Basic Salary, Allowances or Total Pay: Which Salary Figure Matters for Nafis?

Basic Salary, Allowances or Total Pay Which Salary Figure Matters for Nafis

Your company is preparing an offer for an Emirati candidate. The proposed monthly package is AED 12,000, divided into: The candidate asks whether they will qualify for Nafis salary support. Your HR manager looks at the total package and assumes that AED 12,000 is the relevant salary. Your payroll team, however, uses a different figure when calculating pension contributions. So which amount actually matters? Is Nafis eligibility based on basic salary, allowances, total contractual salary or the amount deposited into the employee’s bank account? For UAE employers, understanding these differences is important when preparing offers, registering employees and explaining government support. The September 2026 Nafis updates have made accurate salary communication particularly relevant, especially for businesses recruiting UAE nationals under the revised salary-support framework. Why Salary Definitions Matter for Nafis Employers commonly use several different salary figures. Although these figures may appear in the same employment file, they serve different purposes. For example, a company’s employment offer may specify a basic salary and fixed monthly allowances. The payroll system may calculate deductions based on the employee’s applicable pension contribution rules. Meanwhile, Nafis assesses salary-support eligibility according to its programme requirements and the salary information recognised for that purpose. These figures should not be treated as interchangeable. A misunderstanding can lead to: The solution is to understand what each salary figure represents. What Is Basic Salary in the UAE? Basic salary is the amount agreed between the employer and employee before adding contractual allowances and other benefits. It is normally identified separately in the employment contract. For example: Salary component Monthly amount Basic salary AED 7,000 Housing allowance AED 3,000 Transport allowance AED 2,000 Total fixed monthly salary AED 12,000 In this example, the basic salary is AED 7,000. The total fixed monthly salary is AED 12,000. These are not the same figure. Basic salary has particular importance under UAE employment legislation, including certain employment-related calculations. However, employers should not assume that every Nafis benefit or pension calculation is determined solely by the basic salary shown in the contract. What Are Salary Allowances? Allowances are amounts paid in addition to basic salary. Common examples include: Some employers provide allowances as regular cash payments, while others provide certain benefits in kind. The distinction matters because not every benefit is necessarily treated as salary for every regulatory purpose. For example, a fixed monthly housing allowance may be recorded differently from an occasional reimbursement of actual business travel expenses. Employers should maintain clear records showing how each payment is classified. What Is Total Monthly Salary? Total monthly salary generally refers to the combination of basic salary and the applicable salary allowances included in the employment package. Using the earlier example: AED 7,000 basic salary + AED 3,000 housing allowance + AED 2,000 transport allowance = AED 12,000 total fixed monthly salary. However, employers should distinguish this amount from other forms of compensation. For example: These may not be treated in the same way as fixed contractual remuneration. For Nafis purposes, the decisive question is which salary components are recognised under the current programme rules and reflected in the relevant official records. Which Salary Figure Does Nafis Use? Nafis salary-support eligibility is determined according to the programme’s applicable salary definitions, thresholds and verification requirements. Under the September 2026 revised framework, the general salary eligibility range for new beneficiaries is AED 6,000 to AED 20,000 per month, subject to other conditions. However, employers should not interpret this as permission to use whichever salary figure is most favourable. The relevant amount must be determined according to Nafis rules and the salary information recognised through the applicable employment and pension records. What Employers Should Verify Before advising a candidate about eligibility, confirm: The correct Nafis salary figure should be verified through official programme guidance rather than inferred from an internal payroll spreadsheet. Does Nafis Use the Same Salary as GPSSA? Not necessarily. The salary figure used for pension contributions is governed by the applicable pension legislation and scheme. For example, employees covered by Federal Decree-Law No. 57 of 2023 are subject to specific rules governing the contribution-account salary. Other UAE nationals may be covered by earlier pension legislation or a different pension authority. The contribution-account salary may be determined using statutory definitions, component rules and limits. Consequently, employers should not assume that: Each figure must be assessed according to the rules governing its purpose. Example: An Emirati Candidate With a Salary Package of AED 12,000 Consider a hypothetical job offer. Component Amount Basic salary AED 7,000 Housing allowance AED 3,000 Transport allowance AED 2,000 Total fixed monthly salary AED 12,000 The employer should explain that AED 12,000 is the contractual fixed monthly package. However, before telling the candidate that AED 12,000 is the recognised salary for Nafis eligibility, HR should verify the applicable programme definition and official records. Likewise, payroll should calculate pension contributions according to the employee’s actual pension scheme. This avoids making unsupported assumptions based on the salary breakdown alone. What If the Employee’s Salary Is Exactly AED 20,000? The revised Nafis salary-support framework includes an upper salary eligibility threshold of AED 20,000 for relevant new beneficiaries. However, employers should confirm how the programme determines the recognised salary and how the threshold applies to the particular benefit. For example, consider an employee whose package includes fixed allowances, variable incentives and reimbursements. The employer should not assume that every payment is included or excluded in the same way. If the employee’s salary is close to the threshold, accurate classification becomes especially important. The candidate should verify eligibility through Nafis rather than relying solely on an employer’s estimate. What If Basic Salary Is Below AED 6,000 but Total Pay Is Higher? This situation can create confusion. Imagine an offer containing: The employer may believe that the total package satisfies the relevant salary threshold. However, whether the candidate qualifies depends on the salary definition applied by Nafis and the other programme requirements. Employers should not conclude that the candidate is automatically eligible or ineligible merely by looking at … Read more

MOHRE Held 64 Recruitment Days in Six Months. Could Your Company Use This Hiring Channel?

MOHRE Held 64 Recruitment Days in Six Months. Could Your Company Use This Hiring Channel

Your company needs to hire Emirati professionals, but the usual recruitment process is taking longer than expected. You have advertised vacancies, reviewed CVs and contacted potential candidates. Yet finding suitable UAE nationals with the right skills, experience and availability remains a challenge. What if your HR team could meet several Emirati job seekers directly, conduct interviews and identify potential hires through a government-supported recruitment event? This is one of the opportunities provided by the Ministry of Human Resources and Emiratisation (MoHRE) through its open recruitment days. On 21 July 2026, MoHRE announced that it had organised 64 open recruitment days during the first half of 2026, bringing together 226 private-sector companies across the UAE. The initiative connects Emirati job seekers with employers through direct recruitment activities, supporting genuine employment opportunities and Emiratisation workforce objectives. For businesses struggling to fill skilled positions, these events may provide another useful recruitment channel. But how do they work, and how can your company participate? What Are MoHRE Open Recruitment Days? MoHRE open recruitment days are organised recruitment events that bring UAE national job seekers and private-sector employers together. The events are conducted in cooperation with the Ministry’s strategic partners. Rather than relying exclusively on online applications, participating companies can interact directly with candidates interested in private-sector employment. These events provide opportunities for: MoHRE also oversees recruitment activities and follows up on interview outcomes. The objective is to help create genuine employment opportunities and improve connections between employers and UAE national talent. What Did MoHRE Announce in July 2026? According to the Emirates News Agency (WAM), MoHRE organised 64 open recruitment days across the UAE during the first six months of 2026. The events involved 226 private-sector companies working with the Ministry and its strategic partners. Farida Al Ali, Assistant Undersecretary of National Talents at MoHRE, highlighted the importance of these events in connecting UAE nationals with employers. The Ministry also explained that it monitors participating companies’ recruitment activities and follows up on interview outcomes. This approach is intended to encourage serious recruitment efforts rather than treating participation as a purely promotional exercise. MoHRE confirmed that it would continue organising open recruitment days with government and private-sector partners. Source: Emirates News Agency — MoHRE Organises 64 Open Recruitment Days in Six Months. Why Should UAE Employers Consider This Recruitment Channel? Traditional recruitment methods remain important, but they are not always sufficient for every vacancy. Employers may face challenges involving candidate availability, lengthy screening processes and competition for experienced professionals. Open recruitment days offer a different approach. 1. Direct Access to Emirati Job Seekers Participating employers can meet candidates who are actively exploring private-sector employment. This creates an opportunity for direct conversations about qualifications, experience and career expectations. 2. Faster Initial Screening Instead of arranging every initial discussion separately, HR teams may be able to meet multiple candidates during an organised recruitment event. This can help employers identify suitable applicants for further assessment. 3. Opportunities for Immediate Interviews Recruitment days can provide direct interview opportunities. Where an employer and candidate are ready to proceed, discussions may advance quickly. However, employers should still complete appropriate screening and employment formalities. 4. Access to Different Specialisations The events are designed to connect companies with UAE national candidates across a range of professional backgrounds. This may be useful for employers recruiting into different departments. 5. Support for Emiratisation Workforce Planning For businesses required to meet Emiratisation targets, recruitment days can form part of a broader hiring strategy. They provide another way to identify candidates for genuine positions. Can Any UAE Company Participate? MoHRE has stated that companies wishing to participate in future open recruitment days can register through the Nafis platform. However, employers should not assume that registration guarantees a place at every event. Participation may depend on the event arrangements, available vacancies, eligibility requirements and coordination with the relevant organisers. Businesses interested in participating should check the official Nafis platform for current opportunities and instructions. Official platform: https://nafis.gov.ae/ How Can Employers Register for MoHRE Recruitment Days? The Ministry’s July 2026 announcement directs interested companies to the Nafis platform. A practical approach is to follow these steps. Step 1: Access the Nafis Platform Visit the official Nafis website and access the relevant employer services. Step 2: Review Available Recruitment Opportunities Check for information about upcoming recruitment days and employer participation. Availability and registration procedures may differ between events. Step 3: Prepare Genuine Vacancies Before expressing interest, identify positions that your business genuinely needs to fill. Each vacancy should have a clear job description and appropriate employment terms. Step 4: Provide the Requested Employer Information Follow the instructions provided through the relevant official channel. Step 5: Confirm Participation Requirements Check event details, required documentation, interview arrangements and any other instructions. Step 6: Prepare Your Recruitment Team Ensure the representatives attending the event understand the vacancies and have authority to conduct meaningful recruitment discussions. The exact registration process should always be confirmed through Nafis or MoHRE. What Should Companies Prepare Before Attending? Participating in a recruitment day should involve more than sending an HR representative with a list of vacancies. Employers should prepare carefully to make the most of the opportunity. Finalise Job Descriptions Each position should clearly explain: Approve Salary Budgets Hiring managers should know the approved compensation range before speaking with candidates. This helps avoid delays after identifying a suitable applicant. Identify Interviewers Where possible, include someone who understands the technical requirements of the position. For example, a finance manager may be better positioned to assess a finance candidate’s technical capabilities than a recruiter working alone. Prepare Structured Interview Questions Use consistent questions that evaluate the skills and responsibilities relevant to the position. Establish a Follow-Up Process Decide who will contact candidates, schedule further assessments and coordinate employment offers. Without a clear follow-up process, promising recruitment conversations may not lead to actual hires. Which Positions Could Be Suitable for Recruitment Days? The suitability of a vacancy depends on the candidates attending and the particular event. However, employers may consider … Read more

Making an Offer to an Emirati Candidate? Explain the New Nafis Salary Support Clearly

Making an Offer to an Emirati Candidate Explain the New Nafis Salary Support Clearly

You have found a suitable Emirati candidate, completed the interviews and agreed on the responsibilities of the position. Now comes an important stage: discussing the salary package. The candidate asks: “How much will I receive from the company, and how much additional support could I receive through Nafis?” For UAE employers, this question requires a clear and accurate answer, particularly following the Nafis programme updates announced in September 2026. The revised framework introduces new monthly salary-support amounts for eligible UAE nationals joining the private and banking sectors after 15 August 2026. However, Nafis support should not be confused with the salary an employer agrees to pay under the employment contract. Employers also need to explain that eligibility depends on the programme’s conditions and that any applicable pension deductions may affect the employee’s take-home salary. A well-explained offer can prevent misunderstandings, improve candidate confidence and establish realistic expectations before employment begins. What Changed in Nafis Salary Support in 2026? The September 2026 updates revised the monthly salary-support structure for eligible UAE nationals working in the private and banking sectors. For new beneficiaries joining after 15 August 2026, the revised support amounts depend on educational qualifications and, for certain categories, family circumstances. New Nafis Monthly Salary Support Candidate category Monthly Nafis support University degree holder AED 6,000 Diploma holder AED 5,000 High school graduate AED 4,000 Below high school, married or with children AED 4,000 Below high school, unmarried without children AED 3,000 These amounts are subject to the applicable programme requirements. Under the revised framework, the general salary eligibility range for new beneficiaries is AED 6,000 to AED 20,000 per month. The support is not automatically payable to every Emirati employee whose salary falls within that range. Eligibility also depends on other conditions established by Nafis. Employers should never promise a specific support amount without confirming the candidate’s eligibility. Why Employers Must Separate Salary From Nafis Support The most important distinction during an offer discussion is between the employer’s contractual salary and government-provided financial assistance. Employer Salary This is the remuneration agreed between the company and the employee. It should be clearly stated in the employment offer and contract. The employer is responsible for paying the agreed salary in accordance with applicable UAE employment requirements. Nafis Salary Support Nafis provides financial assistance to eligible UAE nationals working in the private and banking sectors. The support is administered under government programme rules. It is separate from the employer’s contractual wage obligations. Employee Take-Home Pay The amount an employee receives after applicable payroll deductions may differ from the contractual salary. For UAE nationals, pension contributions are an important consideration. Where the employee qualifies for Nafis salary support, that assistance may increase their overall available income, but it should be explained separately. Example: How to Explain an Emirati Salary Offer Consider a hypothetical company offering an Emirati university graduate a monthly salary of AED 10,000. Assume the candidate may qualify for the revised Nafis university graduate support of AED 6,000. The employer should explain the figures separately. Component Illustrative amount Monthly salary paid by employer AED 10,000 Potential Nafis salary support AED 6,000 Combined amount before applicable deductions AED 16,000 This is only an illustrative explanation. The AED 6,000 is conditional on Nafis eligibility and approval. The candidate’s actual take-home income may differ because of pension deductions, other applicable adjustments or programme conditions. The employer should not present AED 16,000 as a guaranteed company salary. A clearer explanation is: “Our company is offering AED 10,000 per month. You may also qualify for Nafis support, subject to the programme’s approval and conditions.” What Employers Should Include in an Emirati Job Offer A professional employment offer should clearly communicate the terms controlled by the employer. These generally include: Any discussion of Nafis support should be clearly distinguished from these contractual terms. Employers should avoid presenting conditional government benefits as guaranteed components of their own remuneration package. How to Discuss Nafis During Salary Negotiations 1. Start With the Employer’s Actual Offer The employer should first explain the salary it is prepared to pay. For example: “Our proposed monthly salary for this position is AED 12,000, subject to the agreed employment terms.” This establishes the contractual remuneration independently of any government assistance. 2. Explain That Nafis Is a Separate Programme The employer can then explain that eligible UAE nationals may receive additional support through Nafis. The candidate should understand that Nafis is administered separately and subject to its own rules. 3. Discuss Eligibility Without Making Guarantees Avoid statements such as: “You will definitely receive AED 6,000 from Nafis.” A more accurate approach is: “Based on the published programme categories, you may be eligible for support. Your entitlement and payment amount must be confirmed through Nafis.” 4. Explain Pension Deductions Candidates should understand that their contractual salary may be subject to applicable pension contributions. The deduction depends on the pension legislation and scheme governing the employee. Employers should not use one universal pension percentage for every UAE national employee. 5. Encourage Official Verification Candidates should be directed to the official Nafis platform for eligibility information. Employers should also confirm any relevant employment-registration requirements. What About Emirati Candidates Already Receiving Nafis Support? Some candidates may already be employed in the private sector and receiving Nafis benefits. Employers should not assume that the candidate’s existing support will continue unchanged after moving to a new employer. The revised programme includes transitional arrangements affecting certain existing beneficiaries. Eligibility may depend on factors such as: A candidate changing jobs should verify how the new employment arrangement may affect their benefits. Does Nafis Support Mean Employers Can Offer Lower Salaries? Nafis support should not be treated as a substitute for the employer’s salary obligations. Employers should determine compensation based on legitimate business considerations, including: The employer remains responsible for paying the contractual salary. Government support should not be used to misrepresent the compensation being offered. For example, a company should not advertise a guaranteed AED 16,000 employer salary when it intends to pay AED … Read more

Nafis Pension Support Changed in September. Has Your Emirati Hiring Budget Caught Up?

Nafis Pension Support Changed in September. Has Your Emirati Hiring Budget Caught Up

Your company is planning to hire more Emirati employees before the end of 2026. HR has shortlisted candidates, management has approved the salary budget, and recruitment is moving forward. But there is one question your finance team should revisit: Does your hiring budget reflect the Nafis pension-support changes introduced in September 2026? The Nafis programme has introduced important changes affecting pension support for UAE nationals working in the private and banking sectors. Under the revised pension programme, Nafis no longer reimburses employers’ pension contributions. Instead, its pension support focuses on the contribution payable on behalf of eligible Emirati employees. This means businesses that previously relied on employer-side Nafis assistance need to review their payroll calculations and hiring budgets. The change is particularly relevant for companies planning additional Emirati recruitment, but it also matters to employers with UAE nationals already on their payroll. What Changed in Nafis Pension Support in September 2026? The September 2026 update changes how pension support is provided under the Nafis programme. Previously, the programme provided support connected to employer pension contributions through a phased mechanism. Under the revised arrangement, employers must meet their legally required pension contribution obligations without relying on the former Nafis employer reimbursement. Nafis support now focuses on eligible contributions payable on behalf of the Emirati employee. September 2026 Pension Support: Before and After Area Previous Nafis arrangement From September 2026 Employer pension support Phased employer-side support was available under the programme Nafis no longer reimburses employer contributions Employer responsibility Employers paid their applicable contribution after relevant programme support Employers must fund their legally required share Employee pension support Support was available under previous programme conditions Nafis continues eligible employee-side contribution support Pension registration Required under applicable pension rules Continues to be required Payroll budgeting Could reflect applicable employer-side Nafis assistance Must exclude discontinued employer-side Nafis reimbursement Important: This change concerns Nafis programme support. It should not be confused with any separate government contribution provided under the applicable pension legislation. Employers should confirm their actual contribution liability with the relevant pension authority. Does This Mean Employers Now Pay the Entire Pension Contribution? Not necessarily. This is where businesses need to distinguish between three different components: The September 2026 Nafis update changes the programme’s employer reimbursement arrangements. It does not mean every employer must automatically pay both the employer and employee portions. Nor should employers assume that a separate statutory government contribution has disappeared. Why the Applicable Pension Law Matters UAE nationals may be covered by different pension arrangements depending on their registration history and the relevant pension authority. For example, Federal Decree-Law No. 57 of 2023 introduced a revised pension contribution structure for individuals falling within its scope. Under that framework, the combined contribution rate is 26% of the applicable contribution-account salary: The legislation also provides for the government to bear 2.5 percentage points of the employer contribution for eligible private-sector Emiratis whose contribution-account salary is below AED 20,000. That statutory arrangement is distinct from the discontinued Nafis employer reimbursement. Other employees may fall under earlier pension legislation or a different pension fund. Employers should calculate pension costs according to the employee’s applicable pension scheme, not a single percentage applied to every Emirati employee. Why the Change Matters for Emirati Hiring Budgets When employers calculate the cost of recruiting an Emirati professional, they often begin with the proposed monthly salary. However, salary is only one part of the employment cost. A complete budget should also consider: If an employer previously accounted for Nafis reimbursement against its pension costs, the removal of that support can increase the net amount it must budget. For companies planning several hires, even a relatively small monthly difference per employee can become meaningful over a full financial year. How to Calculate the Employer’s Pension Cost Consider an illustrative employee whose contribution-account salary is AED 12,000 per month. Assume the employee falls under Federal Decree-Law No. 57 of 2023 and qualifies for the statutory government contribution. The calculation would be: Component Rate Monthly amount Gross statutory employer contribution 15% AED 1,800 Statutory government contribution, where eligible 2.5% AED 300 Employer-funded portion 12.5% AED 1,500 Employee contribution 11% AED 1,320 In this illustration, the employer-funded pension cost is AED 1,500 per month, assuming the statutory government contribution applies. That represents AED 18,000 over 12 months. This example does not include salary, recruitment fees, training or other employment expenses. It also does not calculate any employee-side Nafis benefit. The actual amount must be verified against the employee’s pension registration, contribution-account salary, applicable legislation and any qualifying government support. What About Employees Covered by Other Pension Rules? Employers should not automatically apply the above example to every UAE national employee. The applicable contribution structure may differ based on: HR and payroll teams should confirm these details before finalising the employment budget. Does the September Update Affect Existing Emirati Employees? Yes, employers with existing UAE national employees should review whether they previously benefited from the discontinued Nafis employer reimbursement. The pension-support update is not relevant only to employees hired after September 2026. An employer may already have Emirati employees whose payroll budgets were prepared under the previous programme arrangements. If the company continues using those assumptions, its forecast employment costs may be understated. What Employers Should Review For each existing Emirati employee, confirm: This exercise can help finance teams identify differences between budgeted and actual payroll costs. What Else Changed Under Nafis in September 2026? The pension-support revision forms part of a wider set of Nafis updates. The programme has also introduced changes to salary support and certain family-related benefits. These changes can influence recruitment discussions, although they should not be confused with the employer’s own salary and pension obligations. Revised Salary Support for New Beneficiaries For eligible UAE nationals joining the private and banking sectors after 15 August 2026, the revised monthly salary-support amounts include: Educational qualification or category Monthly support University degree AED 6,000 Diploma AED 5,000 High school AED 4,000 Below high school, married or with children AED 4,000 Below … Read more

Skills Assessments for Emirati Candidates: How to Evaluate Suitability Beyond the CV

Skills Assessments for Emirati Candidates How to Evaluate Suitability Beyond the CV

You have received several applications from Emirati candidates for an open position. One candidate has an impressive degree. Another has worked for a well-known UAE company. A third has less experience but demonstrates strong communication skills, problem-solving ability and a genuine interest in the role. Who should you hire? For many UAE employers, evaluating Emirati candidates involves more than checking qualifications and previous job titles. A CV can tell you where someone studied and worked, but it does not always reveal how effectively they solve problems, communicate with colleagues, learn new systems or handle real workplace responsibilities. This is why skills assessments are becoming an important part of effective Emiratisation recruitment. When designed properly, assessments help employers identify candidates who can succeed in genuine positions while also recognising the potential of professionals who may not have extensive experience. Why CV Screening Alone Is Not Enough A CV is useful for understanding a candidate’s professional background. It may highlight: However, employers should recognise its limitations. A candidate may list advanced Excel skills but struggle to interpret a basic dataset. Another may have limited formal experience but demonstrate excellent analytical thinking during an assessment. A third may communicate confidently during an interview but lack the technical knowledge required for the position. These differences are not always visible on paper. The purpose of a skills assessment is to understand what a candidate can actually do, not simply what their CV says they can do. What Is a Skills Assessment in Recruitment? A skills assessment is a structured method of evaluating a candidate’s capabilities against the requirements of a particular position. It may involve practical exercises, technical questions, work simulations, presentations or scenario-based interviews. For example, an employer recruiting an Emirati marketing executive might ask the candidate to review a sample marketing campaign and recommend improvements. A company recruiting a finance professional might provide a simplified financial report and ask the candidate to identify inconsistencies. A customer service candidate might be asked to respond to a realistic customer complaint. The assessment should reflect genuine responsibilities associated with the role. Why Skills Assessments Matter for Emiratisation Recruitment Emiratisation is not simply about increasing the number of UAE nationals employed by private-sector businesses. For employers, successful recruitment also involves identifying candidates who can contribute to business operations, develop professionally and remain engaged over time. Skills-based evaluation can support these objectives. Better Candidate Selection Assessments help employers compare candidates using relevant evidence rather than relying exclusively on CV presentation or interview impressions. Greater Recognition of Potential Candidates with limited experience may demonstrate strong foundational capabilities and learning potential. Improved Role Matching Employers can identify whether a candidate’s strengths align with the responsibilities of the position. More Targeted Training Assessment results can highlight development areas that can be addressed through onboarding and training. More Consistent Recruitment Decisions A structured process helps hiring managers apply the same evaluation criteria to candidates competing for the same position. Seven Skills Employers Should Assess in Emirati Candidates 1. Role-Specific Technical Skills Technical assessments should reflect the actual requirements of the vacancy. For example: Position Relevant assessment Finance executive Financial reporting or spreadsheet exercise HR officer Recruitment or employee-relations scenario Marketing specialist Campaign analysis or content-planning task Data analyst Dataset interpretation and reporting IT professional Technical troubleshooting exercise Sales executive Customer consultation or sales scenario Project coordinator Scheduling and prioritisation exercise Employers should avoid testing advanced capabilities that are unrelated to the position. 2. Communication Skills Communication is important across many industries. Employers may assess a candidate’s ability to: For roles requiring Arabic and English, the assessment should reflect the genuine language requirements of the position. 3. Problem-Solving Ability Problem-solving assessments help employers understand how candidates approach unfamiliar situations. A useful exercise might present a realistic business challenge. For example: A client has complained about a delayed service, and the employee must recommend an appropriate response. The interviewer can evaluate whether the candidate: The quality of the reasoning may be as important as the final answer. 4. Digital Literacy Digital capability is increasingly relevant across UAE workplaces. Depending on the position, employers may assess familiarity with: The objective should be to evaluate practical competence rather than familiarity with every available technology. 5. Adaptability and Learning Ability Some candidates may not possess every technical skill required on their first day. However, they may demonstrate the ability to learn quickly. Employers can evaluate this by providing a short explanation of an unfamiliar process and asking the candidate to apply it. This helps identify candidates who can develop through training. 6. Teamwork and Collaboration Most positions require employees to work with colleagues, managers or customers. Behavioural interview questions can help assess collaboration. For example: “Tell us about a situation where you worked with others to complete a challenging project.” The interviewer should look for evidence of: 7. Initiative and Professional Judgement Employers may also assess how candidates approach responsibility. Useful indicators include: These qualities can be particularly important when identifying future leadership potential. How to Design a Fair Skills Assessment Start With the Job Description Before creating an assessment, identify the responsibilities the employee will actually perform. Ask: The assessment should focus on these requirements. Separate Essential Skills From Trainable Skills Not every capability needs to be present before employment begins. For example, a candidate may need strong analytical thinking but can learn the company’s reporting software after joining. Employers should distinguish between: Essential skills: Capabilities required to perform the role safely and effectively. Trainable skills: Capabilities that can reasonably be developed through onboarding, supervision and training. This distinction can help prevent unnecessarily restrictive recruitment criteria. Use the Same Criteria for Comparable Candidates Candidates applying for the same position should generally be assessed against consistent, job-related standards. This improves fairness and makes results easier to compare. Keep Assessments Relevant and Proportionate A junior position should not require an assessment designed for a senior manager. Likewise, a short screening exercise should not turn into several hours of unpaid productive work. Tasks should be reasonable in length … Read more

Emiratisation Quota Calculation in 2026: Are You Counting the Right Employees?

Emiratisation Quota Calculation in 2026 Are You Counting the Right Employees

Your company has 100 employees, including several UAE nationals. Your HR spreadsheet shows that you are meeting your Emiratisation requirements. But is that what the Ministry of Human Resources and Emiratisation (MoHRE) sees? One of the most common sources of confusion in Emiratisation workforce planning is the difference between total employees, skilled employees and Emirati employees who meet the conditions for recognition. A company may employ 100 people, but not all 100 necessarily belong in the skilled-workforce calculation. Likewise, having UAE nationals on the payroll does not automatically mean every employee is correctly reflected in the company’s Emiratisation position. In 2026, this distinction matters more than ever. Under MoHRE’s published framework, applicable private-sector establishments with 50 or more employees must progressively increase Emiratisation in skilled jobs, reaching a cumulative target of 10% by the end of 2026. The important question is not simply how many people your company employs. It is whether you are counting the right employees under the correct rules. What Is the Emiratisation Quota in the UAE for 2026? Emiratisation is a UAE government initiative designed to increase the participation of UAE nationals in the private-sector workforce. For establishments with 50 or more employees that fall within the applicable MoHRE framework, the target increases progressively. The published requirements provide for: Employers must also consider the applicable mid-year milestone. The target should not be treated as a one-time recruitment exercise completed only in December. Official reference: MoHRE — Private-Sector Awareness Guide. Is Emiratisation Calculated on Total Employees or Skilled Employees? This is one of the most important distinctions employers need to understand. Under the percentage-based framework for establishments with 50 or more employees, Emiratisation targets relate to skilled jobs. However, the threshold determining whether an establishment falls within the 50-plus-employee framework is based on its workforce size. These are two different considerations. Total Employees Total headcount helps determine whether the establishment falls within the relevant workforce-size category. Skilled Employees The skilled workforce is relevant to calculating the percentage-based Emiratisation requirement. MoHRE’s published guidance identifies skilled workers by occupational skill levels 1 to 5. UAE National Employees Eligible Emirati employees contribute to the establishment’s Emiratisation position when they satisfy the applicable employment and registration requirements. Employers should not use a simple total-headcount percentage without first confirming the correct workforce classifications and official calculation. Which Employees Are Considered Skilled Workers? MoHRE’s occupational framework uses skill classifications to distinguish different categories of employment. Skilled workers generally fall within occupational skill levels 1 to 5. These classifications can include roles involving: However, employers should not determine the official skill level based solely on a job title. For example, calling an employee a manager does not automatically establish how the position is classified in Ministry records. HR should verify the actual occupational classification associated with the relevant work permit. How to Calculate Your Emiratisation Position in 2026 A useful starting point is to understand the relationship between eligible Emirati employees and the skilled workforce. Illustrative workforce percentage: Emiratisation percentage = Eligible Emirati employees ÷ Relevant skilled workforce × 100 This provides a basic planning indicator. However, MoHRE’s target-setting framework also uses incremental requirements and specific rounding rules. Therefore, a simple percentage calculation should not be treated as a substitute for the official establishment target. Example: A Company With 100 Employees Consider a hypothetical UAE business with: The company should not simply divide five by 100 and conclude that its Emiratisation position is 5%. Its skilled-workforce composition is relevant to the assessment. For planning purposes, the company can examine the relationship between its eligible UAE national employees and skilled workforce. However, the exact number of additional Emirati employees required must be verified against MoHRE’s official target and applicable incremental calculation. Why Rounding Rules Matter MoHRE’s published FAQ explains that the annual 2% increase involves at least one additional UAE national for every 50 skilled workers or part thereof. For example, under that annual-increment rule, an establishment with 51 skilled workers may need two additional UAE national hires for the relevant year’s increase. This is why employers should not rely exclusively on conventional percentage rounding. The official calculation may differ from a simple spreadsheet formula. Emiratisation Targets for Companies With 20–49 Employees Not every establishment follows the 10% skilled-job framework. Certain private-sector establishments with 20 to 49 employees operating in selected economic activities are subject to separate Emiratisation requirements. Under the published framework, affected establishments were required to: The corresponding compliance assessments and financial contributions can continue to affect employers in 2026. This is not the same as applying a 10% skilled-workforce calculation. Businesses should confirm whether their economic activity and establishment size place them within this separate framework. Official reference: MoHRE — Ministerial Resolution No. 455 of 2023. Which Emirati Employees Count Towards the Target? A UAE national appearing on the company’s payroll does not automatically establish that the employee has been recognised for Emiratisation purposes. MoHRE’s published guidance identifies several relevant conditions. Valid Work Permit The employee must hold a valid work permit registered through the applicable Ministry system. Compliant Employment Contract The employment relationship must satisfy the relevant contractual and labour-law requirements. Wage-Payment Compliance The employee’s wages must be paid through the Wage Protection System or another approved payment arrangement, as applicable. Pension Registration The employee must be registered with an approved pension or social-security fund in accordance with the applicable requirements. Genuine Employment The employment relationship must reflect actual work and comply with the relevant legal requirements. Employers should verify these conditions before relying on the employee in their compliance calculations. Can Part-Time Emirati Employees Count? Part-time employment is recognised within the UAE employment framework. MoHRE’s published Emiratisation FAQ addresses employees under different working patterns and sets out the relevant conditions for recognition. Employers should therefore focus on whether the particular employment arrangement satisfies the applicable requirements rather than assuming that only conventional full-time office-based employees can be counted. The correct work permit, employment contract, pension registration, wage-payment arrangements and genuine employment relationship remain important. Where the counting treatment is … Read more

Emiratisation in the UAE: Policy Objectives, Targets and Private-Sector Requirements

Emiratisation in the UAE: Policy Objectives, Targets and Private-Sector Requirements

For many private sector employers in the UAE, the 2% Emiratisation hiring requirement is often viewed as another compliance obligation. However, the initiative represents much more than a hiring target. It is a long-term workforce strategy designed to increase the participation of UAE nationals in the private sector, strengthen economic sustainability, and develop future business leaders. As Emiratisation regulations continue to evolve in 2026, businesses that treat the 2% requirement as a simple quota may miss valuable opportunities to build stronger teams, enhance their reputation, and prepare for future workforce needs. This article explains what the 2% Emiratisation requirement means, why it matters, and how businesses can turn compliance into a competitive advantage. What Is Emiratisation? Emiratisation is a UAE government workforce policy designed to increase the meaningful participation of UAE nationals in the public and private sectors. In the private sector, eligible employers are required to meet progressively established Emiratisation targets under regulations administered by the Ministry of Human Resources and Emiratisation. What Is the 2% Emiratisation Requirement? The UAE government has introduced progressive Emiratisation targets for eligible private sector companies to increase the employment of UAE nationals. For many eligible mainland private sector businesses, this includes increasing the number of Emirati employees in accordance with the applicable annual targets established by the Ministry of Human Resources and Emiratisation (MoHRE). The objective is not simply to increase hiring numbers but to encourage meaningful participation of Emiratis in the private sector and support the country’s long-term economic vision. Why Was the 2% Hiring Requirement Introduced? The UAE has traditionally relied heavily on an international workforce. While this has contributed to rapid economic growth, increasing opportunities for Emirati professionals within the private sector has become a national priority. The Emiratisation programme aims to: The 2% target is one of the mechanisms used to help achieve these broader objectives. Emiratisation Is More Than Compliance Many employers initially focus on avoiding penalties. However, forward-thinking organisations increasingly recognise Emiratisation as a strategic workforce investment. Building a Sustainable Workforce Recruiting Emirati professionals helps organisations build a workforce with strong local market knowledge and long-term career commitment. Strengthening Government Relationships Companies that actively support national workforce initiatives often strengthen their reputation as responsible corporate citizens committed to the UAE’s economic development. Improving Workforce Diversity A diverse workforce that includes Emirati professionals brings broader perspectives, stronger cultural understanding, and improved customer engagement. Developing Future Leaders Many businesses are investing in Emirati employees through graduate programmes, leadership training, mentoring, and career development initiatives. This creates a stronger leadership pipeline for the future. Which Businesses Must Meet Emiratisation Targets? Emiratisation requirements apply to eligible private sector companies based on criteria established by UAE authorities. Businesses should regularly review the latest guidance issued by MoHRE to determine: As regulations continue to evolve, staying informed is essential. Common Challenges Employers Face While the objectives of Emiratisation are clear, implementation can present challenges. Finding Qualified Emirati Candidates Competition for experienced Emirati professionals continues to increase across industries. Last-Minute Recruitment Businesses that delay hiring until compliance deadlines approach often face greater recruitment pressure. Employee Retention Hiring is only the beginning. Long-term success depends on retaining and developing Emirati employees. Workforce Planning Without a structured recruitment strategy, businesses may struggle to achieve sustainable compliance. How Businesses Can Successfully Meet the 2% Requirement Plan Recruitment Throughout the Year Instead of recruiting only before compliance deadlines, organisations should adopt continuous workforce planning. This includes: Employer Support and Workforce Planning Employers requiring additional recruitment capacity may seek support from qualified HR and recruitment providers. Such support may include candidate sourcing, screening and workforce planning. Employers remain responsible for verifying their legal obligations through current MoHRE guidance. Create Meaningful Career Opportunities Emirati professionals increasingly seek employers who offer: Investing in employee development improves both recruitment and retention. Workplace Reputation and Candidate Attraction Businesses that promote a positive workplace culture and demonstrate a genuine commitment to Emirati talent often attract stronger candidates. Industries Driving Emiratisation Growth Several sectors continue to expand Emirati hiring efforts. These include: Demand for skilled Emirati professionals is expected to continue growing as these industries expand. Potential Organisational Effects The organisational effects of Emiratisation may vary according to company size, industry, role requirements and implementation approach. Potential outcomes may include greater local-market knowledge, workforce diversity and the development of national leadership capabilities. These outcomes are not guaranteed and depend on how employees are recruited, integrated and supported. Looking Ahead: The Future of Emiratisation The UAE continues to strengthen workforce nationalisation as part of its broader economic transformation agenda. Future developments may include: Businesses that invest in Emirati talent today will be better positioned to adapt to future workforce expectations. Conclusion Emiratisation forms part of the UAE’s broader workforce and economic-development policy. Its private-sector implementation includes progressively established employment targets for eligible companies and an emphasis on meaningful career opportunities for UAE nationals. Employers should consult current MoHRE and UAE Government guidance to confirm applicable requirements. Official Sources and References