The UAE government has announced that the cost of issuing or renewing a work permit ranges from AED 250 to AED 3,450, with the exact fee determined by how well a company complies with local labour laws and worker protections. The framework, released on 29 August 2026, assigns employers a classification of A, B, or C, directly linking permit costs to their compliance record.
Companies with a history of violations are placed in the lowest category, Category C, and face the highest fees. In contrast, employers that consistently meet regulatory standards benefit from reduced administrative costs. The tiered pricing structure is designed to incentivise fair labour practices and penalise non-compliance.
How Company Classification Is Determined
The classification system is administered by the UAE's Ministry of Human Resources and Emiratisation (MoHRE). It evaluates a company's track record across several key areas, including compliance with UAE labour law, participation in the Wages Protection System, adherence to MoHRE resolutions and directives, respect for workers' rights, and commitment to promoting cultural and demographic diversity in the workplace.
Employers that meet these standards consistently are placed in higher categories, which translates to lower permit costs. Those that fall short—particularly companies with documented violations or a pattern of non-compliance—are assigned to Category C, which carries the steepest fees. The classification is not static; a company's rating can change over time based on its ongoing compliance record.
What This Means for Employers
The tiered structure effectively turns work permit pricing into an incentive mechanism. Companies that invest in fair labour practices and maintain clean compliance records benefit from lower administrative costs each time they seek to hire or retain foreign workers. Those with poor records face a financial penalty, making it more expensive to operate with a substandard compliance history.
For workers and job seekers considering employment in the UAE, the classification of a prospective employer now carries practical significance beyond workplace conditions. A company's rating under this system can signal how seriously it takes its obligations under UAE law, offering an additional layer of transparency for those evaluating job offers in the country. The announcement was first reported by Legit.ng, with the fee structure and classification details attributed to the UAE government's official release.
