Abu Dhabi: The General Pension and Social Security Authority (GPSSA) has announced that its inspectors are required to ensure entities’ registration of their GCC employees in the insurance extension protection system.
Government, federal, and private entities across the UAE are required to register on behalf of their GCC employees as part of the system. The registration is mandatory according to Cabinet Resolution No. 18 of 2007, which was issued on behalf of the Council in July 2007.
The employee and the employer are obligated to bear their respective monthly shares of contributions in line with the applicable percentages approved in the employee’s home country.
The entity’s contribution share should not exceed the percentage applicable in the UAE, which the employee is responsible for covering to ensure full payment of contributions to the pension system in the employee’s home country. The difference in amount is deducted from the employee’s salary by the UAE-based entity, unless their home country decides to pay that difference on behalf of the GCC citizen. The due payment is then transferred to a specified bank account.
Any fines incurred as a result of failure to transfer payment on the specified dates must be borne by the employer.In this case, the inspection employee has the authority to release any violations related to GCC employees not registering or contributing to the UAE Pension Law.
The initiative aims to provide a stable income and a decent end-of-service gratuity for GCC citizens and their families.
Despite the responsibility of the UAE-based entity to register and deduct contribution payments each month on behalf of the GCC citizen, the insured should inform the GPSSA in case of any delay or mistake from the employer in registering or paying monthly contributions on time.
The unified system of extending insurance protection is used to register GCC citizens as part of the insurance extension protection system as well as to provide a link between the UAE-based entity and the pension authority to which the GCC employee working in the UAE is subjected. This can be accessed and found on GPSSA’s website.