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27 February 2024

General Pension and Social Security Authority to exercise judicial control to monitor employers' compliance on Emirati employees

Published
By WAM

Inspection officers at the General Pension and Social Security Authority (GPSSA) have been granted judicial control when monitoring an employer’s compliance in implementing the pension and social security provisions for their Emirati employees, including registering and contributing on their behalf.

Employers are obliged to submit data for all and any of their Emirati employees upon joining their entity, including end-of-service benefits and salary adjustments, noting that salary contributions for insured Emiratis employed in the private sector are paid in January of each year, without any salary increase or decrease considered after the month of January. If an insured individual joins an entity after the month of January, the contribution calculation of salary of that month becomes the basis of contribution payments until the following January.

Additionally, private sector entities must provide the GPSSA with salary statements and monthly contributions for all their Emirati employees on January of each year, and to ensure any changes that occur, such as number of employees and salary alterations, are reported to the GPSSA on monthly basis. Contributions are calculated on the basis of the last statement submitted to the GPSSA, until the actual due contributions.

During inspection visits, employers must ensure all financial records related to their employees’ salaries, as well as administrative records such as appointment letters, employment contracts, vacations, termination of service and others, are available upon an inspection officer's request. Business owners are also expected to specify the address their company’s headquarters as well as its affiliated branches, and to notify the GPSSA in case any changes occur.