General Pension and Social Security Authority Dubai (GPSSA)

GENERAL PENSION AND SOCIAL SECURITY AUTHORITY (GPSSA Services)

In the UAE and Dubai, the General Pension and Social Security Authority (GPSSA) manages the UAE nationals pensions and the end-of-service benefits contributions, for those working in government or private sector companies. Sovereign PPG can advise companies on GPSSA services and their requirements with regards to UAE nationals, payroll, end-of-service gratuity and Emiratisation.

What is the General Pension and Social Security Authority (GPSSA)?

The General Pension and Social Security Authority (GPSSA) is the pension fund authority used to manage contributions, pensions and end-of-service benefits for UAE and GCC nationals working in or retired from the government and private sector in the Emirates of Dubai, RAK, Sharjah, Umm Al Quwain, Fujairah, and Ajman. A similar pension scheme exists in Dubai's neighbouring city Abu Dhabi called the Abu Dhabi Pension Fund (ADPF) in which all Abu Dhabi based establishments will have to fulfil the same requirements for their local Emirati employees.

The UAE Emiratisation Requirements

Effective from January 2023, companies will need to meet their Emiratisation quotas. Emiratisation is a UAE government initiative mandating the employment of Emiratis in both the private and public business sectors, to increase their contribution to the national economy. Emiratisation impacts any business with over 20 employees, and there are two classifications; Companies with 20 to 49 employees, and Companies with 50 plus employees. The UAE's goal is to have 10% Emirati private sector employment by 2026, raising Emiratisation for skilled private sector jobs annually by 2% for companies with 50 plus employees, and by 2 employees each year for companies with 20 to 49.

As part of any companies obligations to meet their Emiratisation threshold within the given deadlines, companies also need to make sure that they have their company and their employee registered with either GPSSA or ADPF before that deadline expires.

Does my company need to register with GPSSA?

Employers who have any Emirati or GCC National employees will be required to register the company and its employees with the GPSSA system. In line with the Emiratisation quota criteria, if your business has 20 or more staff, you will be required to hire Emirati employees and therefore will also need to register your UAE National employees in the system.

The fund requires the employer to register and contribute on behalf of the employee within 30 days of the employee receiving their Labour Card. Pension contributions have 2 categorisations:

In Service Active Members: These are members who were first registered with GPSSA prior to October 31, 2023. They are regulated by the Federal Law No.7 of 1999, and their contributions are equal to 20% in total; whereby the Employee contributes 5%, the Employer contributes 12.5%, and the Government contributes 2.5% (this is only if the salary is under AED 20,000. If the salary is more than that amount, the Employer will absorb the additional 2.5% government contribution).
New In Service Members: These are members who were first registered with GPSSA after October 31, 2023. They are regulated by the Federal Decree Law No.57 of 2023, and their contributions equal to 26% in total; whereby the Employee contributes 11%, the Employer contributes 12.5%, and the Government contributes 2.5% (this is only if the salary is under AED 20,000. If the salary is more than that amount, the Employer will absorb the additional 2.5% government contribution)

What is the process and documents required to register with GPSSA?

The first step to registering your Emirati or GCC National employee is to register your company on GPSSA or ADPF. This step requires a high degree of due diligence as GPSSA or ADPF can reject your registration process for misaligned documentation or incorrect information, leading to a loss of, on average, 5 to 7 businesses days. Once all the documents have been submitted for registering the Company, if GPSSA approves, the employee registration process can begin.

Pensions contributions need to be paid directly through the GPSSA Portal. On October 28, 2024, GPSSA launched their new portal; Ma’ashi – which aimed at simplifying and streamlining a lot of the processes involved with pension payments, management of employees, updating information, and more. GPSSA have now also launched an auto direct debit service, whereby all pension contributions will be deducted from the Company bank account on the 3rd of each following month.

How can Sovereign PPG help?

Registering your company and employees with GPSSA can be a complicated, time-consuming process with a lot of administration and document requirements. Sovereign PPG have close ties with key Dubai government departments and therefore can make the GPSSA process more seamless for our clients. We have worked closely with several clients to ensure a quick turnaround time for their company and employee registrations.

GPSSA registration and all Emirati and GCC National employee management requirements fall under our HR services in the UAE. Our HR team would be delighted to schedule a free consultation with you to help you understand your Emiratisation and GPSSA pension requirements.