Late Payment Exemption Now Over For October And November 2024 In UAE: GPSSA

The General Pension and Social Security Authority (GPSSA) has completed the extended period for paying contributions for October and November 2024. This extension was previously communicated to entities in the UAE. Employers were exempted from late payment fees for these months, but the GPSSA urged timely payments to avoid penalties.

In October 2024, the Ma’ashi platform issued 15,441 invoices. Of these, 13,334 invoices (86.3%) received approval, and 12,870 (83.3%) were paid. For November, 15,359 invoices were issued with 13,544 (88.1%) approved and 12,998 (84.6%) paid. The GPSSA highlighted that late payments incur a penalty of 0.1% of the due amount per day without prior notice.

Contributions are due from the first day of the month following the month they relate to, with an extension until the 15th of that month. According to Federal Law No.7 of 1999 on pension and social security, insured employees in federal, government, and private sectors contribute 20% of salaries—5% by employees and 15% by employers—while the government covers an additional 2.5% for Emiratis in the private sector.

New Regulations for Recent Workforce Entrants

Federal Law No.57 of 2023 introduces new contribution rates for employees entering the workforce as of October 31st, 2023. These rates are set at 26% for federal, government, and private sectors: employees contribute 11%, employers contribute 15%, while the government continues to cover an additional 2.5% for Emiratis in the private sector earning below AED20,000.

Employers are encouraged to adhere strictly to these guidelines to ensure compliance with regulations and avoid financial penalties associated with delayed payments. The GPSSA remains committed to facilitating smooth transactions through platforms like Ma’ashi while ensuring all parties meet their obligations efficiently.

With inputs from WAM