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UAE companies must register Emirati employees on pension system or face fines

In a new statement, MoHRE clarified that it is the responsibility of the private sector companies to register Emirati employees in the pension and social security systems

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According to the Ministry of Human Resources and Emiratisation (MoHRE), the registration of Emirati employees working in the private sector in the UAE’s pension and social security systems is a prerequisite to qualify for support from the Nafis programme.

MoHRE stated in a statement on Thursday that private sector firms have a responsibility to register Emirati employees in the country’s pension and social security systems within one month of work permit issuance. Non-compliance may result in penalties and fines in line with relevant laws and regulations.

The ministry added, “The UAE government launched the Nafis programme as a step to enhance the competitiveness of national cadres to work in private sector companies. One of the most important goals of Nafis is to provide Emiratis with the necessary expertise and skills to join jobs and create professional and academic paths that would guarantee promising opportunities for them in the future.”

Emirati employees’ pension and social security systems

MoHRE also highlighted that it is ‘mandatory’ for companies to register their Emirati employees in the pension and social security systems, as this will ensure that employees receive Nafis support, and the rights of both parties are guaranteed.

The ministry stated that although it is the employer’s responsibility to register their Emirati employees in the pension and social security systems, it is also the employee’s responsibility to ensure that they are registered and that contributions are paid based on their real wages.

“Any breach or manipulation in the payment of contributions would decrease the value of the employee’s insurance benefits upon retirement, and this also makes the employers liable to penal action.”

In addition, if the work permit of an Emirati employee is cancelled, the employer must liaise with the concerned pension and social security authority to discuss end-of-service benefits and service merging.

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