Extension period for Oct, Nov. contributions ends

The General Pension and Social Security Authority (GPSSA) has announced the conclusion of the extended period for paying contributions for October and November 2024, as previously communicated to UAE-based entities.

Employers were previously exempted from late payment fees for October and November.

The GPSSA urged employers to pay contributions promptly to avoid penalties. For October 2024, the Ma’ashi platform issued 15,441 invoices, of which 13,334 (86.3%) were approved, and 12,870 (83.3%) were paid. For November, 15,359 invoices were issued, with 13,544 (88.1%) approved and 12,998 (84.6%) paid.

The GPSSA stressed that late payments incur a penalty of 0.1% of the due amount per day, applied without prior notice.

Contributions are due starting from the 1st of the month following the month they pertain to, with an extension allowed until the 15th of that month.

In accordance with Federal Law No.7 of 1999 regarding pension and social security and its amendments, insured employees working in federal, government and private sector entities contribute 20% of salaries — 5% by the employee and 15% by the employer — while the government covers 2.5% for Emiratis in the private sector.

As for Federal Law No.57 of 2023 regarding pension and social security and its amendments, which has been introduced for employees who have entered the workforce as of 31st October 2023 for the first time, the contribution payments due amount to 26% for federal, government and private sectors,11% by the employee and 15% by the employer, with the government continuing to cover 2.5% for Emiratis in the private sector earning under Dhs20,000.

WAM