Dec 30, 2022 1 min read

UAE to increase Emiratisation in private sector

Article Navigation

The Minister of Human Resources & Emiratisation implemented the provisions of cabinet resolution No. (19/5m) of 2022 dated 6th June 2022 of increasing the Emiratisation rate in private sector establishments, and contributions imposed on non-compliant establishments.

Establishments registered with the Ministry employing more than 50 workers, shall increase their current Emiratisation rate from high-skilled jobs by 2 percent annually gradually raising the said rate to 10 percent by 2026. Please refer to the table below for the calculation of UAE nationals as compared to skilled workers:

Number of skilled Workers in Establishments Employing more than 50 workersMinimum Employment Rate of UAE Nationals
0 to 50 skilled workers1 citizen
51 to 100 skilled workers2 citizens
101 to 150 skilled workers3 citizens
More than 151 skilled workers1 citizen for every 50 skilled worker or part thereof

The Non-compliant establishments shall pay Dh6,000 on monthly basis starting from January 2023 for every citizen who has not been employed as per the above resolution. The amount of the monthly contribution shall increase progressively by Dh 1,000 each year. The establishment shall be considered non-compliant if the percentage is not maintained till the following year.
The establishment will be given 2 months from its date of decline to re-achieve the percentage of Emirati employees. The total amount of the contribution for the year in which the required Emiratisation percentage was not achieved shall be paid annually and in one payment.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

Mercans Recommend

Download PDF

UAE to increase Emiratisation rate in private sector to 10% by 2026 and contributions imposed on non-compliant establishment
Size

871.58 KB

Article Navigation

Most viewed posts

View all posts

Mercans Adds Thought Leader Pete Tilakos to its Board

Pete is a renowned global payroll product strategy leader, HR industry analyst, advisor, and thought leader.

Feb 8, 2023 2 min read

Dubai Multi Commodities Centre (DMCC) Mandates Wages Protection Sys...

This will enable DMCC member companies to pay employees’ wages via banks, exchange houses, and financial institutions approved by the UAE Central Bank.

Feb 8, 2023 1 min read

Norway Announced Income Tax Rate 2023 and Introduced a New Social Tax

A new 5% Social Tax has been introduced for yearly income exceeding 750,000 NOK. The tax will only kick in once the employee's earnings surpass this limit.

Feb 7, 2023 1 min read

Lebanon Announced Tax Rate and Exemption Changes for 2023

In addition, the Lebanese government has announced an official LBP to USD exchange rates to be used for payroll calculation purposes.

Feb 7, 2023 1 min read

Qatar changes Social Security Contribution Rates for GCC Nationals

The General Retirement and Social Insurance Authority (GRSIA) of Qatar has announced changes in the Social Security and Pension Law with updated contribution rates applicable to private sector employees in Qatar, effective from 3 January 2023. The up

Feb 1, 2023 1 min read

Mercans’ HR Blizz is now an IRAS-Certified Payroll Software

Accreditation of HR Blizz by IRAS in Singapore allows businesses to submit their GST and Taxes electronically accurately.

Jan 26, 2023 3 min read