Sunday, January 2, 2011

The Ministry of Labour UAE announced minimum wage limit for different categories of workers

The Ministry of Labour on Saturday announced a minimum wage limit for different categories of workers, depending on their qualifications.According to new labour laws, employees under skilled class level 1 (those with a Bachelor's degree) should earn a minimum Dh12,000 a month.Diploma holders, who come under skilled class level II, should earn not less than Dh7,000 and workers who have passed high school should be paid a minimum salary of Dh5,000.
The ministry urged strict implementation of Wage Protection System (WPS) and called on companies to adhere to the salary structure according to the amended classification.With a focus on emiratisation, the ministry has amended a few labour laws that stipulate establishments hire employees under three categories.
According to the new amendment, nationals should not be less than 15 per cent of the total staff of any company.
Similarly, the skilled class (inclusive of three levels) should not be less than 20 per cent of the total employee strength of any company.The ministry has also classified establishments according to the type of employees they hire.
Depending on the percentage of diversity among staff, companies now fall under three categories (first and second and third), and category II includes three levels (a, b and c).
A facility will fall under level (a) if the diversity among employees is at least 25 per cent; under level (b) if diversity among workers is between 25-50 per cent; and under level (c) if the diversity is 50 per cent or more.
A company can be upgraded to second level irrespective of the diversity provided the skilled class is not less than 20 per cent of total workforce. Similarly, companies can be downgraded if they violate labour laws, clarified Labour Ministry.