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UAE firms must now pay full Emirati pension share upfront
The new regulation requires private sector employers to remit the full 26% pension contribution monthly, including the employee's share, directly to the GPSSA.
A new UAE policy requires private sector employers to pay the entire pension contribution for their Emirati staff, including the employee's portion, directly to the General Pension and Social Security Authority (GPSSA) each month. This change simplifies the process but places a new administrative and financial responsibility on companies.
A new directive from the UAE government changes how pension contributions for Emirati employees in the private sector are managed. Effective immediately, employers are now responsible for remitting the full 26% contribution to the General Pension and Social Security Authority (GPSSA) every month, which includes the portion previously deducted from the employee's salary. This policy aims to ensure timely and accurate pension payments, safeguarding the long-term financial security of UAE nationals. ## What changed? Previously, the 26% pension contribution for Emiratis was split. Employers contributed 15%, the Emirati employee contributed 5% (deducted from their salary), and the UAE government contributed 6%. While the total percentages remain the same, the mechanism has changed. Under the new rule, employers must now pay the entire 26% to the GPSSA at the start of each month. They are then required to deduct the employee's 5% share from their monthly salary. This effectively means companies are fronting the employee's contribution and then reimbursing themselves. This payment must be made for the registered Emirati employee based on their actual salary as stated in the employment…