GPSAA explains law on insured Emiratis
ABU DHABI: 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 results in an additional charge of Dhs200 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 AED100 for each unsetled day, multiplied by the number of insured individuals.”
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.