Enhancing UAE National Involvement in the Workforce: The Salary Support Plan

In recent times, a significant decision was announced and subsequently implemented to expand the “Salary Support Plan.” This plan, operating under the UAE National Salary Support Scheme, aims to promote the integration and active participation of UAE nationals within various sectors, including banking and private industries, by offering additional benefits such as bonuses, allowances, and incentives. The UAE government is committed to increasing the role of UAE nationals in private, banking, and other corporate sectors.

As part of this initiative, a new mandate was introduced, requiring companies with more than 50 employees to employ UAE nationals. Failure to comply with this requirement results in financial penalties. The government’s goal is to ensure that UAE nationals account for at least 10% of the workforce in the private sector by 2026. This directive applies to all Emiratis throughout the UAE.

The salary support is structured as follows:

For individuals with a bachelor’s degree, a monthly top-up of AED 7,000 is provided, while those holding diplomas receive AED 6,000. These top-ups are applicable as long as the employee’s basic monthly salary is less than AED 30,000.

Married Emiratis are eligible to receive an additional AED 800 per child, up to a maximum of AED 3,200 per family.

The breakdown of top-up amounts is as follows:

For individuals earning less than AED 20,000:

University degree holders: AED 7,000 top-up

Diploma holders: AED 6,000 top-up

Secondary diploma holders: AED 5,000 top-up

For individuals earning between AED 20,000 and AED 30,000:

University degree holders: AED 3,500 top-up

Diploma holders: AED 3,000 top-up

Secondary diploma holders: AED 2,500 top-up

The top-up amount is calculated as the difference between the employee’s current monthly salary and the designated salary, up to a maximum of AED 20,000 or AED 30,000. It’s important to note that the minimum top-up amount is set at AED 1,000.

To illustrate, if a university degree holder’s salary is AED 16,000, they would receive a top-up of AED 4,000.

Beginning in January 2023, companies that fail to hire Emirati employees, as mandated since 2022, will be subject to monthly fines of AED 6,000. The government initiated these fines in 2023 for violations occurring in 2022. The requirement is to employ 2% Emirati employees for companies with more than 50 employees. For instance, a company with 50 employees should hire one Emirati employee, while a company with 100 employees should employ two Emirati workers. These employees must be skilled workers, and fines are not subject to reduction or installment payments.

For a detailed understanding of this program and its implications, it is advisable to schedule a legal consultation with experienced legal consultants in Dubai. These advocates and legal consultants can provide comprehensive information and guidance on the intricacies of this new regulation. Lawyers in Dubai.