UAE tells firms to pay monthly pension funds or else face suspension of Emiratisation benefits

Mohammed Yassin, Staff Reporter

The Ministry of Human Resources and Emiratisation (MOHRE) stressed the necessity of paying the monthly subscriptions of those insured by the employer in the pension funds within 60 days, as the benefit from “Nafis” programme will be suspended for a maximum of 90 days.

The ministry added that if subscriptions are not paid within 90 days, the employee will not benefit from Nafis and therefore the company has to apply again to enroll the employee, after fulfilling all conditions.

MOHRE also affirmed that it is mandatory for employers of the private sector to enroll citizens and pay their monthly subscriptions to the pension, retirement and social insurance systems within 30 days from the date of joining work, to avoid legal procedures and penalties, and in implementation of the provisions of Decree-Law57 of 2023 regarding pensions and social insurance, and Law7 of 1999 regarding pensions and social insurance and its amendments.

MOHRE called on citizens working for the private sector to make sure they have are completely registered in the pension, retirement and social insurance systems within one month of joining work and paying the required shares to guarantee their employment rights and enhance their social security.

Registering employee citizen in pension, retirement and social insurance funds ensures that he is considered within the company’s set Emiratisation ratio, which is a basic condition for obtaining Nafis support, MOHRE added. It explained that not registering citizens working for the private sector companies in pension, retirement and social insurance funds affects these companies’ achievement of the Emiratisation targets set by the Cabinet, and consequently they are fined.

MOHRE stressed the great financial support provided by Nafis to citizens working for the private sector and the companies they work for, as Nafis is committed to pay the full share of the employer in the first year, while in the second year the employer bears only 2%, in the third year 4%, in the fourth year 5%, and in the fifth year 6%, for citizens receiving a monthly salary of Dhs20,000.

Nafis programme also provides full support to citizens, as it pays their full shares to retirement funds, pensions and social insurance for the first five years of their work, for those receiving a monthly salary of Dhs20,000.

Regarding the procedures a citizen must take if he is not registered by the company in any of the pension, retirement and social insurance systems, or if he faces any difficulties or his employer refuses to enroll him for any reason, MOHRE called for communicating with it through the number 600590000 to take the necessary procedures for registration and protect his rights.