UAE firms can benefit from govt support to pension contribution only if data is updated

The UAE government bears 2.5 per cent of the pension contribution amount for Emirati employees in the private sector as part of the Nafis programme. However, this is done under the condition that the information and data of the employing entity and employer with the General Pension and Social Security Authority (GPSSA) are “continuously updated”.

The government covers the contribution account salary difference for insured Emiratis employed in the private sector on behalf of the entity during the first five years of their employment. For this to happen, “the entity and the employee’s data need to be up-to-date on GPSSA’s electronic records, since the information is linked to the Ministry of Human Resources and Emiratisation”, the pension authority said Monday.

The contribution rate due from insured Emiratis employed in both government and private sectors is 20 per cent. Of this, the insured individual bears 5 per cent. Of the 15 per cent due from the employing entity, 2.5 per cent is borne by the government.

The beneficiary’s age at the time of appointment should not be less than 18 years and not exceed 60. Additionally, the insured individual must be medically fit to work.

“Taking advantages of the Nafis programme requires full cooperation from both registered entities and insured Emiratis who need to ensure that monthly contributions are paid in a timely manner. Late or missing contributions result in the entity paying an additional amount of 0.1 per cent of the payable contributions per delayed day,” the GPSSA explained.

Nafis — a federal programme to increase the competitiveness of Emiratis and empower to them to get jobs in the private sector — offers benefits like salary support, pension programme, unemployment benefits and training, among others.

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