Pension Regulations and Guidance for GCC Nationals in the UAE: What employers need to know
August 22, 2022
By: Manu George
Retirement pension benefits and insurance initiatives are implemented by governments across the world to ensure the well-being of their citizens. The Gulf Cooperation Council (GCC) countries, in their coordinated effort to provide retirement allowances, have implemented a pension program for their citizens working in any of the member states. This provides those citizens working in the GCC countries with greater geographical employment opportunities, while accruing pension benefits and enriching their economic and social experience.
A focus on the UAE
In the UAE, the General Pension and Social Security Authority (GPSSA) is responsible for administering pension programs for Emiratis working in or retired from the government, semi- government, or private sectors in the Dubai, Ajman, Ras Al Khaimah, Fujairah and Um Al Quwain Emirates. GPSSA also manages insurance coverage for Emiratis working outside the UAE in any of the GCC countries. Abu Dhabi and Sharjah have established the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) and Sharjah Social Security Fund (SSSF) respectively to administer the pension for nationals working in the emirate.
Every GCC national working in any establishment in the UAE, including in the various free zones, should be registered by their employer with GPSSA. GPSSA facilitates the registration and de-registration of GCC nationals working in the UAE. This means that the employees set themselves up and are linked to the pension file in the country of origin.
In respect to GCC nationals working in the UAE, the GPSSA acts as a mediator to manage the pension program. GPSSA has also introduced an online portal to manage UAE and GCC pension applications. Employers must register themselves with the GPSSA to obtain a registration number before enrolling the employee into the pension scheme. It is the employer’s obligation to ensure that the employee is enrolled within one month from the employment commencement date.
The pension authorities in each of the GCC member countries have their own portals as well. An employer may request portal access once the employee has been enrolled on the pension program. The portal gives the employer a snapshot of active employees, their monthly contribution, account statement and payment history.
Once an employee is registered with the pension program through GPSSA, the employer is responsible for paying contributions to the employee’s fund. The level of contribution and any applicable caps would depend on the employee’s nationality, as each of the GCC states have different contribution requirements. GPSSA does not accept pension contribution for GCC nationals working in the UAE. Instead, each of the GCC states have partnered with = a UAE bank and the employer will make the contribution by local transfer to a UAE bank account.
The contribution calculations for each of the GCC member countries are below.
Country |
Pension Authority |
Employer contribution |
Employee contribution |
Total contribution |
Bahrain |
Social Insurance Organization (SIO) (effective May 2022) |
11.0% |
6.0% |
17.0% |
Kuwait |
Public Institution for Social Security (PIFSS) |
11.0% |
7.5% |
18.5% |
Oman |
Public Authority for Social Insurance (PASI) |
10.5% |
7.0% |
17.5% |
Qatar |
General Retirement and Social Insurance Authority (GRSIA) |
10.0% |
5.0% |
15.0% |
Saudi Arabia |
General Organization for Social Insurance (GOSI) |
9.0% |
9.0% |
18.0% |
United Arab Emirates |
General Pension and Social Security Authority (GPSSA) |
12.5% |
5.0% |
17.5% |
Under the law, employers could be fined for overdue contributions or late registration of GCC nationals into the pension scheme. In addition to fines, the labour authority portal could be blocked as well.
What do employers need to know?
A few measures employers can take to navigate the complex process include:
- register employees within the time specified by the relevant country pension authority;
- when the company has multiple entities in the country, ensure employees are registered in the correct entity;
- make timely and accurate monthly contributions to the correct entity associated bank account to avoid non-compliance; and
- conduct regular audits to ensure compliance is maintained, as unresolved matters could result in significant fines in the future.
Need to know more?
For further information, please contact Manu George at [email protected]. This blog was published on Monday, 22 August 2022, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please visit our dedicated COVID-19 site, subscribe to our alerts and follow us on LinkedIn, twitter, Facebook and Instagram.