UAE Labour / Employment LawCabinet Resolution No. (42) of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees

Article (3) Scope of Application 1. The provisions of this Resolution shall apply to the Employees serving at the Federal Entities governed by the provisions of Federal Decree-Law No. (49) of 2022, on Human Resources of the Federal Government, of different job grades, employment patterns and types of work. 2. The following categories shall be excluded from the application of the provisions of this Resolution: a. Employees on probation; b. Employees appointed on a temporary employment basis if the term of the contract is less than (3) three months; c. Employees whose service has terminated for whatever reason, except for Employees whose service has terminated for reaching the age of retirement; d. Outsourced Employees; e. Members of teams and committees to whom financial allowances are paid out under any legislation in force; and f. The entities that have their own rewards and incentives policies and regulations.

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Article (5) General Provisions In order for any of the financial incentives set forth herein to be disbursed, the following requirements shall be fulfilled: 1. Appropriations must be available in the approved budget of the Federal Entities. 2. No single employee may concurrently benefit from both an annual performance bonus and any type of promotion, adjustment of special benefits or benefits of experts and consultants during the same year. A period of not less than (12) twelve months must have lapsed following the last promotion or adjustment of benefits or annual performance bonus received by the employee. 3. An annual performance bonus and any other bonus under the categories set forth in the present Scheme may be concurrently combined, without prejudice to the standards and conditions stipulated for each category. 4. An Employee may be granted more than one bonus or in-kind rewards, as per the categories described hereunder, within one year, except for annual performance bonuses that are granted once a year, taking into account the conditions related thereto. 5. The total value of all categories of bonuses, including an annual performance bonus, that an Employee can obtain in one year under the provisions of the present Resolution, must not exceed (AED 100,000) one hundred thousand dirhams.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 4 6. The Employee must not have been subject to an administrative sanction during the year of nomination for any of the bonuses set forth in this Resolution, unless the legal effect thereof has been eliminated. 7. The Committee may add other standards or requirements, as required by the interest of work. 8. The Chairman of the Federal Entity may grant UAE national Employees, whose service has terminated for reaching the age of retirement, pursuant to Federal Law No. (7) of 1999, on Pensions and Social Insurances, as amended, and Federal Decree-Law No. (57) of 2023, on Pensions and Social Insurances, a cash or in-kind reward; provided that the value of the reward does not exceed (AED 50,000) fifty thousand dirhams, except for employees whose service has terminated by retirement and who are paid financial rewards under any other incentive policies or programs. 9. The Federal Entity may submit proposals to add extra categories or types of rewards by submitting them as a recommendation to the Federal Authority for Government Human Resources for consideration and decision, and then be submitted by FAHR for approval by the Cabinet.

Article (6) Categories of Rewards and Incentives The Employee, work team members or participant from outside the Federal Entity may be granted one of the following Rewards and Incentives: 1. Annual Performance Bonus: Associated with the results of the annual performance management system and the levels of competency and productivity, and shall be granted as set out in Annex (1) hereunder. 2. Bonus for Outstanding Achievements: It includes categories to be honored for value-added achievements at the level of the Federal Entity (beyond the job duties and responsibilities), and shall be granted as set out in Annex (1) hereunder, including the following categories: a. Exceptional Teams: It is granted to team members who have successfully achieved projects or exceptional achievements with a tangible positive effect,

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 5 whether such projects or achievements of the work team are at the Government level or at the Federal Entity’s level. b. Achievement Makers: It is granted to Employees who demonstrate outstanding or extraordinary efforts in implementing functions that support government orientations or the Entity’s strategy, raising the Entity’s efficiency or improving the services provided to relevant categories. c. Innovation Pioneers: It is granted to Employees or work team members who introduce creative ideas, in accordance with the standards of the proposal system adopted by the Federal Entity; provided that the introduced innovations contribute to achieving tangible results in developing government operations and services, improving levels of performance, productivity and effectiveness, realizing additional revenues, reducing the Entity’s expenses, designing initiatives that have an effect on the Entity or the Government or other priorities set by the Entity. d. Top Competitors: It is granted to Employees or work team members who won or took first ranks of competitions at the Federal Entity, in accordance with the mechanisms adopted for competitions or awards. e. Immediate Honoring: Immediate recognition given to Employees, upon nomination by the Direct Superior, for their valuable contribution to the Entity’s area of work, or for taking initiative to efficiently and effectively implement or achieve an achievement beyond the scope of job duties. 3. Reward for Impressive Patriotic Accomplishments: It includes categories honored for rooting the values of national identity and consolidating the State’s reputation and enhancing its competitiveness and global leadership. It is granted in accordance with Annex (1) hereunder, including the following categories: a. Patriotic Accomplishment: It is granted to employees or work team members who enhanced the UAE’s reputation worldwide through their notable contribution to making a tangible positive effect on the State’s position worldwide, achieving advanced results for the State in international competitiveness reports, enhancing the values and culture of the UAE worldwide, obtaining international recognition, winning elections or voting for chairing international committees or

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 6 winning regional or international competitions and other relevant fields as determined by the Entity. b. Social Accomplishments: It is granted to Employees or work team members who have contributions or voluntary work that have a positive effect on the society or environment.

Article (7) Functions and Responsibilities By virtue of a resolution of the Chairman of the Federal Entity, a Rewards and Incentives Committee shall be formed in each Federal Entity, under the chairmanship of the Undersecretary or the Director-General or the like, and comprising members of the Entity, and a rapporteur for the Committee, in order to implement the provisions of this Resolution in accordance with the following functions and responsibilities: The Entity Functions & Responsibilities The Chairman or his delegate 1. Approving annual budgets of the Rewards and Incentives Scheme, in accordance with the mechanisms and procedures approved by the Federal Government. 2. Approving lists of Employees who are entitled to rewards, and the value of rewards and incentives for each one. The Rewards and Incentives Committee 1. Reviewing the annual budget of the Scheme at the level of the Federal Entity, and proposing funds required to be allocated within the budget of the Federal Entity. 2. Complying and following the procedures set out in the framework of governance and procedures for granting rewards and incentives, as set out in this Resolution, attached as Annex (2) hereunder.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 7 3. Examining applications, approving the list of Employees and the values of rewards and submitting them to the Chairman of the Entity or his delegate for approval, taking into account that the maximum total value of all categories of rewards, including the annual performance bonus, that an employee can obtain a year under the provisions of this Resolution, an amount of (AED 100,000) one hundred thousand dirhams. 4. Submitting meeting minutes of the Committee and having the same approved by the chairman of the Committee. 5. Drawing up regular reports on the results of applying the Rewards and Incentives Scheme to the Federal Entity. The HR Department 1. Reviewing nomination applications in accordance with the standards and conditions set out in this Resolution, making any comments on the same and submitting them to the Committee for consideration, taking into account that the maximum total value of all categories of rewards, including the annual performance bonus, which an employee can obtain a year under the provisions of this Resolution, an amount of (AED 100,000) one hundred thousand dirhams. 2. Coordinating with the department of finance to ensure that the necessary financial allocations are available before submitting any requests or recommendations to the Committee.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 8 3. Regular review of the Entity’s mechanisms for granting rewards and incentives, and evaluating the effectiveness of implementing the Scheme. 4. Maintaining all records and documents (decisions of payment of rewards) related to the nominations and the justifications of each one. The Department of Finance 1. Ensuring the availability of financial allocations necessary for paying out rewards and incentives, in accordance with the approved Federal Entity’s budget. 2. Paying out rewards and giving in-kind rewards upon the issued resolutions and the approved financial allocations. 3. Making sure that the maximum total value of all categories of rewards, including the annual performance bonus, that an employee can obtain a year under the provisions of this Resolution, an amount of (AED 100,000) one hundred thousand dirhams.

Article (8) Submission of Annual Reports on the Scheme Application Results The Rewards and Incentives Committee of the Federal Entities shall submit reports, per annum or upon request, to the Federal Authority for Government Human Resources on the results of implementing the Rewards and Incentives Scheme at the level of the Federal Entity. The reports shall include clear information on Employees and work teams and their members who benefit from this Resolution, in accordance with the categories and conditions set forth therein, along with the significant observations and justifications supporting the same.

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Article (10) This Resolution shall be published in the Official Gazette, and shall enter into force as of the day following the date of its issuance Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: Dated: 6th Shawwal 1445 AH Corresponding to: 15th April 2024 AD

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 10 Annex (1) to Cabinet Resolution No. (42) of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees First: Annual Performance Bonuses: Bonus Name Annual Bonus Description The Federal Entity may grant an annual bonus to Employees who have distinguished themselves in achieving the targets and functions assigned to them in accordance with the performance management system, and who have scored (3) or higher or the equivalent grade in the performance appraisal, in accordance with the allocated budget of the Entity for such bonus. Bonus Value • Performance appraisal (5) or the equivalent – up to 200% of the total salary. • Performance appraisal (4) or the equivalent – up to 150% of the total salary. • Performance appraisal (3) or the equivalent – up to 100% of the total salary. Provided that the maximum total value of all categories of bonuses (all types of rewards, including bonuses, in-kind rewards and the annual performance bonus), which can be granted to the Employee under the provisions of this Resolution, an amount of (AED 100,000) one hundred thousand dirhams. Conditions & Controls 1. The Employee must have completed at least one year of service at the Federal Entity. 2. The Employee must be on duty from 1st January to 31st December. 3. The Employee must have efficiently and effectively achieved his job targets according to the performance management

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 11 system, and must have scored (3) or higher or the equivalent grade, which makes the Employee eligible for the annual bonus, subject to the approval of the Chairman of the Entity and the budget allocated for such bonus. 4. The Chairman of the Entity may add other standards or requirements for granting the annual performance bonus, as required by the interest of work. 5. The total salary includes the basic salary, bonuses, allowances set forth in the approved grading and salary scale, and does not include non-recurring financial elements, i.e. housing allowance, travel allowance, assignment allowance … etc.. 6. If the Employee’s service terminates before 31st March, the Employee shall not be entitled to an annual bonus. Frequency To be granted one time and may not be recurred in one year. Beneficiaries Employees of the Entity who are governed by the performance management system of the Federal Entity.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 12 Second: Bonuses for Outstanding Achievements: Category/Bonus Name Exceptional Teams Description It is granted to work team members who have successfully achieved projects or exceptional achievements with a tangible positive effect, whether such projects or achievements of the work team are at the Government level or at the Federal Entity’s level. Bonus Value Up to (AED 20,000) twenty thousand dirhams for each team member. Conditions & Controls The Employee must have completed at least one year of service at the Federal Entity. Frequency To be granted one time, and may be granted up to (3) three times a year; provided that the bonus amount does not exceed (AED 60,000) sixty thousand dirhams a year for each team member. Beneficiaries Team members. Category/Bonus Name Achievement Makers Description It is granted to Employees who demonstrate outstanding or extraordinary efforts in implementing tasks that support government orientations or the Entity’s strategy, raising the Entity’s efficiency or improving the services provided to relevant categories. Bonus Value Up to (AED 10,000) ten thousand dirhams. Conditions & Controls The Employee must have completed at least one year of service at the Federal Entity. Frequency To be granted one time for each achievement, and may be granted up to (3) three times a year, provided that the bonus

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 13 amount does not exceed (AED 30,000) thirty thousand dirhams a year. Beneficiaries The Employee. Category/Bonus Name Innovation Pioneers Description It is granted to Employees or work team members who introduce creative ideas, in accordance with the standards of the proposal system adopted by the Federal Entity; provided that the introduced innovations contribute to achieving tangible results in developing government operations and services, improving levels of performance, productivity and effectiveness, realizing extra revenues, reducing the Entity’s expenses, designing initiatives that have an effect on the Entity or the government or other priorities as set by the Entity. Bonus Value Up to (AED 7,000) seven thousand dirhams. Conditions & Controls The innovation must be documented in the regulations of the Federal Entity and the application thereof must be approved. Frequency To be granted one time for each proposal/innovation, and may be granted up to (3) three times a year; provided that the bonus amount for each Employee/member does not exceed (AED 21,000) twenty one thousand dirhams a year. Beneficiaries The Employee or team members. Category/Bonus Name Top Competitors Description It is granted to Employees or work team members who won or took first ranks in competitions at the Federal Entity, in accordance with the mechanisms approved for competitions or awards.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 14 Bonus Value Up to (AED 10,000) ten thousand dirhams, or per each team member. Conditions & Controls 1. The competition (competitions or awards) must have clear mechanisms and standards. 2. The winner must have fulfilled all terms and conditions of the competition. Frequency To be granted one time for the same achievement, and may be granted up to (3) three times a year; provided that the bonus amount for each Employee/member does not exceed (AED 30,000) thirty thousand dirhams a year. Beneficiaries The Employee or team members. Category/Bonus Name Immediate Honoring Description Immediate recognition given to Employees, upon nomination by the Direct Superior, for their valuable contribution to the Entity’s area of work, or for taking initiative to implement or efficiently and effectively achieve an achievement beyond the scope of job duties. Bonus Value A bonus or in-kind reward up to (AED 1,000) for the Employee. Conditions & Controls 1. The Employee may not be granted the bonus/reward for more than one time in the same month. 2. The Committee shall set the controls for granting such bonus and shall so notify officials of the Entity. 3. When the Direct Superior desires to grant a bonus, he is required to send an application and show the justifications to the HR department, and the department of finance shall pay out the bonus according to the approved mechanisms and controls after being approved by the undersecretary or his delegate.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 15 4. Departments of finance are required to reflect the controls as per the mechanisms approved in the financial procedures. Frequency To be granted one time for the same achievement, and may be granted up to (3) three times a year; provided that the bonus amount per Employee does not exceed (AED 3,000) three thousand dirhams a year. Beneficiaries Employees of, or below the fifth job grade or the equivalent. Third: Bonuses for Impressive Patriotic Accomplishments: Category/Bonus Name Patriotic Accomplishment Description It is granted to Employees or work team members who enhanced the UAE’s reputation worldwide through their notable contributions to making a tangible positive effect on the State’s position worldwide, achieving advanced results for the State in an international competitiveness report, enhancing the values and culture of the UAE worldwide, obtaining international recognition, winning elections or voting for chairing international committees, or winning regional or international competitions and other relevant fields determined by the Entity. Bonus Value Up to (AED 20,000) twenty thousand dirhams per Employee or working team member. Conditions & Controls The Employee or teams must have the documents and evidence that support the nomination. Frequency To be granted one time, and may be granted up to (3) three times a year; provided that the bonus amount per Employee/member does not exceed (AED 60,000) sixty thousand dirhams a year.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 16 Beneficiaries Employees or team members. Category/Bonus Name Social Accomplishment Description It is granted to Employees or work team members who have contributions or voluntary work that have a positive effect on the society or environment, including without limitation: • Self-initiative to volunteer in serving the society; • Making contributions that enhance the quality of life; and • Making a positive change and influencing the society. Bonus Value Up to (AED 3,000) three thousand dirhams per Employee or team member. Conditions & Controls 1. The Employee must have completed at least one year of service at the Federal Entity; 2. The Employee or work teams must have the documents proving hours or certificates of voluntarism; and 3. The Employee must have contributed to voluntary or social activities beyond the scope of duties at the Entity. Frequency To be granted one time, and may be granted up to (3) three times a year; provided that the bonus amount per Employee/member does not exceed (AED 9,000) nine thousand dirhams a year. Beneficiaries The Employee or team members.

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 17 Annex (2) to Cabinet Resolution No. (42) of 2024 on the Rewards and Incentives Scheme for Federal Government Employee Governance Framework and Procedures for Granting Rewards and Incentives at Federal Entities Nomination The nomination for any type of bonuses/rewards may be made to the Employee or work teams directly by self- nomination, Direct Superior or colleagues at the Federal Entity. An exception to the above is the annual bonus, which is based on the Employee’s performance appraisal according to the performance management system of the Entity. All nominations shall be submitted to the HR department of the Entity. Submitting Supporting Documents A nominee for a bonus shall submit such data that supports his nomination, in accordance with the criteria described for each category in Annex (1), attached herewith, including quantitative and qualitative indicators that support the description of each category. Budgetary Check The Rewards and Incentives Committee of the Entity must ensure the availability of budgets allocated for paying out bonuses, in coordination with the finance department and in accordance with the appropriations approved for the Entity. Data Validation The Rewards and Incentives Committee shall verify all nominations received for the honoring category, in accordance with the Rewards and Incentives Scheme, and shall verify the supporting evidence and data provided by the nominees and verify their authenticity, in coordination with the HR department. Evaluation & Selection Based on the data validation results, the Rewards and Incentives Committee shall select nominees according to the standards, conditions and controls for each category, and shall document them in the decisions of paying out allocations, and shall submit the lists/decisions to the Chairman of the Entity or his delegate for approval. Nomination Submitting Supporting Documents Budgetary Check Data Validation Evaluation & Selection Honoring

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Cabinet Resolution of 2024 Concerning the Rewards and Incentives Scheme for Federal Government Employees 18 Honoring The HR department shall coordinate with the department of finance to pay out the amounts, then, a list of Employees or teams whose bonuses have been approved shall be announced, as per the announcement mechanisms adopted by each Entity.

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