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 employer’s legally prescribed pension contribution.
- The employee’s legally prescribed pension contribution.
- Any government contribution provided under the applicable pension legislation.
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:
- Employee contribution: 11%.
- Employer contribution: 15%.
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:
- Employer pension contributions.
- Recruitment costs.
- Employment administration.
- Training and onboarding.
- Equipment and technology.
- Employee benefits.
- Professional development.
- Other applicable employment expenses.
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:
- Pension fund.
- Date of first registration.
- Applicable legislation.
- Contribution-account salary.
- Employment category.
- Relevant government support.
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:
- Applicable pension authority.
- Pension registration details.
- Contribution-account salary.
- Employer contribution rate.
- Employee contribution rate.
- Any statutory government contribution.
- Whether employer-side Nafis reimbursement was previously included.
- Actual employer-funded contribution after the September update.
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 high school, unmarried without children | AED 3,000 |
The revised salary-support framework generally requires an eligible monthly salary between AED 6,000 and AED 20,000, together with the other programme conditions.
Existing beneficiaries may be subject to transitional arrangements.
Changes to Existing Salary-Support Benefits
Certain beneficiaries registered on or before 14 August 2026 are subject to gradual reductions in support.
The treatment depends on factors including salary level, existing benefit amount and applicable employment category.
Employers should avoid promising a candidate a particular Nafis amount without confirming eligibility.
Child Allowance Changes
The revised Nafis child allowance provides AED 600 per eligible child per month without a fixed limit on the number of eligible children, subject to the programme’s conditions.
This is an employee-support benefit, not a replacement for the employer’s salary obligations.
Does Nafis Salary Support Reduce the Employer’s Salary Obligation?
No.
Employers should distinguish between the salary agreed under the employment contract and financial support provided through Nafis.
The company remains responsible for meeting its applicable contractual and legal wage obligations.
Nafis assistance is subject to programme eligibility and should not be treated as an automatic employer subsidy.
For example, an employer should not assume that a candidate receiving Nafis salary support permits the business to disregard applicable wage requirements.
This distinction is especially important when preparing job offers.
How to Update Your Emirati Hiring Budget
Step 1: Review Your Existing Payroll Model
Start by identifying how pension contributions are currently calculated.
Check whether your payroll software or financial model still includes an employer-side Nafis reimbursement.
Step 2: Identify the Applicable Pension Scheme
Confirm the relevant pension authority and legislation for each employee.
Avoid applying a single rate to all UAE nationals without checking their pension status.
Step 3: Recalculate the Employer-Funded Contribution
Determine the employer’s actual contribution after accounting for any applicable statutory government contribution.
Remove discontinued Nafis employer reimbursement from the calculation.
Step 4: Review Planned Emirati Hires
Update the forecast for every position your company expects to fill.
This should include salary, pension contributions, onboarding and other employment costs.
Step 5: Reconcile Actual Contributions
Compare payroll deductions and employer contributions with the relevant pension authority’s records.
Investigate discrepancies promptly.
Step 6: Update Management’s Hiring Forecast
Provide finance and management with revised employment-cost estimates.
This allows recruitment decisions to be made using current assumptions.
Step 7: Communicate Accurately With Candidates
Explain the employment package clearly.
Distinguish between employer-provided compensation and government support for which the employee may qualify.
What Should HR Include in a 2026 Emirati Hiring Budget?
A useful budgeting template should cover the following items.
| Cost category | Budgeting consideration |
|---|---|
| Basic salary | Contractual monthly amount |
| Other salary components | Allowances included in the agreed package |
| Employer pension contribution | Applicable employer-funded amount |
| Recruitment costs | Advertising, sourcing or agency fees |
| Onboarding | Employment administration and induction |
| Equipment | Laptop, software and other tools |
| Training | Role-specific professional development |
| Employee benefits | Applicable contractual or company benefits |
| Annual cost | Total forecast expenditure |
The contribution-account salary used for pension purposes may not be identical to every component of an employee’s overall remuneration.
Payroll teams should confirm the correct contribution base.
Could Higher Pension Costs Affect Emiratisation Recruitment?
Employers may need to adjust their budgets, particularly where earlier hiring forecasts relied on pension support that is no longer available.
However, the change should not lead businesses to treat Emirati recruitment as a purely short-term cost.
Genuine Emiratisation can support long-term workforce development through:
- Improved access to UAE national talent.
- Succession planning.
- Professional skills development.
- Stronger local market understanding.
- Workforce stability.
- Future leadership development.
The appropriate response to a change in employment cost is better financial planning, not lower-quality recruitment.
Why Employers Should Not Delay Emirati Hiring Until December
The September 2026 pension update comes during the final part of the year, when many employers are also reviewing their Emiratisation targets.
Businesses that need additional Emirati professionals should avoid waiting until the final weeks of December.
Recruitment may require time for:
- Candidate sourcing.
- Interviews.
- Offer negotiations.
- Notice periods.
- Work permits.
- Pension registration.
- Payroll setup.
- Onboarding.
Budget approval should therefore happen early enough to support genuine recruitment.
A company that discovers an unexpected pension cost late in the process may face additional internal approval delays.
Can Recruitment Partners Help Employers Plan More Effectively?
A specialist Emiratisation recruitment provider may help businesses understand the recruitment market and identify candidates whose experience aligns with available positions.
Depending on the provider’s services, support may include:
- Candidate sourcing.
- Salary benchmarking.
- Skills-based screening.
- Interview coordination.
- Recruitment scheduling.
- Workforce planning.
However, recruitment providers should not make unsupported promises about Nafis eligibility or pension costs.
Employers should obtain pension-specific clarification from the relevant authority or a qualified payroll and pension adviser.
Common Mistakes to Avoid After the September 2026 Nafis Update
Assuming Nafis Still Reimburses the Employer’s Pension Share
The revised programme no longer provides employer-side pension reimbursement.
Assuming All Government Pension Support Has Ended
Separate statutory government contributions may still apply under the relevant pension legislation.
Using the Same Contribution Rate for Every Emirati Employee
Different pension laws and funds may apply.
Confusing Salary Support With Employer Salary
Nafis salary support is separate from the employer’s own wage obligations.
Forgetting Existing Employees
Budget reviews should include employees already on the payroll, not only future hires.
Making Offers Before Confirming the Full Cost
HR and finance should agree on the complete employment budget before issuing an offer.
A Practical Payroll Checklist for October 2026
Employers should review the following items:
- Confirm which Emirati employees are registered with each pension authority.
- Identify the applicable pension legislation.
- Check the correct contribution-account salary.
- Verify employer and employee contribution rates.
- Confirm whether statutory government support applies.
- Remove discontinued Nafis employer reimbursement assumptions.
- Reconcile September and October payroll calculations.
- Update hiring budgets for the remainder of 2026.
- Verify relevant Nafis eligibility information.
- Establish a regular payroll and pension compliance review.
This can help prevent avoidable budgeting errors and improve coordination between HR, payroll and finance.
Conclusion
The September 2026 Nafis pension-support update has changed an important part of the financial planning process for businesses employing UAE nationals.
Employers can no longer rely on the previous Nafis reimbursement of employer pension contributions.
However, the change should not be confused with the removal of separate statutory government pension support.
For UAE businesses, the priority is to understand the applicable pension scheme, calculate the actual employer-funded contribution and update hiring budgets accordingly.
This is particularly important for organisations planning additional Emirati recruitment before the end of 2026.
Your Emirati hiring budget should reflect the real cost of employment—not pension-support assumptions that applied before September.
Frequently Asked Questions
What changed in Nafis pension support in September 2026?
Nafis stopped reimbursing employers’ pension contributions under its pension programme. Eligible support now focuses on contributions payable on behalf of Emirati employees.
Do UAE employers now pay the full pension contribution for Emirati employees?
Employers must pay their legally required share. This does not necessarily mean paying the employee’s contribution or losing any separate statutory government contribution that applies under pension legislation.
Does the Nafis pension change affect existing Emirati employees?
Employers with existing UAE national employees should review whether their budgets relied on the discontinued Nafis employer reimbursement.
What is the GPSSA pension contribution rate under Federal Decree-Law No. 57 of 2023?
For individuals covered by that legislation, the combined rate is 26% of the applicable contribution-account salary, comprising 15% for the employer and 11% for the employee. A separate statutory government contribution may apply to eligible private-sector employees.
Is the AED 6,000 Nafis salary-support threshold the same as the pension contribution salary?
No. Nafis salary-support eligibility and the contribution-account salary used under pension legislation are separate concepts with different rules.
Can employers reduce salaries because Nafis provides employee support?
Employers must comply with their contractual and legal wage obligations. Nafis assistance should not be treated as a substitute for those obligations.
Should companies revise their Emirati recruitment budgets in 2026?
Yes. Employers should review pension contributions, remove outdated Nafis reimbursement assumptions and update the full employment-cost forecast for existing and planned hires.
Where can employers confirm Nafis pension-support eligibility?
Employers and employees can consult the official Nafis platform and the relevant pension authority for information about programme eligibility and pension obligations.Nafis Pension Support Changed in September. Has Your Emirati Hiring Budget Caught Up?
- GPSSA — Monthly Contribution Employer Guideline: Explains the 26% contribution structure and the separate statutory government contribution for eligible employees. nafis.gov.ae
