Within 30 days of hiring a new employee, UAE businesses are required to register them and set up an account on the Ma’ashi digital platform.

To ensure accurate calculations for insurance and pension benefits, the General Pension and Social Security Authority (GPSSA) shared an important update today. Emirati employees in the federal, government, and private sectors must register with GPSSA within their first month of employment. This also applies to those hired through government programs like NAFIS.

Employers in the federal, government, and private sectors are required by Federal Law No. (7) of 1999 and Federal Law No. 57 of 2023 concerning pension and social security and its amendments to register Emirati workers with the GPSSA within 30 days of their employment, provided that they fulfill the registration requirements.

The person must be at least 18 years old at the time of recruitment and no older than 60 in order to be successfully registered. When hired, he or she must show that they are medically fit to work by presenting a medical clearance certificate from a government hospital in the United Arab Emirates that is valid for no more than six months. Anyone who acquires Emirati nationality at any point is subject to these rules.

Registration of GCC employees

According to Cabinet Resolution No. 18 of 2007, which governs the insurance protection extension system for GCC nationals operating outside of their home country.

It is also required that GCC citizens working in the UAE be registered. The GPSSA is designated as the implementing organization for the GCC’s extended protection system in the UAE by the decision.

Why the Mandate Matters

To increase its citizens’ engagement in the workforce, the UAE has been aggressively pushing emiratization as a national goal. The government wants to create a competitive and sustainable labor market where Emiratis are vital to the nation’s economic growth.

This requirement holds businesses responsible for their commitments to support local talent while guaranteeing Emirati workers the benefits, employment stability, and legal protections they need.

Key Benefits of the Mandate Include:

• Enhanced Job Security: Emirati workers are guaranteed access to employment rights and registration.
• Social Security and Pension: By ensuring proper registration, Emiratis can secure their future by being covered by pension plans.
• Corporate Accountability: Businesses are now subject to stricter emiratization regulations, which support the national workforce goal.

Implications for Employers

Employers are required to comply with the new regulation immediately. Here’s what businesses must do:

• Timely Registration: New Emirati employees must be registered by their employers within 30 days of their start date. This includes signing up for pension plans and submitting the necessary paperwork to the General Pension and Social Security Authority (GPSSA) and MoHRE.
• Compliance with Emiratisation Targets: Companies, especially those with 50 or more employees, are required to meet government-imposed Emiratisation requirements.
• Avoiding Penalties: Financial penalties, legal consequences, and other limitations on corporate operations could arise from non-compliance.
• Adapting Recruitment Strategies: Employers have to actively look out for and retain Emirati talent to include Emiratization in their hiring procedures.

Penalties for Non-Compliance

There may be serious repercussions for businesses if Emirati staff are not registered within the allotted period. Among the penalties are:

• Monetary Fines: Businesses that violate the 30-day registration rule risk fines of between AED 20,000 and AED 50,000.
• Legal Action: Legal action against the business could follow persistent non-compliance.
• Restrictions on Operations: Companies that are found to be in breach may not be allowed to apply for other government services, such as work permits.
• Loss of Government Incentives: Businesses may no longer be eligible for financial incentives and advantages under the NAFIS program if they do not comply with the Emiratization rules.

The Role of NAFIS in Supporting Emiratization

Emirati employment in the private sector is made possible in large part by the NAFIS initiative. NAFIS, which was introduced as a component of the UAE’s economic reforms, offers a range of incentives and support systems, such as:

• Salary Subsidies: For Emiratis employed in the private sector, the government provides salary support in an effort to increase employment appeal.
• Training and Development: Specialized training is provided to Emirati workers in order to improve their abilities and future employment opportunities.
• Job Matching Services: NAFIS connects qualified Emirati job seekers with private sector employers who have openings.
• Child Allowances: Emirati workers receive extra financial assistance to promote their involvement in the workforce.

How Emirati Employees Benefit

The new requirement guarantees certain benefits for Emirati workers, such as:

• Legal Job Protection: Their benefits and job rights are protected by formal registration.
• Retirement Security: Long-term financial stability is ensured through pension plan contributions.
• Career Growth Opportunities: Professional development is promoted by assisting Emirati talent in integrating into the commercial sector.
• Enhanced Workplace Inclusion: By encouraging diversity and inclusion, the rule increases the number of Emiratis working in a variety of businesses.

Conclusion

The UAE government’s strong commitment to workforce nationalization and economic sustainability is demonstrated by its decision to require new Emirati employees to register within 30 days.

The government is safeguarding Emirati workers and holding employers responsible for their employment practices by requiring prompt registration.

Following this order is not only required by law for companies doing business in the United Arab Emirates, but it also presents a chance to support the nation’s goal of having a competitive and diverse workforce.

Businesses can improve their standing in the UAE’s changing business environment. They can also gain access to a trained workforce and government incentives by embracing Emiratization and incorporating local talent.

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