UAE Pensions and Social Security Laws: Know the Difference

(57) of 2023 on pensions and social security is 26 percent, of which insured Emiratis who have joined the workforce on or after October 31, 2023 have a percentage of 11 percent, while the employer pay 15 percent; These contributions are paid according to the salary in the insured’s contribution account. The government supports a 2.5 percent share on behalf of private sector employees whose contributions account salaries are less than Dh20,000 as a form of support for Emiratis working in the private sector.

The provisions of the Federal Law No. (7) of 1999 on Pensions and Social Security and its amendments apply to Emiratis employed before October 31, 2023 and involve a total of 20 percent in contributions, of which the insured pay five percent. percent, while the government and the private sector contribute 15 percent. The UAE government pays 2.5 percent of the percentage owed by the private sector entity as a form of support, similar to the 2023 federal law.

The components and elements of the contribution account salary, which is subject to deduction for Emirati employees working in the government sector, include the insured’s basic salary, cost of living allowance, child welfare allowance and insured, as well as the housing allowance, provided that the salary in the insured’s contribution account does not exceed 100,000 dirhams.

The law specifies the contribution account salary for private sector employees with a payment determined by their employment contract, so that the contribution account salary is not less than Dh3,000 and not more than Dh70,000.

The contribution account salary for insured persons employed in regional, international or foreign missions operating in the UAE is based on the basic salary of the insured person specified in the employment contract, in addition to any benefits, bonuses or allowances granted in exchange for his/her work.

The decree indicates that the GPSSA Board of Directors may determine the elements that are included in the calculation of the salary of the contribution account in cases in which the employer applies a schedule for the salaries of its employees, contrary to what is established in the provisions for the calculation of the contribution account. salary.

According to the current Law No. 9 of 1999, the contribution account salary is Dh300,000 in the government sector and Dh50,000 in the private sector. An insured Emirati working in regional, international or foreign missions operating in the UAE is not included in Law No. 9 of 1999, while he is included in the new Federal Decree Law No. (57) of 2023, with a established maximum limit. so that your salary in the contribution account is at the same level as that of the private sector.