The contributions are required for workers beneath the Unified Safety Extension System, which ensures GCC nationals working in any GCC nation obtain the identical social safety protection as they might of their residence nation.
From 1 July 2025, the GPSSA will start implementing penalties on employers who delay the fee of due contributions for his or her GCC nationwide staff.
The penalties can be utilized in accordance with deadlines specified by federal pension legal guidelines within the UAE, and are thought of a rightful entitlement of the pension authorities within the worker’s residence nation.
Contributions are due on the primary day of the month following the interval for which they’re owed, with a grace interval extending till the 15th of that month. Contributions for July 2025 should be remitted to GPSSA between August 1 and 15, for instance.
A each day penalty of 0.1 per cent of the excellent contributions can be charged for every day of delay, ranging from the 16th of the month, with out prior warning or notification.
The choice prompts Article 12 of the Safety Extension System Legislation and aligns with the outcomes of the 23rd assembly of the Committee of Heads of Civil Retirement and Social Insurance coverage Businesses in GCC international locations.
This text mandates the pension authority within the host nation to pursue delinquent employers and take authorized motion to gather contributions and penalties on behalf of the worker’s residence nation pension authority.
The Safety Extension System is obligatory, beneath which staff are required to register their GCC nationwide staff in each the federal government and personal sectors and remit contributions in accordance with the insurance coverage system of the worker’s residence nation.
The employer’s share of contributions shouldn’t exceed the employer’s contribution share within the host nation, with any distinction in contributions to be borne by the GCC nationwide worker.
The system was established beneath Cupboard Decision No. 18 of 2007 to manage social safety safety for GCC nationals working outdoors their residence nation inside any GCC member state. GPSSA oversees its implementation within the UAE.
