GPSSA To Enforce Late Payment Penalties On Employers Of GCC Nationals In UAE From July 2025

The General Pension and Social Security Authority (GPSSA) has called on employers to promptly pay contributions for GCC nationals employed in the UAE. These contributions are vital under the Unified Protection Extension System, ensuring GCC nationals working abroad receive equivalent social security benefits as in their home country.

Starting 1st July 2025, GPSSA will impose penalties on employers who delay contributions for GCC national employees. These penalties align with UAE federal pension laws and are considered a rightful claim by the employee's home country pension authorities.

The Protection Extension System mandates that employees register GCC nationals in both government and private sectors. Contributions must be made according to the insurance system of the employee's home country. Employers should not exceed their contribution share in the host country, with any excess borne by the employee.

Contributions are due on the first day of the month following the period they cover, with a grace period until the 15th of that month. For instance, July 2025 contributions must be paid between 1st August and 15th August 2025. A daily penalty of 0.1 percent applies from the 16th for late payments, without prior notice.

This decision enforces Article 12 of the Protection Extension System Law, reflecting outcomes from the 23rd meeting of GCC civil retirement and social insurance agency heads. The article requires host country pension authorities to pursue delinquent employers legally to collect contributions and penalties for the employee's home country pension authority.

The system was established under Cabinet Resolution No. 18 of 2007 to regulate social security protection for GCC nationals working outside their home countries within any GCC member state. GPSSA is responsible for its implementation in the UAE.

Employers must ensure timely payments to avoid penalties and support their employees' social security rights across borders. This initiative underscores a commitment to fair treatment and compliance with regional agreements.

With inputs from WAM