiative by the UAE Government designed to help enhance the employability and competitiveness of Emirati citizens. It allows employers to create job opportunities and leverage the platform to source qualified pools of Emirati nationals with the pre-requisite competencies to succeed in their jobs. It also offers training programs and salary support for Emirati nationals.
Pension Registrations & Emiratisation
The General Pension and Social Security Authority (GPSSA) is the governing used to manage contributions, pensions and end-of-service benefits for UAE nationals in Dubai, Ajman, Ras Al Khaimah, Fujairah, and Um Al Quwain. A similar authority exists for the neighbouring emirate of Abu Dhabi; the Abu Dhabi Pension Fund (ADPF). Employers who have Emirati nationals employed in their workforce are required to register the company and its UAE nationals with the relevant systems.
How To Register?
Company Registration
All employers who have Emirati nationals employed within the company must register the company with the General Pension and Social Security Authority (GPSSA) or the Abu Dhabi Pension Fund (ADPF).. As Emirati nationals are not entitled to any end of service gratuity; they instead receive a monthly pension.
Employers must register their company with GPSSA by providing the following documents and submitting the application online:
• Company registration form
• Valid trade license
• Establishment card
• A copy of the owner/partner’s Emirates ID
• Power of Attorney showing authorized signatory, attested by a public notary in UAE
• Memorandum of Association of the company along with any amendments
Employee Registration
Once the company has been registered with GPSSA, employers are required to register their Emirati employees. As per the Federal Law by Decree No. 57 of 2023 Concerning Pension and Social Security, all employers must register their Emirati employees with GPSSA no later than 30 days from the start of their employment.
Additional employer obligations also include informing GPSSA of all insured Emirati nationals whose service period has ended within a 15-day timeframe. Failure to comply with these requirements will result in a penalty of AED 200 per day for each employee.
How can Sovereign PPG assist with Emiratisation?
Sovereign PPG offers comprehensive assistance with pension registrations in Dubai and Abu Dhabi, which ensures timely and accurate pension contributions for your Emirati workforce.
We also provide detailed guidance on meeting Emiratisation targets, setting up monitoring systems that ensure timely reporting to MoHRE, support with labour contracts, employee payroll services that align with Wage Protection System (WPS) requirements ensures compliance for all aspects of employment which helps your company stay compliant and avoid penalties.
