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Thursday, February 16, 2023

Registration of Emirati employees in private sector in pension, social security systems ‘mandatory’ for companies, ‘precondition’ for Nafis support to employees

The registration of Emirati employees working in the private sector in the UAE’s pension and social security systems is a precondition to obtain support from the Nafis program, the Ministry of Human Resources and Emiratisation (MoHRE) said.

“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,” MoHRE explained in a statement today.

Failing to register Emirati employees in the pension and social security systems would result in fines and penalties on non-compliant companies, based on relevant decisions, law and legislations.

The Ministry added: “The UAE government launched the Nafis program 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 Ministry said it is “mandatory” for companies to register their Emirati employees in the pension and social security systems, adding: “This 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,” MoHRE continued.

“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, and this also makes the employers liable to penal action.”

The Ministry explained that if the work permit of an Emirati employee is cancelled, the employer must coordinate with the concerned pension and social security authority on the employee’s end-of-service benefits, as well as service merging.

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