How MOHRE classifies UAE private companies under Cabinet Resolution 18/2022 — work-permit fees of AED 250 / 1,200 / 3,450 over two years by category, the four routes into the first category, and what triggers a third-category downgrade.
Every private-sector company in the UAE sits in one of three MOHRE categories, and that single letter quietly prices every work permit you issue or renew. The gap is large — a third-category company pays almost 14 times what a first-category company pays per permit. This guide explains how the classification works, what each category costs, and the official routes to a cheaper one.
What is the MOHRE company classification?
Quick answer: Under Cabinet Resolution No. 18 of 2022, in force since 1 June 2022, MOHRE classifies every UAE private-sector establishment into a first, second or third category based on its compliance with labour law, the Wages Protection System, labour-rights standards and the UAE's cultural and demographic diversity policy. The category sets the fee for every work permit you issue or renew: up to AED 250 (first), AED 1,200 (second) and AED 3,450 (third), each over two years. UAE and GCC nationals are exempt from these fees.
| Category | Work-permit fee (over 2 years) | Who lands here |
|---|---|---|
| First | Up to AED 250 | Fully compliant companies that also meet one high-value criterion (Emiratisation, Nafis training, young-Emirati-owned, or approved training centre) |
| Second | AED 1,200 | Compliant companies meeting general standards and the diversity policy — the automatic default when no first-category criterion is met |
| Third | AED 3,450 | Companies that breach labour law, labour-rights standards or the diversity policy |
Source: MOHRE — new classification of private companies and u.ae — Work permits. Fee schedules are updated periodically — confirm the current figure with MOHRE before budgeting.
How the three categories are defined
First category. Companies that comply with the laws and decisions regulating the labour market and fulfil all general obligations, and that ALSO meet at least one of these official criteria: raising the Emiratisation rate to at least three times the target, cooperating with the Nafis programme to train at least 500 citizens a year, being a venture owned by a young citizen according to approved standards, or being one of the approved training and employment centres that support the Workforce Planning Policy.
Second category. Companies that commit to the general standards, laws and regulations and to the UAE's policy on promoting cultural and demographic diversity, or that operate in sectors and activities targeted by the Council of Ministers. A compliant company that meets no first-category criterion is classified here automatically — MOHRE states most existing companies that fulfil the general commitments sit in this category.
Third category. Companies that violate Federal Decree-Law No. 33 of 2021 on labour relations, the resolutions regulating the labour market, or labour-rights standards, or that fail the diversity-policy commitment. Ministerial Resolution No. 209 of 2022 lists the specific violations, including a final human-trafficking verdict, employing someone without a work permit, submitting false data or documents to MOHRE, breaches of wage, housing or safety obligations, and fake Emiratisation.
What your category actually costs you
The classification is a per-permit multiplier on your whole expatriate workforce. An illustrative example using the published per-permit figures: a company with 20 expatriate employees pays roughly 20 × AED 1,200 ≈ AED 24,000 over two years in the second category, versus 20 × AED 3,450 ≈ AED 69,000 in the third — around AED 45,000 of avoidable government fees. These are pass-through fees, not service fees, so a downgrade is felt at the very next renewal batch. See the full Dubai government fees table for where work permits sit among your other transaction costs.
The four official routes into the first category
Per MOHRE's announcement, a compliant company reaches the first category by meeting any one of these:
- Raising its Emiratisation rate to at least three times the applicable target
- Cooperating with Nafis to train at least 500 citizens annually
- Being a venture owned by a young citizen according to approved standards
- Being an approved training and employment centre supporting the Workforce Planning Policy
MOHRE has also stated that companies with major achievements in hiring and training citizens can qualify for fee reductions of up to 80%. For most mid-market companies, the realistic lever is the Emiratisation route — see our Emiratisation compliance guide for the 2026 targets and deadlines.
How classification connects to Emiratisation
The two systems compound. Mainland companies with 50 or more employees must reach a 10% Emirati share of their skilled workforce by 31 December 2026, with monthly contributions charged per unmet position — and Emiratisation performance is simultaneously the most practical first-category criterion. Getting Emiratisation right therefore cuts your costs twice: you avoid the non-compliance contributions and you can cut every work-permit fee on your expatriate headcount. The labour card guide covers the permit itself; the sector-specific view for medical centres is in MOHRE establishment categories for clinics.
Why ZETUP PRO?
We run classification hygiene as part of the retainer: WPS compliance, renewal timelines, Emiratisation tracking and clean MOHRE filings — the things that keep you out of the third category. Scandinavian transparency, published pricing, and government fees passed through at cost with receipts.
Frequently Asked Questions
Q: What are the MOHRE company categories in the UAE? A: Three categories under Cabinet Resolution No. 18 of 2022 — first, second and third. They reflect compliance with labour law, the Wages Protection System, labour-rights standards and the UAE's cultural and demographic diversity policy, and they set your work-permit fees.
Q: How much are work permit fees per category? A: Over two years: up to AED 250 in the first category, AED 1,200 in the second, and AED 3,450 in the third. UAE and GCC nationals are exempt. Confirm current figures with MOHRE — schedules are updated periodically.
Q: How does a company reach the first category? A: Full compliance plus one of four criteria: Emiratisation at least three times the target, Nafis training of at least 500 citizens a year, being a young-Emirati-owned venture, or being an approved training and employment centre.
Q: What puts a company in the third category? A: Violations of Federal Decree-Law 33/2021 or labour-market resolutions, breaches of labour-rights standards, failing the diversity-policy commitment, or the violations listed in Ministerial Resolution 209/2022 — including working without permits, false filings, wage/housing/safety breaches and fake Emiratisation.
Q: Which category are most companies in? A: MOHRE states that most existing companies that fulfil the general commitments are in the second category. A compliant company that meets no first-category criterion is classified there automatically.
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