Emiratisation Compliance Part 2: Understanding the Calculation

In part two of this blog series on Emiratisation, Immigration Manager Shoaib Khaleeli follows his recent summary of the UAE's new regulations with an outline of the specifics of the Emiratisation calculation and how employers can use it to ensure compliance.

Understanding Skilled Employees

Emiratisation Rate    =         

Total Number of Skilled Nationals in the Establishment
Total Number of Skilled Employees 

In addition to understanding Emiratisation requirements, it is also important to learn about the calculation used, as each element has an impact on the overall score. In order to understand the denominator of the formula above, having a clear definition of what the MOHRE considers a “skilled worker” is necessary.

The MOHRE classifies employment into nine professional levels according to the International Standard Classification of Occupations (ISCO), issued by the International Labour Organization.  For simplicity, the MOHRE job title framework is separated into two sections: 

Furthermore, a worker is classified as skilled employee if they fulfill the following conditions:

• The worker must be at a professional level (one amongst first to fifth level mentioned above);
• The worker has obtained a certificate higher than the secondary certificate or an equivalent certificate;
• The certificate must be attested by the competent authorities; and
• The monthly salary (excluding commission) of the worker must not be less than AED 4,000.

Which UAE Nationals are included in your Emiratisation Rate? 

Examining the numerator in the equation, “Total Number of Skilled Emirati Nationals in the Establishment,” is also important.

For the UAE nationals associated with the entity to count towards the Emiratisation rate, companies need to ensure that the UAE nationals are registered as skilled workers as defined above, and also follow the below criteria:

• The UAE nationals must possess a valid work permit under that company;
• The UAE nationals' wages shall be paid through the Wages Protection System or any other approved wage system;

• The UAE nationals must be registered in the approved pension funds in the country; and
• There should be a contractual relationship between the UAE nationals and the company, adhering to Labour Law, executive regulations and cabinet decisions.

The above requirements of the law, when translated into practise, would mean that the UAE nationals would have to complete all the onboarding steps, including pension registration, to be counted in a company’s Emiratisation ratio.

This could mean a potential time gap of weeks or months associated with the effective hiring of UAE nationals, from the time of hire to when they are effectively reflected on the authorities’ systems. As the timelines and processes can vary from case to case, ensuring the efficient and proactive management of the entire process is paramount.

Need to know more?

Please look out for part three of this blog series next week, which will delve deeper into the impacts of Emiratisation-related non-compliance.

For further information and advice on this topic, please contact Immigration Manager Shoaib Khaleeli at [email protected]. This blog was published on 11 January 2023, and due to the circumstances, there are frequent changes.

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