How UAE Companies Can Get Work Permit Fee Discounts

The new classification of companies in the UAE, which comes into effect on June 1, splits existing companies into three distinct categories depending on the extent to which they comply with policies related to the wage protection system, Emiratisation, promoting cultural and demographic diversity, and protecting workers' rights, or the transactions are undertaken.

Finally, the classification sets new fees for services in a manner that is practically tied to the choices employers will make.

Firms that exceed government-mandated Emiratisation rates and meet certain criteria will be offered discounts on work permit fees and other incentives.

The most existing companies in the country that fulfil all their commitments will fall into the second category (Tier 2), while those that fail to comply with the rules will drop to Tier 3.

Some companies will be promoted to Tier 1 if they meet at least one of these standards:

Benefits/ fee discounts:

The Ministry's service fees for work permits and transfer will not exceed AED 250 for Tier 1 companies for two years.

Tier 2 companies will be charged AED 1,200 for two years.

Tier 3 companies will not be able to benefit from any fee rebates, and the fees for issuing or renewing work permits will amount to AED 3,450 for two years. Activities involving the employment of UAE and Gulf Cooperation Council citizens are exempt from these fees.

The new classification for companies is divided into 3 categories to meet customers' requirements in facilitating transactions. Companies will be classified correctly through an automated interactive system that transparently enables a classification change of companies. #UAE pic.twitter.com/P9LGqZMIN6

— MOHRE_UAE وزارة الموارد البشرية والتوطين (@MOHRE_UAE) May 24, 2022

The UAE recently announced its decision to raise the current Emiratisation rates by two per cent annually for skilled jobs in private sector companies that have 50 or more employees, going up to 10 percent by 2026.