GPSSA (General Pension and Social Security Authority) was established in the UAE under Federal Law No. 6 of 1999 to provide pension and social security for the citizens of the UAE

1. General Pension and Social Security
Authority (GPSSA) in the UAE
GPSSA (General Pension and Social Security Authority) was established in the UAE
under Federal Law No. 6 of 1999 to provide pension and social security for the
citizens of the UAE. All working citizens are eligible for a pension in the event of old
age, disability, or death as a result of a work-related injury.
Here, our payroll experts in the UAE take you through a set of frequently asked
questions that pertain to GPSSA in the UAE.
1. To whom does the GPSSA law apply?
The GPSSA Law applies to all UAE citizens who work in the
government or private sectors in Dubai, Sharjah, Ajman, Ras Al
Khaimah, Fujairah, and Um Al Quwain.
2. What is the timeline for registering UAE nationals under the
provisions of the Pension and Social Security Law once an employee
joins a company?
An employer (whether government or private sector) must register UAE
national employees with the authority within one month from the date of
joining.
3. What are the documents required for the registration of UAE
nationals with GPSSA?
 Copy of Passport
 Copy of Emirates ID card
 Copy of the Family Book ID
 Birth Certificate Copy or Age Estimation Document
 3 filled copies of the “service start form” of the insured (service start form
no. 1).

2.  Appointment letter, self-procedure, or employment contract (for the
governmental sector).
 Original copy of employment contract attested by the Ministry of Labor for
citizens working in the private sector.
 Photocopy of medical examination upon appointment.

4. What is the minimum and maximum age for registering an
employee with GPSSA?
Age shall not be less than 18 and not more than 60 years.
5. Is there any document proving that a UAE national employee
has been registered with the Authority?
Yes, the authority issues an insurance number to the employee upon
the completion of his registration by the employer. The employee should
confirm with his/her employer that registration is completed within one
month of their joining date.
6. What is the percentage of contribution applied to UAE nationals
in GPSSA?Government Sector
 Employer Contribution = 15%
 Employee Contribution = 5%
Private Sector
 Employer Contribution = 12.5%
 Employee Contribution = 5%
 Government Contribution = 2.5%
7. What is the base amount for calculating social contributions?
Government sector: basic monthly salary, social allowance of a national,
allowance for children, allowance for cost of living, and allowance for
accommodation.
Private sector: contractual salary stipulated in the employment contract,
including basic salary and allowances (to be paid on a regular and monthly
basis).

3. 8. Is there any maximum limit for the GPSSA base amount?
Yes, maximum base amount for calculating GPSSA is AED 50,000/-
9. Is there any minimum limit for the GPSSA base amount?
Yes, the minimum base amount for calculating GPSSA is AED 1,000.
10. What is the basis for calculating social contributions in the
private sector?
The January salary of each year is the basis of the social contribution
calculation for the remaining months (i.e. February to December). After
the month of January, no salary increases or decreases will be
considered. If the employee joins after January, the salary calculated for
social contribution purposes in the month of joining will be the basis for
payment of contributions until December.
11. How will social contributions be calculated for a new hire and a
leaver (termination) if he/she joined and left in the middle of a month?
In relation to the private sector, social contributions will be paid to the
authorities for the full month in which the service started, other than the
part of the month wherein it is terminated.
12. How will social contributions be calculated in the private sector
during special vacations without pay or unpaid vacations for study?
The insured (contributor) shall bear his share as well as that of the
employer’s share in the contributions.
13. How can a company make a payment against their monthly
GPSSA Contribution?
The company can deduct the employee portion through payroll and pay
the total contribution, i.e., both employer and employee contribution to
GPSSA. Employers can make the payment process through UAEFTS

4. online transfer or cheque payment. While creating the online payment,
all the employee (insured) information, i.e. Emirates ID number,
company number, salary information, pension year, and month should
be provided as remittance information.
14. When shall the employer pay contributions to the authority?
The deadline for completing the GPSSA payment is the 15th of the
following month. I.e., the last date for paying the January contribution is
the 15th of February.
15. What are the consequences of the employer’s failure to pay
contributions in a timely manner?
The employer shall become liable to pay an additional amount at the
rate of 0.1% of the payable contributions per day of delay without the
need for warning or notice by the authorities.
To sum it up, the GPSSA is a significant initiative put forward to protect the
rights of citizens as it applies to all companies in the UAE, including free
zones, and requires that all qualified employees – UAE or GCC nationalities –
be registered with the GPSSA. In order to develop a new long-term strategy in
the evolving social environment of the UAE, social contribution has been
made mandatory with the goal of serving UAE residents and families.
UAE Payroll Process
The process of payroll is a little complicated and time-consuming; hence it is
always recommended outsourcing your company’s payroll function.
Outsourcing payroll will ensure the assistance of a team of trained payroll
professionals and it frees up the time of the organization, helping them focus
on other projects that add value to their business. One should be extra vigilant

5. while selecting their payroll provider, as payroll data is highly sensitive, and
one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your
payroll complexities through customized strategies. We take care of our
clients’ entire payroll cycle that includes preparation of payroll reports,
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including Gratuity, pension funds, an online portal for accessing payslips, and
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Disclaimer
Whilst every effort has been made to ensure the accuracy of this information,
HLB HAMT will not accept any liability arising out of errors or omissions.
Please note that this blog is not all-inclusive. Our guidance is designed only to
give general information on the issues/topics covered. It is subject to change
and is not intended to be a comprehensive summary of all laws which may be
applicable to your situation, treat exhaustively the subjects covered, provide
legal advice, or render a legal opinion.
General Pension and Social Security Authority (GPSSA) in
the UAE
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com