UAE pension authority: Emiratis must register within 30 days of joining.

The General Pension and Social Security Authority (GPSSA) has issued a directive stipulating that employers falling under the provisions of Federal Law No.57 of 2023 concerning pension and social security obligations are mandated to register their Emirati employees within 30 days of their employment commencement.

Under this regulation, entities are required to furnish GPSSA with the names of insured Emiratis whose service periods conclude within 15 days. Failure to comply with this requirement will incur an additional charge of Dh200 for each day of delay, multiplied by the number of insured employees within the entity.

Furthermore, GPSSA emphasized the employer's responsibility for contribution payments. Employers are obligated to submit statements, data, or documents, including salary details of the insured individuals, to GPSSA within ten days for contribution calculation in accordance with federal law provisions. Any delay in this process will result in an additional charge of Dh100 for each unsettled day, multiplied by the number of insured individuals.

As outlined in Federal Law No.57 of 2023, contributions must be initiated from the employee's joining date, regardless of whether it occurs mid-month or if the employee leaves before month-end. Contributions are to be remitted at the start of each month, with a maximum grace period of 15 days. Late payments incur an additional charge of 0.1% of the contributions due per day without prior notice, not exceeding the contribution value.

Contributions are calculated based on real salaries, with payments in the private sector determined by the January contribution account salary of each year. For government sector employees, contributions are based on the actual contribution account salary monthly.

Failure to pay contributions on actual salaries incurs an additional charge of 10% of the contribution value without prior notification. GPSSA's Board of Directors has discretionary authority to grant exemptions from this additional charge in certain cases.

Moreover, the registration requirements extend to individuals obtaining Emirati nationality while employed by an entity subject to this legal decree. Such individuals must be registered from the date of acquiring citizenship, with the option to amalgamate previous employment years to enhance pension and/or end-of-service gratuity benefits, as specified in Article 8 of the federal pension law.