Magazine

Read the latest edition of AIR and MEIR as an Interactive e-book

Mar 2024

UAE: Pensions authority urges employers to comply with registration requirements

Source: Middle East Insurance Review | May 2017

In a circular distributed to employers, the UAE General Pension and Social Security Authority (GPSSA) has called for employers’ compliance with the registration and contribution requirements for their employees.
 
   GPSSA said it has reports revealing non-compliance by certain employers which may cause harm to their UAE employees and their families, such as non-registration of an insured, registering the insured with false employment date, and failure to pay monthly contributions for an insured.
 
   The circular stressed that registering UAE employees with the GPSSA and the payment of their contributions is obligatory under the provisions of Federal Law No. 7 of 1999 concerning Pensions and Social Security, as amended.
 
   The Authority said in accordance with Article 15 of the Pensions Law, non-registration of all or some of the UAE staff members, failure to pay contributions or payment of contributions based on false wages may subject private-sector employers to the payment of an additional amount of 10% of the payable contributions without prior notice or warning.
 
   It also urged employers with overdue contribution payments for their insured employees to settle such amounts on timely basis as per the Law to avoid the payment of additional amounts as prescribed under Article 14 of the Law which stipulates that “The employer shall undertake to pay its share and that of the insured of the contributions payable to the Authority, and in case of overdue payments, the employer shall become liable to pay an additional amount of 0.1% of the payable contributions for each day of delay without the need for warning or notice”.
 
   The Authority noted that the Law includes another penalty for breaching its provisions, as Article 60 of the Law stipulates that “Each employer in the private sector who is subject to the provisions of this Law shall be subject to a fine of AED5,000 (US$1,361) for each employee not registered with the Authority. Each employer who charges its employees with a part of the insurance expenses, that is not provided for under this Law, shall be subject to the same fine, and the court shall, of its own accord, adjudge for compelling the violating employer to pay to such employees the value of the security expenses borne by them”.
 
   GPSSA further explained that the purpose of the circular is to promote awareness among employers of the risks involved in case of non-registration, non-payment or delaying the payment of the contributions payable for their UAE employees, out of its concern for the interest of the employers as partners in the UAE growth journey, and at the same time to preserve the rights of the UAE employees working in various sectors. It stressed that even though the employer is the body assigned with the registration of employees and payment of insured employees’ contributions, all UAE employees working at various sectors must make sure that they are registered with GPSSA to preserve their rights and the rights of their families, as secured by the law. M 
 
AED1 = US$0.27
 
| Print
CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.