The UAE Pension Authority reports the measures taken during the year as part of the ‘Your Commitment Protects You’ Campaign
GPSSA inspectors visit 135 entities during 2022
Abu Dhabi March 8, 2023: The Inspection Department at the General Pension and Social Security Authority (GPSSA) paid scheduled and random visits to 135 entities across the UAE during 2022 to verify the level of adherence amongst employers, as per the provisions of the UAE Pension Law to register and contribute on behalf of their Emirati employees with the GPSSA.
Findings of the inspection visits revealed some violations such as failure to register on behalf of some insured Emiratis, failure to contribute on behalf of others, charging a higher amount of contributions than the percentage owed by the insured individual, payment of contributions based on inaccurate wages and not clarifying the employment relationship in a clear and appropriate manner.
The GPSSA highlighted their keenness to raise awareness regarding any practices that bring harm to an insured person and to his/her family, as well as to clarify the violations issued from these practices, which is the responsibility of an entity who are required to partner with the GPSSA in comprehending the law in order to avoid those violations and achieve the objectives of the insurance system. This however does not absolve the insured Emirati from double checking his/her registration and monthly contributions with the GPSSA.
Entities who delay the payment of contributions for their Emirati insured employees, which is due from the beginning of the month till the 15th day of that same month, are charged 0.1% of the due contributions for each day delayed.
As per the provisions of the pension and social security law, not paying contributions on behalf of insured individuals entails a fine of Dh5,000 for each employee, and the same fine applies if the entity deducts contribution percentages from an insured person with a higher rate due from him/her.
Additionally, paying the insured’s contributions on unreal wages or not paying them on behalf of some employees results in the employer paying 10% of the value of contributions due from them.
Deliberately refraining from sharing data with the intention of obtaining funds from the GPSSA unjustly, or submitting incorrect data to the GPSSA or its inspectors with the aim of not fulfilling dues to the Authority exposes the employer to a penalty that may reach imprisonment and a fine not exceeding Dh5,000 or one of the two penalties.
