UAE: Pension authority inspectors granted judicial powers

Inspectors of the UAE’s General Pension and Social Security Authority (GPSSA) have been granted judicial powers when monitoring an employer’s compliance in implementing the pension and social security provisions for their Emirati employees. The GPSSA can even effect judicial seizures for those who default, as per a decision by the Minister of Justice.

During inspection visits, employers must make available all financial records related to their employees’ salaries, as well as administrative records such as appointment letters, contracts, vacations, termination of service and others.

Business owners are also expected to specify the address of their company’s headquarters as well as its affiliated branches, and to notify the GPSSA in case any changes occur.

Employers are obliged to submit data on their Emirati employees upon joining their entity. These include end-of-service benefits and salary adjustments. Salary contributions for insured Emiratis employed in the private sector are paid in January every year. No salary increase or decrease will be considered after January.

ALSO READ:

• UAE jobs: Private sector companies must complete pension registration within 30 days of work permit issuance

“If an insured individual joins an entity after the month of January, the contribution calculation salary of that month becomes the basis of contribution payments until the following January,” the GPSSA explained. “Additionally, private sector entities must provide the GPSSA with salary statements and monthly contributions for all their Emirati employees in January every year. They must ensure any changes that occur, such as number of employees and salary alterations, are reported to the GPSSA on a monthly basis. Contributions are calculated on the basis of the last statement submitted to the GPSSA, until the actual due contributions.”

ALSO READ:

• Dh72,000 fine for not meeting Emiratisation target in UAE: What happens if firms don’t pay penalties

• Up to Dh5,000 fine: UAE private sector firms warned against providing incorrect data of Emirati employees

• Jobs
• UAE