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UAE jobs: Private sector companies must complete pension registration within 30 days of work permit issuance
All private sector entities across the country, except those in Abu Dhabi, must pay their contributions at the beginning of every month
Private sector companies must register their Emirati employees in the pension system within 30 days from the issuance of their work permits, the Ministry of Human Resources and Emiratisation said in a reminder on Friday.
“This is a legal requirement that companies must apply,” the ministry explained.
The requirement is part of Nafis — a federal programme that empowers Emiratis to get employed in the private sector. Under the programme, 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.
According to the General Pension and Social Security Authority (GPSSA), all private sector entities across the UAE, except those in Abu Dhabi, must pay their pension contributions at the beginning of every month. The maximum grace period is till the middle of each month.
“After registering 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 paying 12.5 per cent of the contribution salary. The government pays 2.5 per cent as a means of encouragement and support,” the GPSSA explained.
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The Contribution Calculation Salary includes the basic salary, gratuities and allowances as per the employment contract. If the insured joins work after January, the Contribution Calculation Salary of that month serves as the basis of contribution payments until next January.
How to register an Emirati with the GPSSA
The required documents include:
- Copies of the passport, Emirates ID, Family Book and birth certificate
- Three copies of ‘service start form’ of the insured
- Appointment letter
- Original copy of employment contract (attested)
- Photocopy of the medical examination report after appointment
Additionally, the contributor’s age should be between 18 and 60. Once an employee’s registration procedures are completed, an insurance number is issued by the GPSSA.
The number of contributors working in the private sector registered with the GPSSA increased to 21,868 across 7,874 private sector entities, the authority added.
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