Photo for illustrative purposes only. ARCHIVE

Ministry warns private firms, pension, security system registration

The Ministry of Human Resources and Emiratisation (MOHRE) has urged private companies to register Emirati employees in UAE's pension and social security systems. The registration of Emirati employees in the UAE's pension and social security systems is a requirement to get support from the Nafis program. According to the ministry, the Nafis program is a step to enhance the competitiveness of national cadres to work in private companies. The ministry highlighted that 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. MOHRE reiterated that registration is "mandatory" for all private companies. Non-compliant companies would result in fines and penalties based on the law. “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's delay,” the ministry said in a statement. Emirati employees are also responsible for ensuring they are registered, and contributions are paid based on real wages. According to MOHRE, any breach or manipulation in the payment of contributions would decrease the value of the employee’s insurance benefits upon retirement. This also makes the employers liable for penal action. If an employee's work permit is canceled, the employer must coordinate with the pension and social security authority regarding the employee's end-of-service benefits. RZSP/Expat Media
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