Dh12k salary for degree holder’s applies to only Category I firms UAE Labour Ministry

Dh12k salary for degree holder’s part of new company classification policy,UAE Labour Ministry clarifies that amendment applies to only Category I firms under the new system

The UAE Ministry of Labour has clarified that new labour law amendments due to be implemented in July this year are aimed at easier categorisation of companies operating in the country.The new amendments, one of which states degree-holders must be paid a minimum of Dh12,000 per month, however, come as requirements if the company aims to be included under Category I.

A top official at the Ministry of Labour told this website that companies will be classified into three categories [I, II and III], according to skill levels of employees and Emiratisation ratio.

For enterprises to be included under Category I, 20 per cent or more of their total staff must fall under skill levels 1 (degree-holders), 2 (diploma holders) and 3 (unskilled workers).

The salary of employees (both citizens and expatriates) under skill level 1 [holders of Bachelor’s degree or higher] should not be less than Dh12,000, according to the new Labour Ministry resolution.

Salary for diploma holders should not be less than Dh7,000 and for those who fall under skill level 3 should be paid a minimum of Dh5,000 per month.

Minister of Labour Saqr Ghobash said that all establishments should aim to become Category I firms.

Proportion of Emiratis included across the three skill levels should not be less than 15 per cent of total staff strength. It is mandatory for national employees to be registered with one of the public bodies or government funds such as a pension and social security scheme, and avail retirement benefits at the UAE level or at the individual emirate level.

Private sector establishments that make it to the top category can avail several benefits including a waiver in visa deposit fees and bank guarantees, among others. However, if they fail to adhere to the rules, companies will be demoted to the lower categories, said a ministry official.

Category I private sector companies, which do not meet the abovementioned guidelines will be demoted to Category II.

According to Council of Ministers' Decision No 26 of 2010, companies included under Category I will be exempted from paying guarantees on deposits. According to Article V of the Ministerial Resolution, companies listed under Categories II and III must pay bank guarantees.

Category II firms will be further sub-divided into three levels – A, B and C. Firms listed under Category II (A) will be obliged to pay Dh3,000 bank guarantee for each worker, with a maximum of Dh1.5million.

Facilities under Category II (B) will pay a bank guarantee of Dh3,000 for each worker but with a maximum of Dh3m. And companies classified in the Category II (C) will pay bank guarantee of Dh3,000 for each worker with a maximum of Dh5m.

Similarly, establishments under Category III are entitled to pay a bank guarantee of Dh3,000 for each worker with a maximum of Dh10m.

However, the ministry has exempted industrial projects licensed by the Ministry of Economy, as well as companies and institutions under Federal or local government from paying bank guarantees.

Non-profit organisations, cooperative associations, national associations under the supervision of the Ministry of Social Affairs are also exempted from bank guarantee payments.

Similarly, projects approved by the Ministry of Finance need not pay bank guarantee.

No ‘fictitious Emiratisation’

Minister of Labour Saqr Ghobash said once the new categorisation comes in place, it will give establishments an opportunity to enhance their workplace functions and take advantage of the various benefits that await them.

The recommended classification structure has taken into account the current market condition, Emiratisation requirement, salaries and other expenses such as housing etc. whereas the ministry was earlier focusing only on the workplace aspect.

Such requirements are bound to open up more jobs for nationals and will do away with “fictitious Emiratisation”, Ghobash added.Category I should be the aim of all establishments, he said.

Once categorised, no going back

Meanwhile, Humaid bin Dimas, Assistant Undersecretary of the Ministry of Labour, was quoted by Al Khaleej newspaper as saying in one of the weekly labour meetings that once the establishments are upgraded to Category I, they cannot reduce salaries of employees. If any such incident comes to light, the company will be downgraded.

Bin Dimas also urged companies to adopt WPS [wages protection system] and transfer salaries to banks. The new amendments also include a two-year validity of labour cards and reduced fee for labour transfer, he added.

One-year ban will be imposed on offenders of labour and residency laws- Ministry of Labour

Workers in the private sector, who have a one-year ban imposed on them by the Labour Ministry for violating labour or residency laws, need to complete the ban before being able to apply for a new job, ministry officials have said.

Officials at the Ministry of Labour's Open Day yesterday said that the one-year ban is different from the six-month ban imposed by the ministry.

The ministry clarified that no automatic six-month ban will be imposed on workers who leave their jobs but a one-year ban will be imposed on offenders of labour and residency laws, including violating labour laws, or breaking an employment contract.

Last month, new rules were issued by the labour ministry allowing a worker to switch jobs after the end of his employment contract without requiring a no-objection certificate to avoid a six-month ban.

Officials have clarified that the new rules have nothing to do with other bans.

During the Open Day, many employers requested the ministry to reduce fines imposed on them citing a lack of awareness.The ministry declined to cancel the one-year ban imposed on four workers Thursday because they did not yet complete the ban period, even if one or two months were left to complete their one-year ban period. According to Aysha Bilharfya, Director of the Department of Labour Office said that there was no exemption on ban issue.

She said the ministry will not remove the ban for any worker before a year from the date of the ban, noting that there were no exceptions in this regard.

She said that the ban imposed on workers who offend the labour law is different from what used to be called "Ministry of labour six-month ban," which is cancelled by the new decisions and allows a worker who is ending his or her work relationship with the current sponsor to obtain a new permit and move to another company.

One year ban will continue - Ministry of Labour UAE

This article from an earlier period highlights the distinction between the new rules that eased sponsorship transfer and the continuing penalty of a one-year ban for workers who committed a violation, such as breaching a contract or being absent without a valid reason.

However, the legal landscape has undergone significant changes since this report, especially with the introduction of the Federal Decree-Law No. 33 of 2021 (the UAE Labour Law).¹

Here is an analysis of the key points with the current (2025) legal context:

🚫 Worker Violations and Employment Bans: Current UAE Labour Law

1. The Employment Ban (Work Permit Restriction)

2010 Context	Current (2025) Legal Status of Employment Ban
Old Rule: A mandatory one-year ban was imposed on workers who breached a fixed-term contract or absented themselves from work without a legitimate reason (absconding).	Current Law (2021): The automatic six-month or one-year ban for employees who switch jobs is largely abolished for those on the new fixed-term contracts (max 3 years), provided the termination is lawful (i.e., serving the required notice period).
Violation Ban: However, the concept of an employment ban still exists for specific violations and is now addressed as a Work Permit Restriction (WPR).	Serious Violations: MoHRE can still impose a Work Permit Restriction (WPR)—effectively a ban—on employees found to have: * Absconded: Ceasing work without a legitimate reason and failing to return (which can result in a one-year ban and fines). * Breached Legal Obligations: Committing serious offences or violating the terms of a legal dispute resolution.

2. Termination Due to Company Closure

The woman's query highlights a situation where the company closed due to the employer's death, and the worker failed to inform the ministry.

• Current Law: In cases of company closure, bankruptcy, or death of the employer, the employee's contract is considered terminated by law.²
• Worker Obligation: While the old rule required the worker to inform the ministry within a reduced timeframe (2 months), the current focus is on ensuring the employee receives their end-of-service benefits. Employees must now approach MoHRE (Ministry of Human Resources and Emiratisation) to resolve the status of their work permit and receive their dues.

3. Fines on Companies for Delayed Labour Cards

The report mentions an easing of the rule on fines for companies that delay or fail to renew labour cards, explicitly stating that fines will be paid by the companies, not the workers.

• Current Law (Confirmation): This principle is still strictly enforced. Under the current UAE Labour Law, the employer is legally responsible for all fees, fines, and costs related to the employee's work permit, residency visa, and labour card renewal.³ The employer cannot legally pass these fines onto the employee.
• WPS Penalty: The most significant fines today are linked to the Wages Protection System (WPS) non-compliance, where fines can reach up to AED 20,000 for each violation of salary payment.

In Summary: While the ability to transfer sponsorship is far easier today, serious employment breaches like absconding can still result in a Work Permit Restriction (ban) imposed by MoHRE. The employer remains fully responsible for all work permit and visa-related fees and fines.

Would you like me to clarify the current steps an employee should take if their employer closes down or fails to pay their final dues?

 

Emirates airline offers short term visa for Canadians at just $61

Canadians travelling through Dubai can obtain a short-term visa of four days for $61.5 (Dh225.9), provided they are travelling with Emirates airline.Similarly, Canadian citizens, holding a valid residency in the UAE and wanting to bring their parents and immediate relatives on a visit, can do so by booking tickets on Emirates airlines.

The visa charges are now $74.5 (Dh273.6) for a 30-day visa extendable by another 30 days.A 90-day visa only for parents or in-laws travelling by Emirates is available for for Dh1155.

“The facility is only available to passengers of Emirates airline irrespective of the nationality,” said an Emirates official at the Dnata office on Sheikh Zayed Road.

"Canadian travellers can now apply for and purchase UAE visas online via www.emirates.com. All ticketed Emirates customers, regardless of whether their ticket was purchased via a travel agent, online via www.emirates.com, or directly from an Emirates call centre or retail shop, may log-in to ‘Manage a Booking’ on www.emirates.com and access the application tool. Both 96 hour and 30 day visas are available and these will be issued via email within 3-4 working days," said a statement isued by Emirates airline.

Canada, until recently, was among more than 30 countries whose citizens could travel to the UAE on a free one-month visa.

But the UAE authorities recently amended the rules whereby Canadians will now have to pay $1,000 for a six-month multiple entry visa and the maximum stay is 14 days per visit. A three-month visa will go for $500. A 30-day visa will cost $250.

In October last year the UAE had given a 30 day deadline for the Canadian military personnel to leave the Camp Mirage base outside Dubai.

The irony is that the diplomatic standoff between Canada and the UAE centres around airspace and the nations carriers. Now it is the Emirates route that seems best for Canadians.

Earlier Story: Canadians to pay $998 for UAE visa

Canadian citizens travelling to the UAE will need to budget a little extra time and money when planning their trips.The UAE Embassy in Canada has announced it will charge Canadian nationals up to C$1,000 (US$998) for entry visas to the Gulf country from January 2 onwards.

The UAE Embassy in Ottawa has posted the new rates on its website, including a short-term (30 days), non-renewable visa that will cost C$250 ($249), a long-term (3 months) non-renewable visa for C$500 ($499), and a six-month multiple-entry visa for C$1,000 ($998), which allows for a maximum stay in the UAE of 14 days per visit.

While Canada was earlier among the list of 30-plus countries whose nationals do not require a visa to travel to the UAE - including the US, Germany, Japan and France - travellers will now need to apply for the visa about three weeks prior to flying.

The complete visa application needs to be sent to the UAE Embassy 15 working days before the departure date, according to the new requirements. The amount paid "is non-refundable in case of a visa refusal," the embassy said, adding that visa requirements may change in the future.

The new fees come into effect January 2.The decision for Canadian nationals to require visas to enter the UAE was announced in November.

UAE Labour Fines: Analyzing the 2010 Write-Off and What Companies Must Do in 202

The Ministry of Labour's historic decision to write off Dh1 billion in fines on unrenewed labour cards between 2000 and 2010 stands as a landmark moment in UAE labour policy. While this one-off amnesty provided massive relief to approximately 28,500 companies, the current landscape under the Ministry of Human Resources and Emiratisation (MoHRE) operates with a significantly stricter compliance framework.

Understanding the motivation behind that 2010 amnesty—to encourage companies to "legalise their status"—is crucial for navigating the zero-tolerance approach of 2025. Today, the focus is not on historic clean-up, but on mandatory and continuous adherence to the new Federal Decree-Law No. 33 of 2021.

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⚖️ Then vs. Now: The Shift from Amnesty to Strict Enforcement

The most significant change is the move from the old "Ministry of Labour" to the modern, technologically enhanced MoHRE. The former relied on large, infrequent amnesty programs; the latter uses robust digital monitoring systems, including the Wage Protection System (WPS) and AI tools to flag violations immediately.

2010: The Amnesty Era (Dh1 Billion Write-Off)

Feature	Details	New Capped Fines
Goal	Clear a decade-long backlog of non-renewals (2000–2010).	Dh2,000 or Dh5,000 per card, regardless of duration.
Strategy	Blanket reduction (80%) to incentivize formal registration.	Aimed at integrating non-compliant staff into the legal system.
Context	Pre-dates the major Federal Labour Law reforms.	Focused solely on non-renewal penalties.

2025: The Compliance Era (MoHRE)

Feature	Details	Key Penalty Range
Goal	Achieve global labour market integrity, worker protection, and national agenda targets (Emiratisation).	Penalties can reach up to Dh1,000,000 for serious violations.
Strategy	Mandatory, continuous compliance (WPS, fixed-term contracts, Emiratisation targets).	Fines are often cumulative and multiply per employee or per day.
Context	Governed by Federal Decree-Law No. 33/2021 and its amendments.	Focus is on work permits, wages, contracts, and national talent.

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⚠️ What Companies Must Do in 2025: Compliance Essentials

Unlike the historical fine, which addressed a single administrative failure (labour card renewal), today's regulations impose strict requirements across all facets of the employment relationship. Employers must prioritize the following to avoid massive fines and sanctions:

1. Work Permits and Contracts (The Modern "Labour Card")

• Timely Issuance & Renewal: The digital work permit (the modern equivalent of the labour card) must be issued and renewed on time. Failure to renew a work permit within the 60-day grace period may result in a Dh500 fine.

• Fixed-Term Contracts: All employees must be on fixed-term employment contracts. Unlimited contracts are abolished and must have been converted.

2. Wage Protection System (WPS)

• Mandatory Payment: All companies registered with MoHRE must use the Wage Protection System (WPS) to pay salaries.

• WPS Violations: Delays in paying wages or attempts to circumvent WPS protocols attract significant penalties, including suspension of the company's work permit services.

3. Emiratisation Targets

• Mandatory Quotas: Private sector companies with 50 or more skilled employees must increase their Emirati workforce by 2% annually, aiming for 10% Emiratisation by the end of 2026.

• Non-Compliance Fine: Failing to meet the semi-annual targets results in an annual financial contribution of Dh42,000 for every Emirati not appointed.

• Fake Emiratisation: Any manipulation of records or 'Fake Emiratisation' schemes results in fines starting at Dh100,000 for the first offence, escalating to Dh500,000 for repeat violations.

4. Severe Administrative Penalties

MoHRE applies high-value fines for serious breaches, which include:

• Employing a worker without a valid work permit: Penalties starting at Dh50,000 per worker.

• Providing false data/documents to MoHRE: Violations leading to sanctions and potentially judicial referral.

• General Labour Law Violations: Fines for breaches of the Labour Law (Art. 33/2021) can range from Dh5,000 to Dh1,000,000.

The Bottom Line:

The 2010 fine write-off was an exception—a governmental cleanup effort. In 2025, MoHRE operates with the expectation of proactive compliance. The current fines are punitive and designed to enforce adherence to the highest international standards of employment and worker protection.