Sharjah 24: The provisions of the newly introduced Federal Law No. (57) of 2023 regarding pension and social security applies to all Emiratis employed for the first time from 31st October 2023 in federal, government or private sector entities located in Dubai, Ajman, Ras Al Khaimah, Fujairah and Um Al Quwain, as well as for private sector employees in Sharjah, said the General Pension and Social Security Authority (GPSSA).
Emirati employees in Abu Dhabi who work in the government and private sector are covered by the Abu Dhabi Pension Fund, while the Sharjah Social Security Fund covers government employees in Sharjah.
As part of GPSSA’s awareness campaign ‘Know Your Law’’ the Authority explained that if an insured Emirati who is currently covered by Federal Law No. (7) of 1999 for Pension and Social Security and its amendments, has joined a new employer during or after the 31st October 2023, the provisions of Law no. (57) still does not apply. These individuals will continue to be covered by the provisions of Law No. (7) of 1999. The above also applies to Emiratis who have received their end-of-service gratuity or pensioners in accordance with Law No. (7) of 1999, who continue to be covered by the provisions of Law No. (7) of 1999, even if they decide to return to work after 31st October 2023.
The Authority re-affirmed that all the provisions contained in Federal Decree Law No. (57) of 2023 only apply to newly recruited Emiratis or to those shifting from other pension, given that they meet the required criteria, i.e. they must be a UAE national, must not be less than 18 years old and not more than 60 and should be proven to be medically fit based on an official medical document upon joining an entity.
It is important to note that any amendments such as the insured’s age, which is required to be submitted to the GPSSA upon registration for the first time, can be amended within one year from the registration date, given that proof is submitted that the document has been prepared by a competent UAE-based authority.
Said that, employers must commit to registering their employee within 30 days from the date of joining an entity, and to provide the GPSSA with names of those whose services end within 15 days from their end-of-service date. The employee must also ensure his/her entity has registered him/her and pays monthly contributions in a timely manner, otherwise challenges may arise during the end-of-service period with disbursing insurance benefits. Disbursing pension and end-of-service gratuity to insured Emiratis however, is the responsibility of the GPSSA, and not the employer.
Upon the completion of his/her registration by the entity, the GPSSA issues an insurance number to insured employees to use as a reference in all their transactions; employees must keep checking that their entity has successfully registered them within one month of their joining date. If discovered that the insured has not been registered, the entity is obligated to register on the insured’s behalf retroactively and pay due contributions, subject to late fines.
The Authority emphasised that registration and due contribution payments as per the legally approved rates, are the responsibility of the employer on behalf of the insured. Therefore, any fines resulting in late or inaccurate payments are borne by the employer, who is expected to be knowledgeable regarding the UAE’s federal pension law.
A copy of Federal Law No. (57) of 2023 in both English and in Arabic can be accessed on GPSSA’s website under the Laws and Regulations section.
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