Dec 30, 2022 1 min read

UAE to increase Emiratisation in private sector

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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

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

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