Entities of private sector of the United Arab Emirate, except those in Abu Dhabi, must pay their parts to the pension account at the beginning of every month.
Dubai: The private sector companies of the UAE are required to register their Emirati employees with the General Pension and Social Security Authority (GPSSA) within 30 days from their employment date. It is an employee’s responsibility to confirm that registration has been completed within one month from their joining date, the GPSSA has reiterated, KhaleejTimes reports.
The registration has been completed within one month from their starting date, the GPSSA has reiterated.
It is a significant part of Nafis — a federal programme that empowers Emiratis to get employed in the private sector. Under the plan, the UAE aims to increase the number of Emirati beneficiaries from 75,000 to 170,000 over the next five years.
By the end of this year, 2 per cent of a company’s skilled staff must be Emiratis. Fines for failure to achieve the target will come into force on January 1, 2023, with a Dh72,000 (annual contribution) penalty imposed for every UAE national not hired.
GPSSA said, all private sector entities across the nation, except those in Abu Dhabi, must pay their pension contributions in the 1st 2 weeks of every month including grace period.
“After listing with the GPSSA, insured individuals are obligated to pay their share in contributions for 5 per cent from the Contribution Calculation Salary — which the employer deducts from the employee’s salary and transfers to the GPSSA on a monthly basis; in addition to depositing 12.5 per cent of the contribution salary. The government pays 2.5 per cent as a understand of encouragement and support,” GPSSA stated.
Image: Pixels