Abu Dhabi, 13 April 2017: The General Pension and Social Security Authority (GPSSA) said that to enable us to fulfill our obligations towards beneficiaries, employers should pay their share of contributions and the insured should be more aware of the need for the social security as a shield against the potential work risks and a tool to generate a regular income after the end of service.    

According to the GPSSA, the law requires employers to pay contributions at the time of paying staff salaries at the end of every month. The GPSSA may extend the deadline to the middle of the next month. However, the GPSSA advises the employers to make timely payments at the end of every month to avoid fines to be imposed as a result of delayed payment.

The GPSSA stressed that the law authorizes the employer to deduct 5% of the insured salary and transfer it to the GPSSA along with the employer's share. This authorization aims mainly at ensuring speedy and timely transfer of contributions to the GPSSA. If the employer deducts such amount from the insured salary at the time of salary payment but fails to transfer it by the deadline specified in the pension law, this will be inconsistent with the main objective of this authorization.

The GPSSA said that certain major companies which are considered public entities as the government is a shareholder in them pay the contributions at 12.5% of the salary. They think that they are private employers who can benefit from the government support which amounts to 2.5% of the private employers' contributions specified at 15% of the salary. This is a violation as those major companies are not registered with the GPSSA as private employers.

Some companies do not register and subscribe on behalf of the pensioners who returned to work, according to the GPSSA. This is done either at the pensioner's request or because the employer does not know that it must register such employee and pays contribution again as long as the employee is less than 60 years old and working for an entity that is subject to the law.               

The GPSSA said that these actions cost the employers about AED 24.5 million in fines in 2016. Such amounts are additional burdens on the shoulders of the employers and could have been avoided if proper procedures had been applied according to the law.

For more information please contact:
Mr. Adel Ramzy
Media & PR Specialist
Tel. +971 2 2030 022
Fax: +971 2 4418 587
E-mail: adel.ramzy@gpssa.gov.ae
Website: www.gpssa.gov.ae

© Press Release 2017