Last Updated on June 25, 2022
The Ministry of Human Resources and Emiratization, formerly known as the Ministry of Labour, has classified businesses based on the number of skilled and unskilled workers, as well as their nationalities. The UAE company category list can help you figure out how much you’ll have to pay for a work permit, labor card, and visa.
When a company hires UAE residents or people from other countries, it must pay various government fees that vary depending on the company’s categorization by the MOHRE.
The company’s classification was influenced by the cultural diversity of its workforce and the proportion of skilled employees it hired.
UAE company category list
There are three major categories of companies with sub-categories in the United Arab Emirates.
I think it is very important for you to know about the skilled and unskilled workers before jumping into the company classification.
While cultural diversity is an important aspect of company classification, it is also critical to understand you as skilled and unskilled employees.
Skilled employee: Someone whose academic qualifications are higher than high school diplomas or equivalent and required attestation of thier education certificates prior to obtaining a work permit from the Ministry of Labour.
Unskilled Employee: Unskilled workers are those whose jobs do not require a degree from an accredited institution.
Cultural diversification: MOHRE has developed a formula to calculate the cultural diversity of the company’s employees.
Diversity = Number of Non-Pakistani, Non-Indian, and Non-Bangladeshi employees/ total employees × 100
For example; Suppose there are 600 employees in an organization, of which 100 are Pakistani, 120 are Indian, 70 are Bangladeshi, and 310 are of other nationalities.
Cultural diversity = 310/600*100 =51.66%
Company Category In UAE
@Class 1: The company does not require cultural diversity and skilled workers. This category includes a fishing boat owned by a UAE national and small-sized businesses.
@Class 2A: Other nationalities account for more than 50% of the company’s workforce, excluding Indians, Pakistanis, and Bangladeshis, and Skilled employees make up 40% of the total workforce at the company.
@Class 2B: The cultural diversity is more than 50% (Non-Indian, non-Pakistani, and non-Bangladeshi workers represent a majority of the labor force.), and skilled employees are 10–40%.
@Class 2C: The cultural diversity is more than 50% (Non-Indian, non-Pakistani, and non-Bangladeshi workers represent a majority of the labor force.), and where 5–10% of the employees are skill workers.
@Class 2D: The cultural diversity is less than 50% (Indian, Pakistani, and Bangladeshi workers represent a majority of the labor force.), and UnSkilled employees make up 40% of the total workforce at the company.
@Class 3:The business with the worst record in the MOL. If an organization engages in human trafficking, employs illegal workers, or falsifies Emiratization rates, it falls under this category.
The UAE government does not charge the same fee for visas and work permits to all kinds of companies, as the fee varies based on the size and type of the business.
If you want to learn what is the work permit fees for above UAE company category list need to read this full articles.
Who pays all employment-related fees?
According to UAE labor law, the employer company must pay all fees for the recruitment of their employees. Charging the employees is illegal and may result in legal consequences for the vilator.
