Key takeaways
- Every mainland employer registered with MOHRE sits in category 1, 2 or 3. Cabinet Resolution No. 18 of 2022 created the system, effective 1 June 2022. A new company starts in category 2.
- The category mainly prices your work permits. Per two-year permit or renewal, category 1 pays AED 250, category 2 pays AED 1,200 and category 3 pays AED 3,450; permits for new hires from abroad add AED 50 in every grade (Cabinet Resolution No. 37 of 2022 and MOHRE’s service card, checked 31 October 2026).
- There is no skill-level split in that fee any more. Since June 2022 the federal permit fee depends on the company’s category only. Skill level still matters for documents, guidance sessions and the diversity policy behind category 2.
- Ten listed violations push a company into category 3, for a fixed minimum stay of 3 months, 6 months or 2 years, and only after the breach is fixed and the fines are paid (Ministerial Resolution No. 209 of 2022). Repeated late salaries through WPS are one of them.
- Category 1 needs full compliance plus one achievement, such as three times the Emiratisation target, 500 Emiratis a year through Nafis, or an Emirati-owned SME backed by a youth entrepreneurship programme.
- Free zone companies are outside this fee system. Their staff visas come from the free zone authority under its own price list.
In short: As of October 2026, MOHRE grades each mainland private employer as category 1, 2 or 3 (Cabinet Resolution No. 18 of 2022), and that grade fixes the two-year work permit fee at AED 250, AED 1,200 or AED 3,450. New companies start in category 2; listed violations move a company down to category 3, and extra achievements lift it to category 1.
This guide explains the MOHRE company category from the inside: the legal tests behind each grade, the exact permit and transfer fees in each, how to find which category your establishment is in, the ten violations that cause a downgrade and how long each one lasts, the routes into category 1, what the grade does and does not change for quota, guarantees and visa costs, and four worked examples.
We read the source texts on 31 October 2026 from MOHRE’s own Resolutions and Circulars library: the classification resolution, the category 3 resolution and its violations table, the fee amendment, the 2026 Wage Protection resolution and the resolutions on SMEs, the Partners Club and inactive companies. We also checked MOHRE’s live service cards and u.ae. Most English versions on MOHRE’s site carry the note that they are not official translations; the Arabic text governs.
What is a MOHRE company category?
It is a compliance grade that the Ministry of Human Resources and Emiratisation attaches to each establishment file. The file belongs to a mainland company that employs people under the Labour Relations Law (Federal Decree-Law No. 33 of 2021). This grade lives in MOHRE’s system, not on your trade licence, and the system reads it every time you pay for a permit.
Different screens name the grades differently. The resolutions use category (1), (2) and (3). MOHRE’s service cards print “Category (1)”, “Category (2)” and “Category (3)” next to each fee. The u.ae work permits page (updated 19 October 2026) calls them classification A, B or C and gives the same AED 250 to AED 3,450 range. People also say first, second and third category. All of these describe one system.
The current framework replaced Cabinet Resolution No. 26 of 2010. As amended in 2017, that resolution had split the middle grade into four levels (2A to 2D) and priced skilled and unskilled workers separately. That older structure explains why some fee tables online still show a dozen different permit prices.
The legal tests for categories 1, 2 and 3
Cabinet Resolution No. 18 of 2022 (issued 14 March 2022) sets the tests in Articles 2 to 4. Article 7 adds the starting point: every new establishment, whatever its size, enters category 2, provided it follows the skilled workers and cultural diversity policy when it applies for permits.
| Grade | Test in the resolution | What it means in practice |
|---|---|---|
| Category 1 | 100% compliance with the Labour Relations Law, its executive regulations and MOHRE decisions on work permits, contracts for nationals and expatriates and the Wage Protection System, plus at least one of six achievements (next table) | A clean file is not enough; you need a recognised extra, and you keep the grade only while the file stays clean |
| Category 2 | The same compliance, plus adherence to the skilled manpower policy that promotes cultural and demographic diversity in the labour market | The normal grade for a company that pays on time, keeps permits valid and does not build its workforce from one nationality at low skill levels |
| Category 3 | A breach of the skilled manpower and diversity policy, or a violation of the Labour Relations Law, its regulations or ministerial decisions proven to the Ministry | Applied through the violations table in Ministerial Resolution No. 209 of 2022 and by later resolutions on wages, Emiratisation and inactive companies |
Article 6 lets MOHRE move an establishment up or down whenever it meets the requirements of another category. Article 5 also kept companies with 50 or more workers in category 2 during a transition period set with the Ministry of Finance, except for the diversity condition.
The six achievements that qualify for category 1
| # | Achievement (CR 18 of 2022, Article 2) | Who it usually fits |
|---|---|---|
| 1 | Raising the annual Emiratisation rate to at least three times the target set by Cabinet decisions | Larger employers with a real Emirati hiring programme |
| 2 | Working with Nafis to hire and train at least 500 UAE citizens a year | Banks, groups and training-heavy employers |
| 3 | Being classified as a small or medium enterprise at local or federal level, or an innovative project | Emirati-owned SMEs inside an approved youth entrepreneurship programme (see below) |
| 4 | Training and employment centres that support the cultural and demographic diversity policy | Specialist training and placement centres |
| 5 | Activities and sectors targeted by the Council of Ministers on MOHRE’s proposal | Whatever sectors the Cabinet designates; no list is attached to the resolution |
| 6 | ZONE CORP establishments | Companies under Abu Dhabi’s specialised economic zones body |
Source: Cabinet Resolution No. 18 of 2022, MOHRE Resolutions and Circulars library, read 31 October 2026.
Work permit and renewal fees by category
Cabinet Resolution No. 37 of 2022 rewrote MOHRE’s fee schedules from 1 June 2022. The category changes four lines and leaves the rest flat. MOHRE’s card “Issuance of a New Work Permit – Overseas” printed the same figures when we opened it on 31 October 2026.
| MOHRE service | Category 1 | Category 2 | Category 3 |
|---|---|---|---|
| Work permit application (new hire from abroad) | AED 50 | AED 50 | AED 50 |
| Two-year permit, first issue | AED 250 | AED 1,200 | AED 3,450 |
| Two-year permit, renewed | AED 250 | AED 1,200 | AED 3,450 |
| Permit to transfer and employ a worker from another establishment | AED 250 | AED 1,200 | AED 3,450 |
| Transfer permit application | AED 50 | AED 50 | AED 50 |
| Employment contract modification | AED 50 | AED 50 | AED 50 |
| Work mission permit | AED 250 | AED 250 | AED 250 |
| Permits for people already resident (part-time, temporary, juvenile, training, worker testing, residence visa holder) | AED 50 each, whatever the category | ||
| Golden Visa holder or self-employed permit, two years | AED 250, whatever the category | ||
Sources: Cabinet Resolution No. 37 of 2022, Schedules 1 to 3; MOHRE service card for a new overseas work permit (fees, AED 72 cap on the service centre commission, two working days), both checked 31 October 2026. MOHRE says its listed fees exclude tax and collection charges.
Not in the federal schedule. The 2020 table priced skilled and unskilled workers separately inside each level; the 2022 amendment replaced it with one figure per category. Skill level still shows up elsewhere: the overseas permit card asks for a bachelor’s degree for skill levels 1 and 2, a diploma for levels 3 and 4 and a school certificate for level 5, and the contract card sends workers at levels 5 to 9 to a guidance workshop. At the counter, those extra steps can make an unskilled worker’s receipt higher, but the MOHRE permit fee itself is the same.
The category fee is only the MOHRE slice. Immigration, medical, Emirates ID and insurance lines do not move with it. For the full bill per hire, use our employment visa cost breakdown or the employee hiring cost calculator.
How to check your company’s MOHRE category
We found no MOHRE service that issues a certificate stating the grade, so you read it from the file. These are the routes we use, quickest first.
- Read the fee on a live transaction. Start a renewal or a new permit on the MOHRE website or smart app (the authorised signatory logs in with UAE PASS) or ask a business service centre to price one. If the permit line reads 250, 1,200 or 3,450 dirhams, you are looking at category 1, 2 or 3 as the system applies it today.
- Check an old receipt. Tasheel and MOHRE receipts show the permit fee paid. Compare it with the table above; a jump between two receipts means the grade changed in between.
- Use MOHRE’s Inquiry Service. At inquiry.mohre.gov.ae, “Company Information” searches by the MOHRE company number (the establishment number) with a verification code. It looks up an establishment by that number, but on 31 October 2026 we could not confirm that the result prints the category, because the search needs a real company number.
- Call MOHRE on 600590000. The call centre answers status questions around the clock. Have the company number and the licence number ready.
- Ask why, not only what. If the grade is 3, ask which violation triggered it and the date. The date matters, because the minimum stay in category 3 runs from it.
You need the MOHRE company number for every route. It is on the establishment card and on any MOHRE transaction receipt. If you have never opened a MOHRE file, you have no category yet; our guide to MOHRE covers registration and the channels.
What pushes a company into category 3?
Ministerial Resolution No. 209 of 2022 (issued 18 April 2022, effective 1 June 2022) attaches a table of ten violations. Each one downgrades the company either automatically, when the fine is entered in the system, or by a decision of the Undersecretary. Each carries a minimum stay.
| Violation (MR 209 of 2022 schedule) | How the downgrade happens | Minimum time in category 3 |
|---|---|---|
| Final court judgment for a human trafficking crime | Undersecretary decision | 2 years |
| Employing a worker without a permit, not employing a worker you got a permit for, or letting your worker work for others without a proper change of status | System, with the fine | 3 months |
| Giving MOHRE incorrect data, false documents or false information | System, with the fine | 3 months |
| Running a mediation or temporary recruitment business without a MOHRE licence | System, with the fine | 3 months |
| Breaches of legal duties that made workers stop work more than twice in one calendar year, left unfixed after warnings | Undersecretary decision | 6 months |
| Not paying wages through WPS in the cases set by the wage resolution in force | System, with the fine | 3 months |
| Serious housing, health or safety breaches twice in one calendar year despite warnings | System, with the fine | 3 months |
| Serious work injuries causing disability or death because safety rules were not applied | Undersecretary decision | 3 months |
| False Emiratisation | System, with the fine | 3 months |
| Misusing electronic access to MOHRE systems in a way that disrupts the Ministry’s work | Undersecretary decision | 6 months |
Later resolutions that also lead to category 3
- Repeated late salaries. Since 1 June 2026, pay for each month falls due on the first day of the next month under Ministerial Resolution No. 340 of 2026, which treats a company as compliant when at least 85% of the wages due are transferred by then. From day 5 after the due date MOHRE stops new permits. On day 11, a company that repeats the delay within six months is fined and moved to the third category. Our WPS guide covers the payroll side.
- Missing Emiratisation targets for two years running. Ministerial Resolution No. 279 of 2022 reclassifies a company to category 3 when it fails the required rates for two consecutive years. Targets and contributions are in our Emiratisation rules guide.
- A company with staff but no real business. Under Ministerial Resolution No. 318 of 2024, when inspection shows that an establishment does not carry on its licensed activity but has workers registered, MOHRE suspends its permits and services, fines it and reclassifies it to category 3. The owner’s other sole companies are suspended too, and the owner cannot register a new establishment with MOHRE until the case is settled.
A downgrade often travels with other measures: suspended permits, a frozen e-quota or a labour ban on the worker side. Those are separate decisions with their own rules; the labour ban guide explains the worker side.
How to move up: leaving category 3 and reaching category 1
Getting out of category 3
Article 2 of Ministerial Resolution No. 209 of 2022 sets three conditions, and all three must be met before the company is placed back in the grade its record deserves:
- the minimum stay for that violation has passed (3 months, 6 months or 2 years, as in the table above);
- the violation itself has been fixed, for example arrears paid through WPS, permits issued or cancelled, housing corrected, false data replaced; and
- every fine arising from it has been settled.
The Minister may also keep a company in category 3 for longer when the breach is grave or repeated. Paying the fine alone does not restart the clock, and fixing the cause without paying the fine does not either. Keep the proof of each step, because the Ministry reviews the file, not your explanation.
Routes into category 1
| Route | Who qualifies | How long category 1 lasts | Source |
|---|---|---|---|
| Emirati SME in a youth entrepreneurship programme | Company owned and run by a UAE national (or with a national manager), member of an approved youth entrepreneurship support institution, small (up to 15 workers) or medium (16 to 50); the owner may not hold more than five such enterprises or any violating establishment | 5 years from the first licence; lost on wage default, fictitious employment, unreported sale or more than 50 workers | Ministerial Resolution No. 251 of 2022 |
| Emiratisation Partners Club | Full compliance plus Emiratisation at three times the annual target with at least 30 additional nationals hired, or at least 500 nationals trained and recruited a year with Nafis | 1 year, with fee benefits up to AED 1.5 million; a member that fails the criteria repays the fee difference | Ministerial Resolution No. 438 of 2024 |
| Emirates Labour Market Award winners | Establishments that win the award | 1 year or until the benefit cap: AED 1.5 million (first), AED 1 million (second), AED 500,000 (third) | Ministerial Resolution No. 439 of 2024 |
| Other CR 18 achievements | Training and employment centres, Cabinet-targeted sectors, ZONE CORP establishments | While the criteria and full compliance continue | Cabinet Resolution No. 18 of 2022 |
For most expatriate-owned trading or service companies, none of these routes is realistic, so the practical goal is to stay in category 2 and never slip. That is mostly payroll discipline, permit renewals on time and a workforce plan that does not rely on one nationality at the lowest skill levels.
What the category changes, and what it does not
| Item | Does the category change it? | What the rules say |
|---|---|---|
| Work permit, renewal and transfer fees | Yes | AED 250 / 1,200 / 3,450 per two-year permit (CR 37 of 2022) |
| Number of permits (e-quota) | Not directly | Cabinet Resolution No. 203 of 2022 gives new establishments an automatic quota of 3 permits (20 in high-priority sectors, 6 for listed activities) and existing ones 5% to 10% of their workforce, up to 100. The automatic quota is withdrawn for any company that breaks the labour law, which in practice overlaps with a downgrade. See our company visa quota guide. |
| Worker protection guarantee | No | Article 8 of CR 18 of 2022 requires every employer to secure each worker, either through insurance or with a bank guarantee of AED 3,000. MOHRE’s high-risk employers have no choice: they insure everyone. |
| High-risk status | Separate list | Cabinet Resolution No. 208 of 2022 marks a company high-risk for delayed wages (50+ workers), more than one stoppage or collective dispute in 12 months, or 30% thresholds for court-referred complaints, expired permits or work stoppage. It is lifted once the situation is regularised. |
| Immigration, medical and Emirates ID fees | No | GDRFA or ICP, health authority and ICP lines are the same in every category |
| Fines for late renewals or contracts | No | Set by Cabinet Resolution No. 21 of 2020 as amended, whatever the grade |
Insurance premiums, guarantee refunds and the full fee list are covered in our UAE government fees list; the permit types that use flat fees are explained in our work permit types guide.
Worked cost examples (fictional)
These four companies are invented to show the arithmetic. They are not clients. Figures are MOHRE federal lines only, before VAT, collection charges, centre commissions and all non-MOHRE costs.
(a) A new Dubai consultancy hiring three people from abroad
New establishments start in category 2. Each hire costs AED 50 for the application and AED 1,200 for the two-year permit: AED 1,250 per person, or AED 3,750 for three. The same three hires in category 3 would cost AED 10,500.
(b) A contracting firm downgraded after late salaries
The firm paid salaries late twice within six months in 2026, so on day 11 of the second delay it moved to category 3 under MR 340 of 2026 and MR 209 of 2022. Twelve permits fall due for renewal during the three months it must stay there. Renewing them in category 3 costs 12 x AED 3,450 = AED 41,400, against 12 x AED 1,200 = AED 14,400 in category 2: AED 27,000 more. If the arrears are paid and the fine settled, waiting until the firm is back in category 2 before renewing would save that difference, as long as no permit passes its renewal deadline in the meantime.
(c) An Emirati-owned café supported by a youth fund
The owner is a UAE national, the business is a member of an approved youth entrepreneurship institution and it has 9 workers. Under MR 251 of 2022 it sits in category 1 for five years from its first licence. Eight new hires cost 8 x (AED 50 + AED 250) = AED 2,400 in permit fees. In category 2 they would cost AED 10,000.
(d) Hiring someone who already works for another company
A category 2 employer takes on an engineer working for another UAE company. MOHRE charges the transfer permit application (AED 50) and the permit to transfer and employ (AED 1,200), so AED 1,250. The receiving employer’s grade decides the price, not the previous employer’s.
| Example | Category 1 | Category 2 | Category 3 |
|---|---|---|---|
| (a) 3 new hires from abroad | AED 900 | AED 3,750 | AED 10,500 |
| (b) 12 renewals | AED 3,000 | AED 14,400 | AED 41,400 |
| (c) 8 new hires from abroad | AED 2,400 | AED 10,000 | AED 28,000 |
| (d) 1 transfer from another company | AED 300 | AED 1,250 | AED 3,500 |
Free zone companies and the MOHRE category
The 1, 2, 3 grades and their fees attach to MOHRE work permits issued to establishments registered with MOHRE. A company licensed in a free zone gets its employees’ visas through the free zone authority instead. Meydan Free Zone puts it plainly on its work permits page (updated 16 October 2026): the free zone authority that licenses the company issues the employment visa for its staff. The visa bill then follows the zone’s own fee schedule, and no MOHRE category line appears on it.
Two exceptions are worth knowing. A free zone company that also holds a mainland licence or branch, or operates in the emirate under a permit, may hire mainland staff through MOHRE, and that establishment file gets its own grade; our guide to the free zone mainland operating permit covers that setup.
For zone-specific visa and card fees, see our pages on DMCC PRO services, Meydan Free Zone PRO services and Expo City Dubai free zone PRO services.
Mistakes we see with MOHRE categories
| Mistake | What happens | Better approach |
|---|---|---|
| Assuming the grade is permanent | One late payroll in 2026 can be the second strike within six months | Pay on the 1st and confirm the WPS file was accepted, not just sent |
| Renewing everything the day after a downgrade | Every renewal is billed at AED 3,450 | Check deadlines; fix and settle first, then renew what can wait, without missing a renewal date |
| Keeping workers on a company that has stopped trading | MR 318 of 2024: category 3, suspended services, the owner’s other companies suspended | Cancel permits properly or close the file before activity stops |
| Registering Emiratis on paper | False Emiratisation is a category 3 trigger and carries heavy fines | Real roles, real pay through WPS, as set out in MR 663 of 2022 |
| Comparing a counter receipt with the official fee | The receipt is higher and looks like a wrong category | Separate the MOHRE permit line from typing, commission, insurance and VAT |
How MIRDXB PRO helps
We read your MOHRE file, find the violation or missing step behind a downgrade, prepare the corrections (WPS records, permit cancellations or renewals, contract changes) and submit them through MOHRE and the business service centres. For ongoing work, our monthly PRO plans track every permit expiry. Published prices on our fees page include opening a MOHRE company file at AED 400 and a labour contract change at AED 250, and the monthly plans start at AED 799 (see corporate PRO services). Category reviews and clean-up work are priced as a fixed quote on WhatsApp once we know the file.
Our limits. We run a private PRO and visa practice from Al Barsha 1, Dubai. We are not MOHRE and we cannot change a category ourselves; the Ministry decides every classification. We prepare applications and submit them through the official channels on your behalf.
Frequently asked questions
What is a MOHRE company category?
It is the compliance grade MOHRE gives each mainland employer file under Cabinet Resolution No. 18 of 2022, in force since 1 June 2022. There are three grades. The grade sets the price of every two-year work permit, renewal and transfer permit the company pays for.
What are MOHRE categories 1, 2 and 3?
Category 1 is a fully compliant company with an extra achievement such as high Emiratisation or Nafis training. Category 2 is a compliant company that follows the skilled workforce and diversity policy, and it is where new companies start. Category 3 is a company with a listed violation.
How much is the work permit fee in each MOHRE category?
Per two-year permit or renewal: category 1 pays AED 250, category 2 pays AED 1,200 and category 3 pays AED 3,450. Hiring from abroad adds an AED 50 application fee whatever the grade. These are federal fees before VAT and collection charges.
Does the work permit fee depend on the skill level of the worker?
No. Since 1 June 2022 the federal permit fee depends only on the company category. Skill level decides which certificates are needed and whether the worker attends a guidance session, so counter receipts can differ, but the MOHRE permit line does not.
How do I check my company category in MOHRE?
Start or price a permit renewal on the MOHRE website or app, or at a business service centre, and read the permit fee line, which reveals the grade the system applies. Older receipts show past grades. The MOHRE call centre on 600590000 can confirm it with your company number.
Which category is a new company placed in?
Category 2. Article 7 of Cabinet Resolution No. 18 of 2022 places every new establishment, whatever its size, in category 2, provided it follows the skilled workers and cultural diversity policy when it applies for permits. A listed violation can move it to category 3.
What does category 3 mean for a company?
It means MOHRE has recorded one of the violations in Ministerial Resolution No. 209 of 2022, such as unpaid WPS salaries, workers without permits, false data or false Emiratisation. Every permit, renewal and transfer then costs AED 3,450, and other penalties may apply on top.
How long does a company stay in category 3?
At least 3 months for most violations, 6 months for repeated work stoppages or misuse of MOHRE systems, and 2 years after a human trafficking judgment. The company returns only after that period, once the breach is fixed and all fines are paid. The Minister can extend the stay.
Can late salary payments move my company to category 3?
Yes. Under Ministerial Resolution No. 340 of 2026, salaries are due on the first of each month. New permits are stopped from day 5 of a delay, and on day 11 a company that repeats the delay within six months is fined and moved to the third category.
How can a company upgrade to MOHRE category 1?
By staying fully compliant and meeting one listed achievement: Emiratisation at three times the target, 500 Emiratis a year with Nafis, Emirati-owned SME status in an approved youth programme, membership of the Emiratisation Partners Club, an Emirates Labour Market Award, or a Cabinet-targeted sector.
Does the MOHRE category affect the bank guarantee or visa quota?
Not directly. Every employer provides an AED 3,000 guarantee or insurance per worker whatever its grade, and quota rules come from a separate resolution. The violations that cause category 3 can, however, freeze new permits and remove the automatic e-quota.
Do MOHRE categories apply to free zone companies?
No. Free zone companies get their staff visas from the free zone authority under its own fee schedule, so the MOHRE category fee does not appear on their bills. A free zone company that also runs a mainland establishment has a separate MOHRE file for it.
- MOHRE: Resolutions and Circulars library (classification, fee, WPS, SME, Partners Club and inactive company resolutions)
- Cabinet Resolution No. 18 of 2022 on the classification of private sector establishments (PDF, MOHRE)
- Resolution No. 209 of 2022 on classification under category 3, with the violations table (PDF, MOHRE)
- Cabinet Resolution No. 37 of 2022, fee schedules by category (PDF, MOHRE)
- Ministerial Resolution No. 340 of 2026: salary due date and delay measures under WPS (PDF, MOHRE)
- Ministerial Resolution No. 318 of 2024 on establishments not conducting their licensed activity (PDF, MOHRE)
- Ministerial Resolution No. 251 of 2022 on incentives for SMEs in youth entrepreneurship programmes (PDF, MOHRE)
- Ministerial Resolution No. 438 of 2024 on the Emiratisation Partners Club (PDF, MOHRE)
- MOHRE service card: Issuance of a New Work Permit – Overseas (fees by category, skill level certificates)
- u.ae: Work permits (AED 250 to AED 3,450 by classification A, B or C; updated 19 October 2026)
Please note. This guide summarises MOHRE’s establishment classification rules and the related fee schedules as published in MOHRE’s resolutions library and service cards and on u.ae, read on 31 October 2026. Most English texts on MOHRE’s site are unofficial translations, and the Arabic originals prevail. The four example companies are invented to show the arithmetic, and the fee figures exclude VAT, collection charges and centre commissions. Classifications are decided by the Ministry on each file, and rules change, so confirm the current position before acting. This page is general information, not legal advice. MIRDXB PRO, based in Al Barsha 1, Dubai, is a private company handling PRO and visa work; it is not MOHRE or any government body and is not a partner or agent of the Ministry.
