Important Updates
Important Updates
May 29, 2025 | United StatesBloomberg: Harvard Dragged Deeper Into Trump's 'America First' Visa Fight
May 30, 2025 | BelarusBelarus: More Onerous Requirements for Employers of Temporary Residents Forthcoming
May 30, 2025 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 30, 2025 | United KingdomSpace-Comm: The Rapid Expansion of the Space Sector, Expected to Reach a Value of $1.8 Trillion by 2035, Marks the Beginning of a New Era in Space Exploration and Innovation
May 30, 2025 | 🌐Worldwide/Russia: Update on Visa Suspensions for Russian and Belarusian Nationals
May 29, 2025 | United StatesBloomberg: Harvard Dragged Deeper Into Trump's 'America First' Visa Fight
May 30, 2025 | BelarusBelarus: More Onerous Requirements for Employers of Temporary Residents Forthcoming
May 30, 2025 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
May 30, 2025 | United KingdomSpace-Comm: The Rapid Expansion of the Space Sector, Expected to Reach a Value of $1.8 Trillion by 2035, Marks the Beginning of a New Era in Space Exploration and Innovation
May 30, 2025 | 🌐Worldwide/Russia: Update on Visa Suspensions for Russian and Belarusian Nationals
May 29, 2025 | United StatesBloomberg: Harvard Dragged Deeper Into Trump's 'America First' Visa Fight
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcastsVideos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationImmigration Matters: Your U.S. Compliance RoadmapFragomen Consulting EuropeAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts
  • Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Fragomen Consulting Europe
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

Understanding the GCC Pension Framework: A Guide to Monthly Contributions, Employer Responsibilities and Compliance

May 2, 2025

Understanding the GCC Pension Framework: A Guide to Monthly Contributions, Employer Responsibilities and Compliance

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

By: Gufran Al Bash

The social security system in the Gulf Cooperation Council (GCC) is a pension saving scheme established to help GCC nationals have a long-term retirement plan and income. Enrollment in the scheme is legally mandatory for all eligible GCC national employees in any GCC country.

The program requires a monthly deduction from the employee's pensionable salary and a monthly contribution from the employer. The government of the home country will then contribute another percentage, and the summation of these monthly amounts will be saved towards the employee's pension salary.

According to a Fragomen survey conducted in 2024, more than 60% of employers find that the most significant struggle when managing the pension programs is dealing with the monthly contributions. This comes as a result of the increased complexity of this framework, especially with the increasing volumes of hired GCC national talents in response to increased localization ratios in the region and the stricter implementation of regulations by pension authorities.

Complexity of pension contributions management

Many factors lead UAE employers to struggle with the monthly contribution segment of the process, increasing the risk of non-compliance with monthly pension contributions, including:  

      • Employers with operations across multiple emirates and a workforce comprising various GCC nationalities must navigate compliance with nine distinct pension authorities in the regionβ€”three of which are based in the UAE alone.
      • In the UAE, for example, many programs/schemes (WPS, Nafis and DEWS eligibility for DIFC employers) must be considered when successfully managing the social security program.
      • Ongoing regulatory changes to contribution ratios and payment processes require employers to stay continuously informed and adapt quickly to remain compliant.
      • This deadline-driven process can easily result in penalties if it is not correctly tracked.

Considering the above, non-compliance with the monthly contribution payment may result in serious consequences, such as financial penalties, portal blocks, difficulties in quota approvals, warning letters and court cases.

Monthly contributions calculation, payment and tracking

Many factors should be considered when calculating the monthly contributions for GCC national employees. These factors are based on the employee's nationality, the pension authority with which the employee is registered and the regulations that apply.

Furthermore, elements like pensionable salary segments, salary caps, employee deduction ratios, employer deduction ratios, or unpaid leaves should all be analyzed when calculating the monthly contributions.

Monthly contribution payments are a key part of program management. When transmitting payments to pension authorities, the grace period, payment method, bank account number, payment notification and allocation must be accurate for successful payment. Ultimately, it is essential to archive the proof of payment.

Compliance management and best practices

Employers have significant opportunities to strengthen compliance with pension regulations through proactive measures. In the GCC region, pension processes are all deadline-driven, including the contributions payment process. Employers are expected to make timely and accurate monthly contributions to correct bank accounts. Updating employees' salaries on an annual basisβ€”and within the specified grace period per nationalityβ€”can also help keep clear records with pension authorities.

Employers should also incorporate effective measures into their internal processes and adopt best practices that can help avoid consequences of incompliance. Remaining up to date on the most recent contribution ratios and bank accounts is crucial to always paying the correct amounts to the correct bank accounts. It is also beneficial to have a mechanism that ensures receipt of the paid amounts by pension authorities. This can be as simple as registering the entity with the online portals of all GCC pension authorities to have complete visibility of the payment receipt and allocation or by sending monthly payment notifications to pension authorities after each transaction to allocate the paid amounts properly.

Another measure that can help payroll teams keep a clear record with pension authority is paying against an invoice whenever possible. Furthermore, always review your invoices to confirm that the contributions you paid have been received and allocated. In addition, regular audits should be conducted to ensure compliance is maintained, as unresolved matters could result in significant fines in the future.

Managing the payments segment of the social security program while maintaining full compliance can be overwhelming to GCC employers, but it is achievable. It is strongly recommended that employers review their internal processes regularly and ensure their HR and payroll teams have access to the required knowledge and tools that support them in managing the pension program, including contributions payment compliantly and efficiently. 

Need to know more?

For questions related to managing the pension and social security programs, please contact Social Security Manager Gufran Al Bash at [email protected].

This blog was published on 2 May 2025, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to ourβ€―alertsβ€―and follow us onβ€―LinkedIn, Twitter, Facebookβ€―andβ€―Instagram. 

Country / Territory

  • United Arab EmiratesUnited Arab Emirates

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Gufran Al Bash

Payroll & Social Security Services Manager

Dubai (DIC), United Arab Emirates

Email

[email protected]

T:+971 56 116 9184

Related offices

  • Dubai (DIC)
  • Dubai (DIFC)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Media mentions

Space-Comm: The Rapid Expansion of the Space Sector, Expected to Reach a Value of $1.8 Trillion by 2035, Marks the Beginning of a New Era in Space Exploration and Innovation

Partner Charlotte Wills and Director Kelly Hardman co-hosted the Space Law Legal Symposium with DLA Piper, highlighting immigration’s role in space sector growth.

Learn more

Media mentions

Bloomberg: Harvard Dragged Deeper Into Trump's 'America First' Visa Fight

Partner Daniel Pierce highlighted the challenges US universities face under new visa restrictions.

Learn more

Blog post

Unlocking Talent: Why Hiring Graduates on Immigration Permissions Is a Strategic Business Move

Senior Immigration Programme Consultant Salem Barakat shares how hiring graduates on immigration permissions is a strategic business move that unlocks talent and drives innovation.

Learn more

Blog post

A1 Certificate Fraud: Key Takeaways from the 2025 ECJ Decision

Director Wim Cocquyt and Senior Immigration Consultant Marina Ocariz discuss key takeaways from the 2025 ECJ decision on A1 certificate fraud.

Learn more

Media mentions

Dubai Eye: Managing Partner, Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI Workforce and Talent Mobility

Managing Partner for the Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI talent shortage and how immigration policies are helping attract talent to the region.

Learn more

Blog post

La Naturalisation française par Décret : Des règles strictes et une exigence accrue de conformité

Senior Immigration Manager Géraldine Renaudière discusses France's tightening of the naturalization-by-decree process by enforcing stricter language, legal and financial requirements.

Learn more

Media mentions

The Irish Times: β€˜Without People to Build Homes, It Won’t Happen’: Construction Workers Decry Shortage of Tradespeople

Partner Ángel Bello CortΓ©s highlights Ireland’s respected work permit system and suggests a sector-specific permit to attract more non-EEA construction workers.

Learn more

Media mentions

Yorkshire Post: Yorkshire Businesses Should Prepare for Sweeping Immigration Rule Changes

Practice Leader Kathleen O’Donnell highlights how proposed UK immigration reforms could impact businesses in Yorkshire.

Learn more

Media mentions

Business Insider: The Death of the Digital Nomad

Partner Charlotte Wills notes that while full-time, long-term remote work might become less common, many professionals continue to work from abroad through more structured, short-term arrangements.

Learn more

Video

How to Stay in France After Graduation: Immigration Options for International Students

In this video, Immigration Consultant Laura Varon Osorio walks you through everything you need to know about staying in France after graduation. Whether you’re looking to work, start a business or transition to a new immigration status, this guide covers key immigration pathways for international students.

Learn more

Media mentions

American Bar Association's How Things Work: The Legal Edition: F-1 Student Visa Revocations

Partners Michelle Jacobson and Sarah Peterson discuss recent SEVIS terminations and visa revocations and explore what these developments may mean for international students and universities.

Learn more

Media mentions

Classical Music: The Immigration Hurdles Facing UK Orchestras in Europe

Senior Immigration Programme Manager Louise Collins, Senior Manager Sean Rhodes and Manager Andreia Ghimis explore the touring challenges UK orchestras face in Europe and discuss ways to ease mobility barriers.

Learn more

Media mentions

Space-Comm: The Rapid Expansion of the Space Sector, Expected to Reach a Value of $1.8 Trillion by 2035, Marks the Beginning of a New Era in Space Exploration and Innovation

Partner Charlotte Wills and Director Kelly Hardman co-hosted the Space Law Legal Symposium with DLA Piper, highlighting immigration’s role in space sector growth.

Learn more

Media mentions

Bloomberg: Harvard Dragged Deeper Into Trump's 'America First' Visa Fight

Partner Daniel Pierce highlighted the challenges US universities face under new visa restrictions.

Learn more

Blog post

Unlocking Talent: Why Hiring Graduates on Immigration Permissions Is a Strategic Business Move

Senior Immigration Programme Consultant Salem Barakat shares how hiring graduates on immigration permissions is a strategic business move that unlocks talent and drives innovation.

Learn more

Blog post

A1 Certificate Fraud: Key Takeaways from the 2025 ECJ Decision

Director Wim Cocquyt and Senior Immigration Consultant Marina Ocariz discuss key takeaways from the 2025 ECJ decision on A1 certificate fraud.

Learn more

Media mentions

Dubai Eye: Managing Partner, Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI Workforce and Talent Mobility

Managing Partner for the Middle East and Africa Murtaza Ali Khan discusses the UAE’s AI talent shortage and how immigration policies are helping attract talent to the region.

Learn more

Blog post

La Naturalisation française par Décret : Des règles strictes et une exigence accrue de conformité

Senior Immigration Manager Géraldine Renaudière discusses France's tightening of the naturalization-by-decree process by enforcing stricter language, legal and financial requirements.

Learn more

Media mentions

The Irish Times: β€˜Without People to Build Homes, It Won’t Happen’: Construction Workers Decry Shortage of Tradespeople

Partner Ángel Bello CortΓ©s highlights Ireland’s respected work permit system and suggests a sector-specific permit to attract more non-EEA construction workers.

Learn more

Media mentions

Yorkshire Post: Yorkshire Businesses Should Prepare for Sweeping Immigration Rule Changes

Practice Leader Kathleen O’Donnell highlights how proposed UK immigration reforms could impact businesses in Yorkshire.

Learn more

Media mentions

Business Insider: The Death of the Digital Nomad

Partner Charlotte Wills notes that while full-time, long-term remote work might become less common, many professionals continue to work from abroad through more structured, short-term arrangements.

Learn more

Video

How to Stay in France After Graduation: Immigration Options for International Students

In this video, Immigration Consultant Laura Varon Osorio walks you through everything you need to know about staying in France after graduation. Whether you’re looking to work, start a business or transition to a new immigration status, this guide covers key immigration pathways for international students.

Learn more

Media mentions

American Bar Association's How Things Work: The Legal Edition: F-1 Student Visa Revocations

Partners Michelle Jacobson and Sarah Peterson discuss recent SEVIS terminations and visa revocations and explore what these developments may mean for international students and universities.

Learn more

Media mentions

Classical Music: The Immigration Hurdles Facing UK Orchestras in Europe

Senior Immigration Programme Manager Louise Collins, Senior Manager Sean Rhodes and Manager Andreia Ghimis explore the touring challenges UK orchestras face in Europe and discuss ways to ease mobility barriers.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

Β© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.