Every private company in the UAE that hires staff sits in a MOHRE category. Most owners never look at it until a work permit costs more than expected, or a PRO officer says “your company is in the third category”. By then the category is already affecting every hire.
This guide explains the MOHRE classification system for private-sector establishments in plain language. It is written for business owners, HR managers, PRO officers and employees who want to understand why one company pays less for work permits than another. All facts below come from official MOHRE announcements. Where a detail could not be confirmed on an official page, we say so instead of guessing.
Published: 22 October 2026
Quick Answer
MOHRE sorts private-sector companies into three categories: first, second and third. The system took effect on 1 June 2022 under Cabinet Resolution No. 18 of 2022. The first category is for companies that meet at least one special criterion, such as an Emiratisation rate of at least three times the target. The second category is for companies that follow the law and the diversity policy but meet no first-category criterion. The third category is for companies that breach labour rules. MOHRE states that work permit and transfer fees, valid for two years, are up to AED 250 in the first category, AED 1,200 in the second and AED 3,450 in the third, with no rebates for the third.
What Is MOHRE Company Classification?
MOHRE is the Ministry of Human Resources and Emiratisation. Its classification system rates private establishments by their compliance with the labour market rules and by their contribution to national policy, so that good employers pay less and repeat violators pay more.
According to MOHRE, the system is meant to strengthen worker rights, support entrepreneurship and small businesses, attract investment and improve transparency. MOHRE says an automated digital system assigns and changes classifications based on a company’s procedures and transactions. That means the category is not something you apply for in a form. It follows what your company actually does.
The legal base is Federal Decree-Law No. 33 of 2021 on the regulation of labour relations, together with Cabinet Resolution No. 18 of 2022 and ministerial resolutions that came after it. If your company also sells services to clients abroad, Qaspro Global explains how UAE VAT place of supply works for cross-border services.
The Three Categories
| Category | Who it is for | Work permit and transfer fees (valid two years) |
|---|---|---|
| First | Compliant companies that meet at least one special criterion | Not more than AED 250 |
| Second | Compliant companies that meet no first-category criterion | AED 1,200 |
| Third | Companies in breach of labour rules or the diversity policy | AED 3,450, with no rebates |
MOHRE notes that employing UAE and GCC nationals is exempt from these fees.
First category
A company must comply with the labour laws and meet its general obligations, and meet at least one of these criteria:
- Raise its Emiratisation rate to at least three times the required target.
- Cooperate with the Nafis programme to train at least 500 citizens a year.
- Be a venture owned by a young Emirati, under the approved standards.
- Be a training and employment centre that supports the Workforce Planning Policy.
- Operate in sectors and activities that the Council of Ministers designates.
First-category status carries significant fee exemptions. MOHRE also says that companies which achieve major results in hiring and training Emiratis through Nafis can get MOHRE fee reductions of up to 80%. A higher category can also help a company win government tenders and receive incentives, according to MOHRE.
Second category
This is where most compliant companies sit. A company belongs here when it follows the general standards, laws and decisions and the UAE’s policy on cultural and demographic diversity, but does not meet any first-category criterion. MOHRE has said that companies that meet none of the first-category criteria but comply with the law and the diversity policy are classified in the second category automatically. New establishments that comply are also placed in the second category, whatever their size.
Companies with 50 or more workers were given a transition period to adjust to the diversity policy.
Third category
A company drops to the third category when it breaches labour market policies, laws or labour rights standards, or does not commit to the diversity policy. Ministerial Resolution No. 209 of 2022 lists serious violations that lead there:
- A final court ruling confirming human trafficking.
- Contracting or recruiting a worker without a work permit.
- Submitting incorrect data, documents or information to MOHRE.
- Breaching labour rights, such as not paying wages or not meeting housing and safety standards.
- Fake Emiratisation or other serious violations.
The third category pays the highest fee and gets no rebates, so one serious breach can make every later hire more expensive.
What the Category Changes in Practice
1. Work permit and transfer fees
This is the clearest effect. A company hiring ten workers pays very different totals depending on its category. Using MOHRE’s two-year figures, the work permit fee per worker can be up to AED 250 in the first category, AED 1,200 in the second and AED 3,450 in the third. Check the current fee for the specific transaction with MOHRE before you budget, because transaction fees can differ from the permit and transfer fee MOHRE quotes in the classification announcement.
2. Bank guarantee or insurance
Under Ministerial Resolution No. 318 of 2022, private-sector establishments classified under Cabinet Resolution No. 18 of 2022 must provide one of two protections for their workers:
| Option | Details |
|---|---|
| Bank guarantee | Not less than AED 3,000 per worker, issued by a UAE-based bank, valid for one year and renewed automatically. Payable on MOHRE’s demand |
| Insurance policy | A 30-month policy priced per worker: AED 137.50 for a skilled worker, AED 180 for a low-skilled worker, AED 250 for a worker of a high-risk establishment that is not registered with the Wage Protection System |
The insurance covers up to AED 20,000. MOHRE lists the covered items as wages for the worker’s last 120 working days, end of service gratuity, the cost of returning the worker home, repatriation of the body if the worker dies, and other entitlements the employer cannot pay as decided by MOHRE or a labour court.
An employer can ask for the guarantee, or what remains of it, back when the work permit is cancelled and proof of departure is provided, when the employee dies and proof of repatriation or burial in the UAE is provided, when the employee transfers to a new employer, or in other cases where permit cancellation and payment of entitlements are proven.
The MOHRE announcement that we checked does not state how the guarantee requirement differs between categories. Do not assume a first-category company is exempt. Confirm your own position with MOHRE.
3. Quota and hiring capacity
Many articles claim that a better category gives a larger visa quota. We could not confirm a published quota table linked to the three categories on an official MOHRE page this session, so we do not give quota numbers. The quota for new permits is tied to your establishment card and the size and activity of the business. Our guide to the establishment card and visa quota explains how that works.
4. Tenders, incentives and reputation
MOHRE says a higher classification can help companies win government tenders and receive special incentives and exemptions. For a company that serves government or semi-government clients, the category is a commercial asset as well as a cost item.
How to Move to a Better Category
MOHRE’s own description is simple: promotion to the first category follows from meeting at least one first-category criterion, and demotion to the third follows from non-compliance. It adds that classification is raised automatically when companies succeed in initiatives that empower skills and talent. Practical steps follow from that:
- Keep every worker on a valid permit. Hiring or keeping a worker without a work permit is a named third-category trigger.
- Pay wages on time and through the Wage Protection System. Our guide to the Wage Protection System and Resolution 340 covers the rules.
- Submit accurate information. Wrong data or documents to MOHRE is a third-category trigger. Check every form before it goes in.
- Meet housing and safety standards where they apply to your workforce.
- Understand your Emiratisation duties. Read our guide to private-sector Emiratisation rules and plan hiring early, since Emiratisation performance is one route to the first category.
- Consider Nafis. Training at least 500 citizens a year through Nafis is a first-category criterion.
- Settle complaints properly. An unresolved labour dispute can become a compliance problem. See how to file or answer a MOHRE labour complaint.
MOHRE has not published, on the pages we reviewed, a fixed review period for re-checking a category. Treat the category as something that can change after any transaction or violation.
How to Check Your Company’s Category
We could not find an official MOHRE page that describes a dedicated public lookup tool for establishment category. Ask MOHRE through its official channels, or ask your PRO officer to confirm the current category from your company’s MOHRE account before you plan hiring or quote a client. Do not rely on a third-party website that claims to show your category.
What Employees and PRO Officers Should Check
Employees. The category is the employer’s concern, but it affects you in two ways. A third-category employer pays more for your permit, and a company with repeated violations is a risk for late wages. Check that your permit shows the correct employer, that your wages are paid through the Wage Protection System, and that your contract matches your permit. If you need your card, see how to download a labour card in the UAE. If you suspect a problem, read about the absconding report and the labour ban before you resign or leave.
PRO officers. Before submitting any permit or transfer transaction, confirm the company’s category, the expected fee and whether a guarantee or insurance policy is active. A transaction that fails late costs time. Keep a file showing the category, the guarantee or insurance details, the establishment card and the Wage Protection System status. For the worker side, see the work permit categories explained, which covers permit types and not the company rating.
Common Mistakes
- Confusing company category with work permit category. The company rating (first, second, third) is separate from worker permit types.
- Assuming the category never changes. MOHRE’s digital system updates it based on conduct.
- Budgeting with one fee for all hires. The fee depends on category.
- Ignoring the guarantee or insurance. Every classified private establishment must choose one of the two options.
- Submitting wrong documents. Incorrect data is a named third-category trigger.
- Using unofficial sources. Several websites show invented categories such as 2A, 2B and 2C. The MOHRE announcements we reviewed describe only three categories.
Frequently Asked Questions
How many MOHRE company categories are there?
Three: first, second and third. The system started on 1 June 2022 under Cabinet Resolution No. 18 of 2022.
Which companies are in the first category?
Compliant companies that meet at least one special criterion, such as an Emiratisation rate of at least three times the target, training at least 500 citizens a year through Nafis, young Emirati ownership under approved standards, being a training and employment centre, or operating in designated sectors.
What is the work permit fee for each category?
MOHRE states fees valid for two years: up to AED 250 for the first category, AED 1,200 for the second and AED 3,450 for the third, with no rebates for the third. Confirm the exact fee for your transaction with MOHRE.
What puts a company in the third category?
Breaching labour laws, labour rights standards or the diversity policy. Ministerial Resolution No. 209 of 2022 names human trafficking rulings, workers without permits, incorrect data, unpaid wages, housing or safety breaches and fake Emiratisation.
Is a bank guarantee required?
Under Ministerial Resolution No. 318 of 2022, classified private establishments provide either a bank guarantee of at least AED 3,000 per worker or an insurance policy. MOHRE’s announcement does not state an exemption by category.
How much does the insurance option cost?
MOHRE lists AED 137.50 per skilled worker, AED 180 per low-skilled worker and AED 250 for workers of high-risk establishments not registered with the Wage Protection System, for a 30-month policy covering up to AED 20,000.
Can a company move from the second to the first category?
Yes, by meeting at least one first-category criterion. MOHRE says classification is also raised automatically when companies succeed in initiatives that empower skills and talent.
Does the category change the visa quota?
We could not confirm a published quota table by category on an official MOHRE page this session, so we do not state one. Your quota depends on your establishment card and business profile.
Do new companies get a category?
MOHRE says new establishments of any size that comply with the diversity policy are placed in the second category.
Are UAE and GCC nationals covered by these fees?
MOHRE states that employing UAE and GCC nationals is exempt from the classification fees.
Related Reading
- UAE VAT Place of Supply for Services 2026 (Qaspro Global)
- UAE work permit categories 2026
- Establishment card and visa quota
- Wage Protection System and Resolution 340
- Private-sector Emiratisation rules
- MOHRE labour complaint
- Labour card download
Need Help With MOHRE Transactions?
If you want a PRO officer to confirm your company’s category, check your guarantee or insurance status, or prepare a work permit transaction, message Yalah Dubai on WhatsApp: https://wa.me/971525802100.
Sources: MOHRE announcements “New classification of private companies comes into force” (1 June 2022), “Ministry of Human Resources and Emiratisation showcases its new classification for companies” (24 May 2022) and “Resolution on Bank Guarantees and Employees’ Protection Insurance Scheme” (9 August 2022), at mohre.gov.ae; Federal Decree-Law No. 33 of 2021. Rules and fees can change, so confirm current figures with MOHRE before you act.