General Pension and Social Security Authority Clarifies Contribution Account Salary Criteria

The General Pension and Social Security Authority (GPSSA) states that a contribution account salary, shared between employers and insured Emiratis, determines monthly contributions, enhancing pension and end-of-service benefits with longer contributions.

Under the "Know Your Law" campaign, the contribution amount, as per Federal Law No.57 of 2023, is 26%, with 11% borne by insured Emiratis and 15% by employers, and a 2.5% government share for private sector employees earning below AED20,000.

For those employed before October 31, 2023, Federal Law No.7 of 1999 applies, requiring a total 20% contribution, with 5% from the insured and 15% shared by the government and private sector, receiving a 2.5% government support similar to the 2023 law. Contribution account salary deductions for government sector Emiratis include basic salary, allowances, and must not exceed AED100,000, while private sector employees' contribution account salary is contractually set between AED3,000 and AED70,000.

Insured individuals in regional, international, or foreign missions follow employment contract terms for contribution account salary, as specified by GPSSA's Board of Directors for employees with salary schedules. The 2023 Federal Decree Law applies to them, setting the maximum contribution account salary in line with the private sector. Law No. 9 of 1999, with a contribution account salary of AED300,000 (government) and AED50,000 (private), doesn't include those in regional missions, but the new decree includes them with a contribution account salary ceiling aligned with the private sector.

News Source: Emirates News Agency