GPSSA requires registration of insured Emiratis within 30 days of employment

He General Pensions and Social Security Authority (GPSSA) said that employers subject to the provisions of Federal Law No.57 of 2023 on pensions and social security must register their Emirati employees within 30 days of their employment.

Entities must provide the GPSSA with the names of insured Emiratis whose periods of service end within 15 days. Violation of this provision results in an additional charge of 200AED for each day of delay, multiplied by the number of insured employees who work in the entity.

GPSSA aggregate,

“The payment of contributions is the responsibility of the employer, so the statements, data or documents, including the salary details of the insured, must be sent by the entity to the GPSSA within a period of ten days to calculate the pre-established contributions as established. in federal law. In case of delay, the entity pays an additional AED 100 for each unpaid day, multiplied by the number of insured people.”

In accordance with Federal Law No. 57 of 2023, contributions must be paid from the date of entry of the employee to the entity, even if this implies his entry in the middle of the month or his departure from the entity before the end of the month. .

Contribution payments must be transferred at the beginning of each month, with a maximum grace period of 15 days. The amount is not refundable. In case of late payment, the employer is obliged to pay an additional 0.1% of the contributions due for each day of delay without prior notice or warning. The additional amount must not exceed the value of the contribution owed.

Contributions must be paid based on actual wages, that is, the insured’s payments are paid based on the salary in the contribution account. It is important to note that contributions for private sector employees are paid based on the salary in the contribution account for January of each year. If the employee joins after January, contributions are calculated based on the salary of the month in which he joined the entity until the following January.

Contributions for government sector employees are calculated based on the actual salary in the contribution account each month.

Non-payment of contributions on actual wages obliges the employer to pay an additional 10% of the value of contributions due without notice or prior notification. GPSSA The Board of Directors determines which cases are exempt from the additional amount and whether it is a total or partial exemption.

The registration provisions also apply to persons who have been granted Emirati nationality while working with an employer subject to the provisions of this legal decree, from the date on which they obtained citizenship, except that they may merge years of previous employment to receive a higher pension and/or end-of-service bonus, as provided in article (8) of the federal pension law.

News source: Emirates News Agency