A UAE Cabinet resolution on modifying the mechanism for achieving Emiratisation targets at private sector companies with 50 employees or more came into force. What is highlighted in this resolution? pic.twitter.com/GxDwcdoSIi
The overall mechanism for achieving the targeted Emiratisation rates has not changed; it became semi-annual instead of annual. Companies with 50 employees of more are required to achieve an increase of 1% of skills jobs every 6 months and reach a growth of 2% by the end of the year.Â
the annual 2% Emiratisation Growth for skilled jobs in 2022 for private sector companies and the 10% goal for 2026 have no been changed in this resolution.Â
The resolution plays a significant role in enhancing the workforce planning without overlapping with the Emiratisation targets, as there will be no new or additional commitments on companies
Financial contributions on non-compliant companies will start to be applied in July 2023 as well as the remaining contributions from 2022.
UAE firms were instructed to ensure a minimum of 2% employees were UAE Nationals by the end of 2022.
However this figure must increase by 2% annually until it reaches 10% in 2026.
While annual targets remain the same, firms must achieve a mid-year target of a 1% increase of every six months.
Currently, firms that fail to meet the targets will be fined at a rate of AED6,000 a month or AED72,000 a year. The fine will be paid in a single instalment.
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