Dubai Employers Guide to UAE Pension and Social Security

As an employer in the United Arab Emirates, understanding the pension and social security landscape is crucial for your business. Whether you're new to the region or have been operating here for years, navigating the General Pension and Social Security Authority (GPSSA) regulations is essential. Let's break down the key points to help you support your Emirati employees and stay compliant.

Understanding GPSSA

The GPSSA manages pensions and social security for UAE Nationals working in Dubai. If your business has 20 or more employees, you're required to hire Emirati workers and register them with GPSSA.

Registration Deadlines

• Register new joiners within 30 days from the date of joining.
• Deregister leavers within 15 days from their last working day.
• Any delay results in an AED 200 fine per day.

Social Security & Pension Contributions:

• Employer’s Contribution: 15% of the total salary to GPSSA.
• Employee’s Contribution: 11% of the total salary.
• Government’s Contribution: 2.5% of the total salary for private sector employees earning less than AED 20,000 per month.

Contributions Calculation

• Contributions are based on the insured’s salary in January of each year. Adjustments are made for employees joining after January.

Payment Deadlines

• ‍‍The contributions need to be paid by the latest 15th of the following month. For example, July’s contribution is due by 15th August. Important to keep in mind that contributions are non-refundable, another reason to make sure you have everything set up correctly or even better work with a partner like Cercli who manages this responsibility for you.

What is it for?

The contributions collected by GPSSA fund:

• Pension Benefits
• Early Retirement Pension
• End-of-Service Gratuity
• Compensation for Work-Related Disability or Death

Pension for GCC Nationals

GCC nationals have similar rights as Emiratis but must be registered on their home country's portal.

Importance of Compliance

Maintaining compliance ensures financial stability for employees and organizations, avoiding fines ranging from AED 10,000 to AED 50,000 per offense.

How can Cercli support?

One Team, One Platform built for modern MENA businesses ensures compliance with the different social security and pension portals across the region. From GPSSA, ADPF to GOSI. Cercli has you covered!

If you have any doubts or need support with pension and social security compliance, get in touch with us now and book a complimentary 15-minute discovery session here

Stay Tuned

Remember to bookmark our page for Part 2 of our series on Abu Dhabi and Sharjah employers.