New policies aiming at raising the minimum pay for workers under the "Employment Contract for Student Citizen" system were revealed by the United Arab Emirates' Ministry of Human Resources.
Raising the minimum wage
The Ministry said that it has now become obligatory for private sector companies, which employ cadres of Emirati citizens with a citizen-study work contract, to raise the minimum wage for these employees, provided that it is less than 4,000 dirhams, within the Wage Protection System program announced by the Ministry of Human Resources and Emiratisation in the United Arab Emirates.
Employment contract system for student citizens in the Emirates
It is worth noting that the Ministry of Human Resources in the UAE had previously announced the system for employing citizens enrolled in studies, which is one of the “Nafis” programs for Emiratisation, which was approved by the Ministry in cooperation with the Emirati Cadres Competitiveness Council.
Through this project, the Ministry aims to organize the contracts of any private sector company with national cadres enrolled in studies within one of the programs supported and approved by “NAFES”, within the specialized professions and jobs.
Issuing a work permit for the citizen according to a specific form
The Ministry of Human Resources said that private sector establishments are required to issue a work permit to the citizen according to a form specified in the ministry’s system, within the percentages or Emiratisation targets required of Emirati establishments.
The Ministry also requires establishments that the profession in the employment contract must be consistent with the specialty of the student citizen contracted with, with the obligation to pay a monthly wage whose value is determined in the contract, provided that it is not less than 4,000 dirhams, to be paid through the Wage Protection System.
Registering employees in the state’s approved pension funds
The Ministry also stipulates that the establishment must register the student citizen in one of the state’s approved pension funds. The Ministry of Human Resources in the UAE clarified that it is not permissible to combine the benefits and privileges of “NAFES” for national workers in the private sector, in addition to the rewards granted to the student citizen who is enrolled in study within one of the Programs supported and approved by the UAE Talent Competitiveness Council “NAFES”.
Amending the student citizen’s employment contract
The Ministry also confirmed that establishments are also required to amend the employment contract of the student citizen after his graduation to a “citizen employment contract” based on the models approved by the Ministry.
The Ministry also obligates companies to adjust the wage level in accordance with the establishment’s regulations in the same professions, provided that the contract period after the amendment is not less than the duration of study during the duration of the “study citizen contract,” at least, while obliging companies to employ employees in the same field of specialization.
Obligations of the student citizen’s employment contract
1- Payment of a monthly wage to the citizen (the second party) as agreed upon through the Wage Protection System.
2- Register the citizen in one of the state’s approved pension funds and pay contributions on a regular basis.
3- Training the citizen in the facility in the same contracted specialty in parallel with the study.
4- Providing an appropriate training environment that will increase his skills and abilities without exposing him to health risks.
5- Appointing the citizen in a job consistent with his specialty after successful graduation in accordance with the functional, professional and professional principles of this job, for a period not less than the duration of the contract.
6- Do not change the agreed-upon academic specialization except after the approval of the employer and the ministry.
7- Successfully passing the academic study program from the educational body.
8- Full commitment to agreed training dates, controls and conditions.
9- Maintaining the work secrets he learns during the training period.
10- Joining work for the first party in the profession that is compatible with his specialization for a period not less than the duration of this contract.
Minimum wage in the UAE 2024
The labor law sets restrictions meant to guarantee that the worker gets a pay that satisfies his fundamental necessities rather than simply stating the minimum wage. The law also underlines the need of figuring out end-of-service benefits for employees who serve one or more years.
Actual minimum salaries in the UAE
Salary-wise, the actual minimum pay in the UAE is said to be about AED 4,370. With people making on average AED 19,600 per month, average salaries in the UAE differ based on economic sector and years of experience. The greatest actual pay in the UAE is roughly 90,101 dirhams, which some private employment can offer.
