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GPSSA confirms payment of vacation contributions raises the pension rate or end-of-service benefit

GPSSA confirms payment of vacation contributions raises the pension rate or end-of-service benefit
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As part of its campaign to raise awareness on the rights and duties of the insured in the private sector, launched in conjunction with the NAFIS program announced by the UAE government to support Emiratis employed in the private sector, the General Pension and Social Security Authority (GPSSA) confirmed that insured individuals in the private sector must pay contributions due since this results in increasing the insurance benefits at the end of their service, affirming that leaves of all kinds are included within the insurance contribution period.

The GPSSA stated that the UAE Pensions Law is committed to provide the insured and the employer rights and benefits according to the percentage due in the case of a paid vacation, noting that insured individuals are expected to pay their monthly share of contributions and that of the employer if they decide to study without a paid leave or get seconded to another entity abroad without payment, or even chose to take a special vacation.


As for sick leaves, the insured is obligated, according to the law, to pay his/her share based on the actual salary received during the leave, while the employer must pay a share on the full salary of the contribution account, whether the leave is with or without pay.

The authority pointed out that the employer in the private sector must commit to paying the contributions on the dates specified in the law under all conditions, and that the insured is mandated to pay the contributions in one payment for special leaves if one of the spouses accompanies the other, or study leave without pay within one year from the date of the end of the leave. In such case, the insured must pay the amount due in installments for a period equal to the period of the leave, with the approval of the Director General of the Authority.

News Source: Emirates News Agency

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