VoxxArrive · UAE onboarding topic
GPSSA Pension & Social Security: An Employer's Guide for UAE & GCC Nationals
The General Pension and Social Security Authority (GPSSA) runs the UAE's mandatory pension scheme for UAE nationals only - expatriate staff are excluded (they receive end-of-service gratuity instead). Under Federal Decree-Law No. 57 of 2023, effective 31 October 2023, total monthly contributions are 26% of the pensionable ("contribution account") salary for new entrants: 11% from the employee and 15% from the employer, with the government paying 2.5% on the employer's behalf for private-sector Emiratis earning under AED 20,000. Employers must register each Emirati within 30 working days of joining and remit contributions between the 1st and 15th of each month.
Steps
- Confirm who must be enrolled - Enrolment is mandatory for UAE national employees only. Expatriate staff are NOT covered by GPSSA - they accrue end-of-service gratuity instead. GCC nationals (Saudi, Bahrain, Kuwait, Oman, Qatar) working in the UAE are covered under the GCC Unified Protection Extension, where the employer registers them and contributions are calculated under the employee's HOME-country pension law, not the UAE rates.
- Register the establishment with GPSSA - An employer with at least one Emirati (or GCC national) employee must be registered with GPSSA. Required documents for private-sector firms include the UAE trade/business licence, the Memorandum of Association, and the owner/partner's Emirates ID or passport. Firms headquartered in Abu Dhabi register with ADPF instead.
- Register each Emirati employee within 30 working days - The employer must register a new Emirati employee within 30 working days of the joining date. Late registration attracts an additional amount of AED 200 for each day of delay, multiplied by the number of insured individuals affected (per the GPSSA employers-registration service page).
- Identify the correct contribution rate (which law applies) - Employees who FIRST joined the workforce on or after 31 October 2023 fall under Federal Decree-Law No. 57 of 2023 (total 26%). Employees already insured with GPSSA before that date remain under Federal Law No. 7 of 1999. Under the 2023 law: employee 11%, employer 15%; for private-sector Emiratis earning under AED 20,000 the government pays 2.5% on the employer's behalf, so the employer effectively pays 12.5%. Under the older 1999 law the employee share is 5% (with employer 15% / 12.5% + 2.5% government subsidy).
- Apply the contribution account (pensionable) salary rules - Contributions are calculated on the 'contribution account salary' - basic salary plus cost-of-living, social/children allowance and housing allowance. For private-sector Emiratis under the 2023 law this base must be at least AED 3,000 and no more than AED 70,000 per month. Government-sector and Abu Dhabi caps are higher (up to AED 100,000).
- Remit contributions monthly, 1st to 15th - Deduct the employee's share from payroll, add the employer's share, and pay GPSSA between the 1st and the 15th of each month for the preceding month. Missing the 15th triggers an automatic late-payment charge (multiple advisers cite 0.1% per day on the outstanding amount from the 16th; see 'unverified' for sourcing).
Timeline
Establishment registration should be completed before or as your first Emirati joins; each new Emirati employee must be registered within 30 working days of joining. Contributions are then a recurring monthly obligation, payable between the 1st and 15th of each month for the previous month.
Cost & fees
For new entrants under Federal Decree-Law 57/2023: total 26% of the contribution account salary - employee 11%, employer 15%. For private-sector Emiratis earning under AED 20,000 the government pays 2.5%, reducing the employer share to 12.5% (total to the employee's account stays 26%, i.e. employee 11% + employer 12.5% + government 2.5%). Employees insured before 31 Oct 2023 remain under Law 7/1999 (employee 5%). Contribution base: private sector min AED 3,000, max AED 70,000/month. Late registration: AED 200 per day per insured.
Your task slice
3 of the 57 onboarding tasks apply here.
Register UAE/GCC national with GPSSA (within one month of joining)
GPSSA registration
Confirm GPSSA registration completed within one month of joining (nationals)
Update Emiratisation/Nitaqat headcount records with MOHRE (if Emirati; counts only if GPSSA + WPS)
Some figures on this page vary by jurisdiction, zone or nationality, or could not be independently confirmed from a public source at time of writing - confirm the current figure with the regulator before relying on it.
Sources
- The Official Portal of the UAE Government (u.ae) - Pensions and social security for UAE citizens (26% total, 11% employee, 15% employer, 2.5% government subsidy under AED 20,000; Federal Decree-Law 57/2023; caps 70,000/100,000)
- GPSSA - Insured's contribution payment may be extended to the 15th day of each month; contribution account salary definition (1st–15th payment window; salary components; AED 3,000–70,000 private cap)
- GPSSA - Employers Registration service (who must register; 30 working days deadline; AED 200/day per insured late-registration charge; required documents)
- Mercans - GPSSA Introduces a New Pension Law (Federal Law 57/2023 effective 31 Oct 2023; sector rate table; applies to new hires; pre-2023 insured remain under Law 7/1999)
- Zoho Payroll Academy - GPSSA & ADPF Pension guide (old 1999-law employee rate of 5%; 0.1%/day late-payment penalty from the 16th; GCC Unified Protection Extension mechanics)
Frequently asked
Do we register expatriate employees with GPSSA?
No. GPSSA covers UAE nationals only. Expatriate staff are excluded from the pension scheme and instead accrue end-of-service gratuity under the UAE Labour Law. Registering or contributing for expats is not applicable.
What contribution rate applies to a UAE national we hired in 2024?
Because they entered service after 31 October 2023, Federal Decree-Law No. 57 of 2023 applies: 26% total - 11% deducted from the employee and 15% paid by the employer. If they earn under AED 20,000 in the private sector, the government pays 2.5% of that employer share, so you pay 12.5%.
How do GCC nationals differ from Emiratis?
GCC nationals (Saudi, Bahrain, Kuwait, Oman, Qatar) are covered under the GCC Unified Protection Extension, not the standard GPSSA rates. You still register and remit for them, but contributions follow their home country's pension law and rates, and their UAE service counts toward their home-country pension.
When are contributions due and what happens if we are late?
Monthly contributions are payable from the 1st to the 15th of each month for the prior month. Late registration of an employee carries an additional AED 200 per day per insured. Late contribution payment triggers an automatic daily charge from the 16th (widely reported by advisers as 0.1% per day of the outstanding amount).
We are based in Abu Dhabi - is it still GPSSA?
No. Emiratis employed by Abu Dhabi-headquartered entities are administered by the Abu Dhabi Pension Fund (ADPF), not GPSSA. Sharjah also has its own arrangements for certain government bodies. GPSSA covers federal government and private-sector employers outside those Abu Dhabi/Sharjah carve-outs.