Move for decent end-of-service benefits for GCC citizens

Abudhabi:thegeneralpensionandsocialsecurity Authority (GPSSA) has announced that its inspectors are required to ensure entities registration of their GCC employees in the insurance extension protection system.

Government, federal and private entities across the UAE are obligated to register and contribute on behalf of their GCC employees as part of the unified system of extending insurance protection, a requirement that GPSSA’S inspectors check for during inspection visits.

The registration is mandatory according to Cabinet Resolution No.18 of 2007, which was issued on behalf of the Council in July 2007 to regulate insurance protection provisions for GCC citizens working in any of the GCC countries apart from their own country.

The initiative aims to provide a stable income and a decent end-of-service gratuity for GCC citizens and their families.

The employee and the employer are obligated to bear their monthly share of contributions in accordance with the applicable percentages approved in the employee’s home country.

Theentity’scontributionshareshouldnotexceed the percentage applicable in the UAE, which the employee is responsible in covering to ensure full payment of contributions to the pension system in the employee’s home country are made.

The difference in amount is deducted from the employee’s salary by the Uae-based entity, unless their home country decides to pay that difference on behalf of the GCC citizen. The due payment is then transferred through a specified bank account.

The employer bears any fines arising as a result of a delay in transferring the payment on the specified dates. In this case, the inspection employee has the right to release any violations related to not registering or contributing GCC employees as per the UAE Pension Law.

Despite the responsibility of the Uae-based entity to register and deduct contribution payments each month on behalf of the GCC citizen, the insured must also inform the GPSSA in case their employer defaults in registering or paying monthly contributions on time.

Entities use the unified system of extending insurance protection form to register GCC citizens as part of the insurance extension protection system and is used to provide a link between the Uae-based entity and the pension authority by which the GCC employee working in the UAE is subjected to. This can be accessed and found in GPSSA’S website.