Nafis is the federal programme that has supported the hiring of UAE nationals in the private sector since 2021, topping up salaries, paying a child allowance and covering pension contributions. The council that runs it has extended the programme to 2040 and rewritten its rules in the process. Any UAE company with at least one Emirati employee sees a payroll line appear that it was not paying before.
What happened
The Emirati Talent Competitiveness Council (ETCC), the federal body that administers the Nafis programme, has announced that the programme is extended to 2040 and that its support mechanisms have been rewritten at the same time. Nafis was launched in September 2021 to encourage the employment of UAE nationals in the private sector: it tops up the employee's salary, pays a child allowance and covers pension contributions. The new arrangement applies from September 2026 to those joining the programme now, while existing beneficiaries are realigned gradually, over a period of up to three years. The programme covers Emirati employees in the private sector, including free zone entities and the financial and insurance sector.
What changes in practice
Four changes affect employers of UAE nationals. First, from September 2026 the private employer pays its own share of pension contributions for the Emirati employee enrolled in the programme, while Nafis continues to cover the employee's share under the subscription arrangement. Under the ordinary contribution framework introduced by Federal Decree-Law No. 57 of 2023 the employer's share is 15% of remuneration, of which 2.5 percentage points are met by the State for Emirati private-sector employees earning below AED 20,000 a month (approximately USD 5,450); the exact percentage applicable to an individual employment relationship should be confirmed with the General Pension and Social Security Authority (GPSSA), the federal pension body. Second, the minimum salary required to qualify for Nafis support is set at AED 6,000 a month (approximately USD 1,630), the same across all categories. Third, the salary top-up is recalculated by level of education: up to AED 6,000 a month for a bachelor's degree, AED 5,000 for a post-secondary diploma, AED 4,000 for secondary education, and AED 4,000 or AED 3,000 below that depending on whether the employee has dependants. Fourth, anyone currently receiving a top-up higher than the new scheme allows does not lose it at once: it is reduced by AED 500 (approximately USD 135) every six months until it reaches the new level.
Who it applies to
Every UAE company that has Emirati nationals on its payroll enrolled in Nafis, whether mainland or free zone, since the programme covers both. It does not affect companies employing expatriate staff only: there is no mandatory pension contribution for foreign employees in the UAE, and the change does not reach them. For mainland companies with fifty or more skilled employees the change lands in the same year as the Emiratisation quota — the requirement to fill a share of skilled roles with UAE nationals — which stands at 10% of skilled headcount by December 2026.
The exposure
The exposure is budgetary, not a penalty. A company that built the cost of an Emirati employee on the assumption that the pension contribution sat with the programme will find, on the first payslip under the new regime, a line that was not there before. On remuneration of AED 15,000 a month (approximately USD 4,085), a 12.5% share is around AED 1,875 a month (approximately USD 510) for each Emirati employee — over a year, a figure that changes the income statement of a small structure. The second effect falls on the employee: anyone currently receiving a top-up above the new ceiling will see it step down, and the conversation about that reduction reaches the employer even though the employer did not cause it.
What to do now
First, ask your payroll adviser for the list of Emirati employees enrolled in Nafis and the contribution rate applied to each, separating those below and those above AED 20,000 a month. Second, recalculate the annual employment cost of those relationships with the employer's share added, and check whether the 2027 personnel budget already carries it. Third, identify which employees currently receive a top-up above the new ceiling for their level of education, since those are the ones who will see the phased reduction. Fourth, for mainland companies approaching fifty skilled employees, verify the Emiratisation quota before December, because both deadlines fall in the same financial year.
Sources
- https://www.etcc.gov.ae/emirati-talent-competitiveness-council-announces-updates-to-nafis-program-following-extension-to-2040/
- https://www.khaleejtimes.com/uae/nafis-salary-rules-change-september-employees-need-know
- https://gulfbusiness.com/en/2026/uae/uae-nafis-salary-rules-september-2026-emirati-employees/
Published 3 September 2026 on the basis of public sources and official United Arab Emirates instruments. This is not legal or tax advice. Verify your position with a qualified professional before acting.