All entities in the private sector are required to register their Emirati employees with the General Pension and Social Security Authority (GPSSA) within 30 days from their employment date, the Emirates News Agency (WAM) said on Tuesday.
The move is part of the governmental federal programme, Nafis and requires employees to ensures that registration has been completed within a month from their date of joining.
Nafis was launched as part of the Project of the 50, aimed at accelerating the development journey of the UAE.
Through the programme, Emiratis employed in the private sector are offered a range of benefits such as an Emirati Salary Support Scheme; a Pension Programme; Child Allowance Scheme; Talent Programme; Apprentice Programme; Recruitment Targets; National Healthcare Programme; Unemployment Benefit; Vocational Counselling Programme; Job Offers and On-the-job training programme.
GPSSA added the requirement is part of the UAE’s effort to “increase the competitiveness and sustainability of UAE nationals by empowering them to occupy jobs in the UAE’s private sector over the next five years.”
Private companies with at least 50 employees must meet their 2 percent Emiratisation target before January 2023.
Additionally, all private sector firms in the UAE, must pay their pension contributions at the beginning of every month. A maximum grace period is permitted until the middle of each month. Abu Dhabi is exempt from this condition.
Once registered with GPSSA, insured individuals are “obligated to pay their share in contributions for 5 percent from the Contribution Calculation Salary which the employer deducts from the employee’s salary and transfers the same to the GPSSA on monthly basis; in addition to paying 12.5 percent of Contribution Calculation Salary, while the government pays 2.5 percent as a means of encouragement and support,” WAM said.
The Contribution Calculation Salary includes the basic salary, gratuities and allowances (to be paid regularly and monthly) as per employment contract and is the basis of contribution payments within one complete year.
If the insured joins work after the month of January, the Contribution Calculation Salary of that month serves as the basis of contribution payments until next January.
To register an Emirati employee with the GPSSA, the following documents must be submitted. This includes:
- Passport copy
- Copy of Emirates ID
- Copy of family book ID
- Copy of birth sertificate copy or Age Estimation Document
- Three filled copies of ‘service start form’ of the insured (service start form no. 1)
- Appointment letter
- Original copy of employment contract attested by the Ministry of Labor and photocopy of medical examination upon appointment.
The requirements also states that contributors age should not below 18 and not exceed 60. Employees must also be fit to work upon registration.
Once an employee’s registration procedures are completed by his/her entity and all the above documents are verified, an insurance number is issued by the GPSSA.
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