United Arab Emirates: Salary Subsidies Increased for Emirati Nationals and Penalties Announced for Violation of Emiratization Programs
December 5, 2022
The UAE government increased the monthly salary subsidies for Emirati nationals working in the private sector to a maximum of AED 7,000, up from the previous amount of AED 5,000, in an effort to integrate Emirati nationals into the labor market. The exact amount of support depends on the educational level of the employee and applies to those with a monthly salary of not more than AED 30,000. Further, Emirati nationals with children will now receive a monthly allowance of AED 600 per child (for a maximum of four children), provided that their monthly salary does not exceed AED 50,000. Additionally, the government is now imposing on companies a fine ranging from AED 20,000 to AED 100,000 per worker for false Emiratization or if the employer has filed invalid documents or information to receive salary support from the government or to evade or circumvent the Emiratization laws. Moreover, the Ministry of Human Resources and Emiratization (MOHRE) will issue a fine of AED 20,000 if a company does not take any action when their Emirati employee fails to report to work despite being issued work authorization and after the employer has received salary support from the government, or if the employee does not report to work on a regular basis (as per their contract) or has abandoned work without the employer officially reporting this fact. In all cases, salary support will be suspended, and the employer will be required to return the subsidies they received. They may also receive more than one sanction for multiple violations.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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