Abu Dhabi, September 3rd, 2019: GPSSA invited public and private employers subject to the Pension and Social Security Federal Law to register their UAE workers with GPSSA and pay the subscriptions adopted under the Law for insured citizens.
In a circular issued to public and private employers, GPSSA confirmed that insurance and subscription are mandatory for employers under the Law. GPSSA also stressed that employers subject to the Law must comply with it when appointing citizens by registering and subscribing with GPSSA on behalf of them, provided that they are between 18 and 60 years of age, medically fit to work and UAE nationals and could prove such by a copy of the family book.
GPSSA said that its statistics show that the number of employers registered with GPSSA are (6263) employer, with 88 employers from the federal public sector, (382) from the local public sector and (5793) from the private sector.
GPSSA stated that the registration and subscription rules apply to any person who obtains a UAE citizenship at any time. They also apply to Gulf Cooperation Council’s citizens working in the State according to the provisions provided in the GCC Insurance Protection Extension Program.
GPSSA noted that employers must register and subscribe on behalf of employees who meet the requirements at GPSSA within a month at most from the date the employee starts his employment. Furthermore, employers must provide GPSSA with a list of names for the workers whose employment was terminated within a month at most from the date of their employment termination. In case of delay in subscription payment by the employer, the employer must pay an additional amount of (0.1%) of the payable subscriptions for each day of delay. GPSSA noted that if the employer fails to deduct the subscriptions from the insured’s salary or should the employer pay subscriptions not in line with the real salaries, the employer shall pay an additional amount of (10) of the payable subscriptions according to the Pension Law.
It also stated that all employers from the federal public and local sectors throughout UAE must register with GPSSA, except those in the local sector and private sector in Abu Dhabi and those in the local sector in Sharjah. GPSSA invited citizens working for employers subject to the Pension and Social Security Federal Law to verify whether their employers have registered them with GPSSA or not and to contact GPSSA if it was proven that they were not registered in order for them to protect their rights and the rights of their families.
GPSSA said that “insured citizens should ensure that the subscription deducted from their monthly salaries and paid to GPSSA through their employers are only 5% of the subscribed salary, which is the basic salary, cost of living allowance, social allowance for the citizen, social allowance for the children and accommodation allowance for public sector employees and everything included in the employment contract, up to 50 thousand AED, for private sector employees”.
GPSSA said that public sector employers shall bear 15% on behalf of their citizen employees insured at GPSSA. On the other hand, private sector employers will bear 12.5% and the Government shall support private sector citizen employees with 000.5 of the 15% subscriptions payable by employers.
GPSSA noted that subscriptions will become payable on the first day of the month following the month for which the amount is due. The due date may be extended until 15th of that month, noting that subscriptions are not refundable. Moreover, GPSSA said that employers must pay their share and the shares of insured citizens in the payable subscriptions to GPSSA at the dates set under the Law (15 days at most from the month following the due date) and in case of delay, they shall pay (01) of the payable subscriptions for each day of delay.