Calling on Employers to Register and Pay Employees Contributions as of Their Joining Date

Abu Dhabi, 18 February 2016

In a circular issued to employers in the public and private sectors, the General Pension and Social Security Authority (GPSSA) underlined the necessity to register working UAE Nationals in the pension program and proceed with paying their due contributions starting from their joining date and until the end of their service duration, even if less than one year, and as long as the service durations are note temporary, daily or one of the probation periods that precede the appointment, in accordance with the provisions of the Pension and Social Security Law No. (7) of the year 1999, as amended, which considers the inclusion of any service period in the period of subscription and therefore allows the insured to add previous service periods of less than one year to the subsequent service periods and include the same in the calculation of the benefits they are entitled to.

GPSSA called on all delayed employers to abide by the law to register and pay the contributions for their previous and currently insured UAE national employees in order to preserve their rights and avoid any penalties and liabilities that will apply to the non-compliant entities. GPSSA noted that Article 14 of the Law stipulates that the employer shall pay his share as well as that of the insured in the contributions due to GPSSA. In case of any delay in paying contributions, the employer shall pay penalties for each day of delay without the need for notice or warning.

In its circular, GPSSA also unveiled a resolution it recently passed which allows the insured to add service durations less than one year to their subsequent service periods and include the same in the calculation of the benefits they are entitled to, in accordance with the Law of Pension and Social Security No. 7 of 1999, as amended, which excludes the addition of service durations that are temporary, daily or one of the probation periods that precede the appointment, and those service durations that have ended due to reasons of total deprivation of the pension or the allocation.

Accordingly, GPSSA calls on all UAE nationals who have worked for entities registered with GPSSA for a service period that is less than one year to ensure that their employers had registered them and paid contributions for them for such periods so that it can be added to the subsequent service periods registered at GPSSA.

-Ends-

For more information, please contact:
Mr. Adel Ramzi, Media & Public Relations Specialist
Tel: 022 2030 2 971+
Fax: +9712 4418 587
E-mail: adel.ramzy@gpssa.gov.ae
Website: www.gpssa.gov.ae

© Press Release 2016