The landscape of payroll management in the Middle East is ever-evolving, influenced by initiatives like Emiratization, updated labor laws, and new tax frameworks. As a leading provider of payroll outsourcing services, we’re here to keep you informed about essential updates that could impact your business in 2024.
- The Tightening Deadline of Emiratization in the UAE for Small Businesses
Key figures until august 2023
Data from various research in the HR industry shows that 79,000 Emiratis are employed in the private sector, marking a 57% increase in employment rates for UAE nationals.
Non-Compliance Risks
Failure to adhere to Emiratization guidelines could result in severe repercussions, making compliance essential for even small businesses.
Industries Affected
The following industries need to pay close attention to these rules:
- Information and Communications
- Financial and Insurance Activities
- Property/Real Estate
- Scientific and Technical Activities
- Administrative and Support Services
- Education
- Human and Health and Social Work
- Arts and Entertainment
- Mining and Quarrying
- Transformational Industries
- Construction
- Wholesale and Retail Trade
- Transportation and Storage/Warehousing
- Accommodation and Hospitality Service Activities
Penalties
Failure to meet the requirements by the target deadlines will result in penalties of AED 96,000 for the year 2024 and AED 108,000 for the year 2025.
- Oman’s Transforming Labor Laws : Stay Tuned
Oman is currently undergoing substantial revisions in labor rights, leave entitlements, and contractual matters.
Consult with Us
Our expert team is on standby for consultations, offering strategic insights during this transformative period.
- The Introduction of the Golden Pension Scheme in the UAE
Innovative Approach
This new scheme, backed by National Bonds and the Investment Corporation of Dubai, aims to simplify investment for end-of-service benefits.
How It Affects You
It offers a low-risk retirement investment avenue for private-sector foreign employees in the UAE.
Our Commitment
We are closely monitoring these developments to provide our clients with optimal consultation and assistance.
- Tax Framework Refinements in Saudi Arabia
Major Changes
The Zakat, Tax and Customs Authority (ZATCA) is leading the way in refining tax laws, affecting Zakat, Excise law, VAT law, and Real Estate Transfer tax.
Legal Updates
These amendments have been in effect since September 12, 2023, and align with Saudi Arabia’s Vision 2030.
- Kuwait’s New Visa Renewal Directive
Immediate Effect
Foreign residents must settle all government dues before renewing their residency documentation.
Effective Date
These changes are effective as of September 10, 2023.
Conclusion
Staying ahead of these developments is crucial for smooth business operations in the Middle East. Rely on us to keep you abreast of the most pressing changes in the payroll landscape. We specialize in mitigating challenges and offering tailored solutions for your payroll needs.
For more information or to schedule a consultation, please reach out to us at sales@ops.ae