GPSSA affirms mandatory registration and contribution for Emiratis working in government and private sectors in the UAE
Abu Dhabi, 25 April 2022: The General Pension and Social Security Authority (GPSSA) said it is of paramount importance for public and private entities across the UAE to register their Emirati employees with GPSSA from their first month of employment. Monthly and timely contributions result in pension and retirement benefits, end-of-service gratuity and compensation in case of a work-related disability or death.
Mohamed Saqer Al Hammadi, Acting Head of Pension Operations Divion, explained that registration and contribution for UAE nationals working in government and private sectors is mandatory under the provisions of the Federal Law No. (7) of 1999 for pensions and social security and its amendments, which oblige employers to register Emirati employees immediately upon joining their entity according to the applicable conditions, with the exception to retired military employees working in the federal government after 15 November 1999, based on the Cabinet Resolution No. (21) of 1999.
Al Hammadi said it is the responsibility of employed Emiratis to verify whether their entity has registered them with GPSSA. If not, the individual employee must contact GPSSA and make it clear that he/she is not registered; this reporting process protects both the employee and his/her family’s rights. “Registering to the UAE’s pension scheme protects the insured and his/her family from potential work risks, since the insured is entitled to a pension in the event of a work-related injury, which may result in the inability to work or at times death, even if the concerned individual has only contributed for one day, it all counts.”
Prior to registering and contributing with GPSSA, the insured individual must meet the requirements, namely: insured individuals must not be less than 18 nor over 60 years old; he/she must be medically fit to work upon employment based on a medical report submitted by an approved medical healthcare facility and most importantly the insured must be a UAE national.
The provisions of the UAE’s pension law are subject to employers in the government sector, including the federal government, local governments except Abu Dhabi and Sharjah, public companies and banks affiliated with the federal government. The law also encompasses employers in the private sector with exception to Abu Dhabi.
Entities headquartered in Dubai, such as Citibank, are subject to the provisions of the federal pension law and are registered with GPSSA. Accordingly, its affiliated branches in the UAE are also subject to the UAE’s federal pension law. Companies that are headquartered in Abu Dhabi, however, alongside their branches in the UAE, are subject to the Abu Dhabi pension law, i.e. First Abu Dhabi Bank as an example.
“The conditions of being subject to the provisions of the law apply to free zones and agencies working in the field of tourism and hospitality that employ Emiratis. Even individual employees who have terminated their services within one month of employment are expected to comply with submitting all related requirements, according to the pension law,” Al Hammadi added.
