The monthly pension contributions for Emirati employees who have joined the workforce from October 31, 2023, has increased by six per cent as per the Law No. 57 of 2023. The total contribution salary is now 26 per cent.
Under the new rate, an Emirati employee will contribute 11 per cent of the amount while the employer pays the rest of the 15 per cent. But for Emiratis working in the private sector whose contribution account salaries are less than Dh20,000, a rate of 2.5 per cent is paid by the UAE government as a form of support and encouragement to hire Emiratis in the sector.
Earlier, employees contributed 5 per cent to their monthly contribution salary while employers contributed 12.5 per cent, while the remaining 2.5 per cent was paid by the government.
The General Pension and Social Security Authority of the UAE on Wednesday clarified that the government entities and private sector firms that employ UAE citizens are offered two options to pay contributions at the new rates for three months, starting October until December 2023 as per the new law.
A new circular was sent in November to all public and private sector entities, giving guidelines on ways by which contribution payments are transferred on behalf of Emiratis joining work for the first time as of October 31, 2023 and those who were not previously covered by the provisions of the current Law No. 7 of 1999.
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