Articles

Abu Dhabi, 23^rd February 2025: Insured Emiratis are offered a period of fifteen days to pay their monthly contributions, starting from the first day to the fifteenth day of each month as per Federal Law No. 7 of 1999 and Federal Law No. 57 of 2023 regarding pension and social security and its amendments, stressed the General Pension and Social Security Authority (GPSSA).

The contribution account salary is the first and foremost process by which an employer’s contribution share and that of the insured are paid on monthly basis. The amount is based on the insured’s basic salary as specified in the employment contract, in addition to end-of-service benefits, bonuses or allowances granted in exchange for his/her work. 

Contribution rates in Federal Law No. 7 of 1999

According to Federal Law No. 7 of 1999 for Pension and Social Security and its amendments, contributions are due from the insured at a rate of 20% of the contribution account salary, out of which the insured bears 5%, the employer in the government and private sector bears 15% and the government pays 2.5% of the rate on behalf of the employer in the private sector as a form of supporting Emiratization in the private sector.  

Features of the Contribution Account Salary

In accordance to Federal Law No. 7 of 1999 for Pension and Social Security and its amendments, the contribution account salary, which is subject to deduction for Emiratis employed in the government sector, includes the insured's basic salary, cost of living allowance, social allowance for children and the insured and housing allowance, provided that the contribution account salary of the insured does not exceed AED 300,000.

An insured’s monthly contribution in the private sector is calculated on the basis of his/her gross salary, including all allowances mentioned in the contract of employment with a maximum contribution salary of AED 50,000.

Contribution rates in Federal Law No. 57 of 2023

Contributions are paid on behalf of the insured at a rate of 26% of the contribution account salary in the private sector as per Federal Law No. 57 of 2023 regarding pension and social security and its amendments, whereby the insured bears a percentage of (11%), the employer pays a percentage of (15%) and the government bears (2.5%) of the percentage for employees in the private sector whose contribution account salaries are less than AED 20,000.

According to Federal Law No. 57 of 2023, the contribution account salary is calculated based on the insured’s basic salary, cost of living allowance, social allowance for children and the insured, in addition to housing allowance, provided that the insured’s contribution account salary does not exceed AED 100,000.

The insured’s monthly contribution in the private sector is calculated based on the salary determined in the employment contract. The contribution account salary should not be less than AED3,000 and not more than AED 70,000.

As for insured employees working in any of the regional and international missions and foreign political missions operating in the country, the law determines that their contribution account salary is based on their basic salary as specified in the employment contract, in addition to the benefits, bonus or allowance granted as per the contribution account salary conditions determined for the private sector.