The General Pension and Social Security Authority (GPSSA) has announced the conclusion of the extended period for employers to pay contributions for October and November 2024.
This was previously communicated to UAE-based entities, with an exemption from late payment fees for these months.
Employers are urged to make timely payments to avoid penalties, as late payments are subject to a 0.1% daily fee on the outstanding amount, applied without prior notice. Contributions are due starting from the 1st of the month following the month they pertain to, with an extension available until the 15th of the month.
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. In November, 15,359 invoices were issued, with 13,544 (88.1%) approved and 12,998 (84.6%) paid.
The GPSSA emphasized the importance of adhering to payment deadlines to avoid any penalties. According to Federal Law No.7 of 1999 and its amendments, employees working in federal, government, and private sector entities contribute 20% of their salaries—5% by the employee and 15% by the employer, with the government covering 2.5% for Emiratis in the private sector.
Under Federal Law No.57 of 2023, which applies to employees entering the workforce for the first time after 31st October 2023, the contribution amount is 26%—11% by the employee and 15% by the employer, with the government covering 2.5% for Emiratis earning under AED 20,000 in the private sector.
News Source: Emirates News Agency
