Extension period for Oct, Nov 2024 monthly contributions ends

Prior correspondence sent by the GPSSA has stressed on the fact that employers who were unable to pay their monthly contributions during October and November 2024, due to migrating to the Ma’ashi platform, have been exempt from bearing additional fees with a deadline extended  to 15^th December 2025; accordingly the GPSSA urges employers to continue paying contributions in order to avoid additional fees from arising due to the delay.

GPSSA’s invoices for October 2024 regarding contribution payments submitted by employers indicate that the total number of invoices issued on the Ma'ashi platform has reached 15,441 out of which 13,334 were approved by employers at an 86.3%, while employers paid 12,870 invoices, with a payment rate of 83.3%.

The November 2024 invoices regarding contribution payments that have been submitted by employers indicate that the total number of invoices issued on the Ma'ashi platform has reached 15,359 out of which 13,544 were approved by employers at a rate of 88.1%, while employers paid 12,998 invoices with a payment rate of 84.6%.

The GPSSA stressed that additional amounts as a result of contribution payment delays results in incurring a 0.1% penalty for each day delayed without prior notice, with contributions due to be paid from the 1^st of the month following the month by which they are due and may be extended until the 15^th day of the month, as per federal pension and social security law.

In accordance to Federal Law No. 7 of 1999 regarding pension and social security and its amendments, 20% is the total contribution payment required by insured individuals working in federal, government and private sector entities, out of which 5% is paid by the Emirati employee and 15% by the employer. In a quest to encourage Emiratis employed in the private sector to continue contributing, the government bears 2.5% of the employer’s percentage.

As for Federal Law No. 57 of 2023 regarding pension and social security and its amendments, which has been solely introduced for employees who have entered the workforce as of 31^st October 2023 for the first time, the contribution payments due amount to 26% for federal, government and private sectors, out of which the insured bears 11% and the employer bears 15%, while the government pays 2.5% of the employer’s percentage for Emiratis working in the private sector whose contribution account salaries are less than AED 20,000.