Emiratisation in UAE: Ministry warns of fines for not registering nationals in pension, social security systems

It’s mandatory for private sector companies to register their Emirati employees in the UAE’s pension and social security systems to obtain support from the Nafis programme, the Ministry of Human Resources and Emiratisation (MoHRE) has announced.

“It is the responsibility of the private sector companies to register Emirati employees in the pension and social security systems in the country within one month from the date of work permit issuance,” the MoHRE explained in a statement on Thursday.

Failing to register the Emirati employees in the systems would result in fines and penalties “based on relevant decisions, law and legislations”.

The MoHRE 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.”

The registration in the systems would ensure the provision of Nafis support to employees and “guarantee the rights of both parties”.

“Failing to register Emirati employees does not exempt the employer in the future from registering them with retrospective effect and paying penalties for each day of delay,” said the MoHRE. “The registration is the employer’s responsibility. However, this does not exempt the Emirati employee from the responsibility of ensuring that they are registered and contributions are paid on their behalf based on real wages.”

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

The ministry also explained that if the work permit of an Emirati employee is cancelled, the employer must coordinate with the pension and social security authority on end-of-service benefits.

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