Last Updated: Sun Jan 02, 2011 10:09 am (KSA) 07:09 am (GMT)

UAE fixes minimum salary for its professionals

Companies in the UAE now have to comply by having at least 20% professionals of their total staff
Companies in the UAE now have to comply by having at least 20% professionals of their total staff

Among the other newly introduced changes, the UAE’s ministry of labor announced the introduction of minimum wages for its professional workforce.

At least 20 percent of the total manpower should be of professional levels (1-2-3), the UAE’s labor ministry said on its website, however it did not detail the professional criteria of the three levels, but it fixed minimum wages for each.

Level one salary should not be less than $3,333 (Dh 12,000), level two $1,944 (Dh 7000), and $1,388 (DH5,000) .

"Our ethical and legal mandate requires us to strive to explore and roll out mechanisms that embody the sincere commitment of the political leadership to put in place a safe and stable environment and to protect rights of all categories in the community," said the minister of labor, Saqr Gobash Saeed Gobash.

Emiratization & fines

The ministry also stipulated a new Emiratization condition, where 15 percent of the total number of the staff in the three professional levels should be Emiratis.

Also, companies are now categorized into three groups, and can be downgraded and made to pay the ministry’s newly introduced penalty and black-point system against offenders if they violated rules.

“So far as the third group is concerned, the resolution indicated that a firm on the second group which accumulates 100 black points will be downgraded to the newly introduced third group,” the ministry's website said.

"The newly introduced third group will include companies that are convicted by courts for recruiting infiltrators, committing human trafficking or bogus Emiratization and providing wrong information to the Wage Protection System with the aim of evading the system," it added.

Also, restoring the company’s former category is only possible after one year from the date of the downgrading and only after the violation is corrected.

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