Dec 18, 2023 2 min read

GPSSA introduces a new pension law

Article Navigation

The General Pension and Social Security Authority (GPSSA) has issued a new pension law no. (57) of 2023 for Emiratis joining work for the first time effective October 31, 2023 with any employer affiliated with the GPSSA.

Entities affiliated with the GPSSA include UAE-based federal and government sector employers, with the exception of government entities in Abu Dhabi and Sharjah, as well as private sector employers, with the exception of entities situetd in Abu Dhabi. Entities whose headquarters are in Abu Dhabi, including their branches in other parts of the UAE, are subject to the Abu Dhabi pension law.

The new law is tabled below:

SectorEmployee shareEmployer shareTotalMinimum salary (AED)Maximum salary (AED)
Government11%15%26%-100,000
Private (contribution account salary less than 20,000 AED)11%12.5%23.5%3,00070,000
Private (contribution account salary more than 20,000 AED)11%15%26%3,00070,000

The GPSSA has provided employer’s (Government and Private sector) the below payment options for the contribution due from October 31,2023:

There will be no penal charges on account of this delay until December 31, 2023.

Insured individuals who presently contribute to the GPSSA prior to October 31, 2023 will continue to be covered by the provisions of the current Federal Law No. (7) of 1999 for pension and social security and its amendments. In other words, should an employee decide to move to a new employer after the law’s effective date, the provisions of this new law will not apply to them.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

Mercans Recommends

View PDF

The General Pension and Social-security Authority (GPSSA) announces the issuance of a new federal law on pension
Size

725.17 KB

Article Navigation

Most viewed posts

View all posts

Avasant Selects Mercans as a Leader in Payroll Business Process Tra...

The meticulous research methodology employed by Avasant included analyzing publicly available information like SEC filings, annual reports, and executive interviews, along with engaging in discussions and market interactions.

Dec 22, 2023 4 min read

Global BPO Leader Infosys Selects Mercans’ Payroll Tech to Power i...

This partnership brings together Mercans' disruptive payroll tech and Infosys' consulting and BPO capabilities to create the most tech advanced and operationally resilient global payroll offering.

Sep 26, 2023 3 min read

Mercans: A Leader in Global Managed Payroll – ISG Provider Lens™ 2023

Payroll solutions and services study meticulously assessed 36 vendors across three distinct quadrants, and Mercans proudly emerged as a frontrunner.

Nov 9, 2023 2 min read