Emiratisation Penalty upto AED 72,000/- Will Take Effect from 1 Jan 2023

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Starting from 1 January 2023, private sector companies with 50 employees or more that have not raised Emiratisation targets by 2% of skilled jobs in 2022, will be fined according to the Ministry of Human Resources and Emiratisation (MoHRE).

The fines are AED 6,000/- per month, a total of AED 72,000/- annually, for each Emirati who has not been employed as per the requisite percentage to be achieved by the end of 2022.

The value of the monthly penalties increases progressively at a rate of AED 1,000/- annually until 2026, by which companies are required to achieve up to 10% growth rate in their Emiratisation targets.

The Ministry noted that the legislation governing Emiratisation will contribute to strengthening the diversification of the labour market and will consolidate the UAE’s position as an incubator of national and international talents and an ideal destination to work, live and invest.