Ensuring entities register their GCC employees in the insurance extension protection system is part of GPSSA’s inspection process
Abu Dhabi, 3rd February 2023 – Government, federal and private entities across the UAE are obligated to register and contribute on behalf of their GCC employees as part of the unified system of extending insurance protection, a requirement that inspectors from the General Pension and Social Security Authority (GPSSA) check for during their inspection visits.
Registering and contributing on behalf of GCC nationals working in the UAE is mandatory according to Cabinet Resolution No. 18 of 2007, which was issued on behalf of the Council on 22nd July 22 2007 to regulate insurance protection provisions for GCC citizens working in any of the GCC countries apart from their own country. The GPSSA was selected as the delegated authority to implement the GCC insurance extension protection system in the UAE.
The initiative is considered one of the most important GCC regulations enforced, since it aims to provide a stable income and a decent end-of-service gratuity for GCC citizens and their families, one that is similar to the pension plan received in their own home country, i.e. the current law offers GCC citizens a pension or end-of-service benefit in accordance to the pension system in their own home country.
The insurance extension protection system applies to GCC citizens employed in the government, federal and private sectors, given that the provisions of the pension and social security law in their own country applies to them, and that the employee carries one of the GCC nationalities and works for an employer subject to the provisions of the civil retirement law in his/her country.
If a GCC citizen loses any of these privileges, his/her participation is suspended through the end-of-service form that is attached to documents concerning the provisions of the pension and social security law, by which the individual must settle his required dues within the specified period.
Additionally, the employee and the employer are obligated to bear their monthly share of contributions in accordance with the applicable percentages approved in the employee’s home country. The entity’s contribution share should not exceed the percentage applicable in the UAE, which the employee is responsible in covering in order to ensure full payment of contributions to the pension system in the employee's home country are made.
The difference in amount is deducted from the employee’s salary by the UAE-based entity, unless his/her home country decides to pay that difference on behalf of the GCC citizen. The due payment is then transferred through a specified bank account. The employer bears any fines arising as a result of a delay in transferring the payment on the specified dates. In this case, the inspection employee has the right to release any violations related to not registering or contributing GCC employees as per the UAE Pension Law.
Despite the fact that it is the UAE-based entity’s responsibly to register and deduct contribution payments each month on behalf of the GCC citizen, the insured must also inform the GPSSA in case his/her employer defaults in registering or paying monthly contributions on time.
The unified system of extending insurance protection form is used by entities to register GCC citizens as part of the insurance extension protection system, and is used to provide a link between the UAE-based entity and the pension authority by which the GCC employee working in the UAE is subjected to. This can be accessed and found in GPSSA’s website,
