Minimum AED12,000 salary for graduates a myth

Abu Dhabi, Jan 13,2011 (ArabianBusiness): Firms must only pay skilled workers a base salary of AED12,000 if they want to be rated as a 'category A' company under a new Ministry of Labour ratings system, an official has said.

Local media reports had said graduates would be paid a minimum monthly wage of AED12,000 under sweeping changes to existing labour laws. However, the ruling only applies to firms hoping to be rated as 'A' grade employers in a new ranking system, the official said.

"There is nothing in the decree that says there is a wage limit. It is only a condition if you want to be in category A," he said.

"If a company wants to be promoted to category A then that includes a 'skilled level' salary... If the company pays less than AED12,000 it cannot be in category A."
The Ministry of Labour last month unveiled widespread changes to the country's labour laws, which took effect on January 1.

The overhaul saw labour card validity cut from three to two years, and the retirement age for foreign workers raised from 60 to 65-years.

It also abolished the need for skilled expat workers to secure a no-objection certificate from former employees before taking up a new job, and paved the way for teenagers between 15 and 18-years-old to work in part-time jobs.

The new framework also unveiled a three-part ranking system for UAE firms based on points such as diversity, salary payment, accommodation standards and compliance.

To secure an 'A' ranking, companies must pay graduates a base wage of AED12,000 a month, medium-skilled works AED7,000 a month and low-skill workers AED5,000 a month.

The scheme is partly geared towards boosting Emiratisation policies - and, as a result, at least 15 percent of the workforce in 'A' companies must be Emirati, a figure that rises to 20 percent at senior or management level.

Category B companies must have at least 25 percent of workers from different countries while any black points given to category C - the lowest rating - will be in place for a year, the official said.