Non-compliance will lead to extra charge of Dh 200 for each day delayed, multiplied by number of insured employees in the entity
The General Pension and Social Security Authority (GPSSA) said that employers subject to the provisions of Federal Law No.57 of 2023 regarding pension and social security are required to register their Emirati employees within 30 days of their employment.
Entities must provide the GPSSA with the names of insured Emiratis whose service periods end within 15 days. Violating this provision will result in an additional charge of Dh200 for each day delayed, multiplied by the number of insured employees working in the entity.
GPSSA added, "Contribution payments are the employer's responsibility, which is why statements, data or documents, including the insured's salary details, must be sent to the GPSSA by the entity within ten days to calculate the prearranged contributions as per the provisions of the federal law. In the event of a delay, the entity pays an additional Dh100 for each unsettled day, multiplied by the number of insured individuals."
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In accordance with Federal Law No.57 of 2023, contributions must be paid starting from the date the employee has joined the entity, even if that means him/her joining during the middle of the month or leaving the entity before the month is over.
Contribution payments must be transferred at the beginning of each month, with a maximum grace period of 15 days. The amount is non-refundable. In the event of late payments, the employer is obliged to pay an additional 0.1% of the contributions due for each day delayed without prior notice or warning. The additional amount must not exceed the value of the contribution due.
Contributions must be paid based on real salaries, meaning the insured's payments are paid based on the contribution account salary. It is important to note that contributions are paid for employees in the private sector according to the January contribution account salary of each year. If the employee joins after January, contributions are calculated based on the salary of the month by which he/she joined the entity until the following January.
Contributions for government sector employees are calculated based on the actual contribution account salary for each month.
Non-payment of contributions on actual salaries requires an employer to pay an additional 10% of the value of contributions due without warning or prior notification. GPSSA's Board of Directors determines which cases are exempt from the additional amount and whether it is a total or partial exemption.
The registration provisions also apply for individuals who have been granted Emirati nationality while working with an employer who is subject to the provisions of this legal decree, starting from the date they obtained citizenship, except that they may merge previous employment years in order to receive a higher pension and/or end-of-service gratuity, as per the provisions in Article (8) in federal pension law.