ADRPBF – Change in Minimum and Maximum Pensionable Salary Effective January 2021 for Private Sector Employees.

Mercans, a leading UAE payroll outsourcingPEO/GEO, employee leasingrecruitment, and BPO services provider, has published a UAE payroll outsourcing alert. Subscribe to Mercans’ UAE payroll outsourcing alerts to ensure that you are always up-to-date with the latest regulatory changes in UAE’s labor and payroll compliance requirements.

The Abu Dhabi Retirement Pension and Benefits Fund (ADRPBF) manages the social security

contributions for UAE nationals in the emirate of Abu Dhabi. Effective January 2021, Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) has amended the pensionable salary for private sector employees where the pensionable salary must not be less than AED 6,000.00 or more than AED 200,000.00.

The minimum and maximum pensionable salaries on which the 20% social insurance contributions are calculated are as follows:

 

Contributions totaling 20% must be submitted to the fund monthly. These comprise 5% from

the employee (insured) and 15% from the employer or entity. The employer is considered liable towards the fund in paying the monthly contributions within the defined date set by the law, whereas the contributions are due in the beginning of the month following the due month and may be extended until the 20th of the same.

The elements of the Pensionable salary are:

  • Government sector- Basic salary, housing allowance, children allowance, social allowance for the citizens, cost of living allowance or its equivalence and the union allowance.
  • Private Sector-Basic salary and all the allowances paid on a monthly, permanent, and regular basis.

The pensionable salary in the private sector must not be less than AED 6,000.00 or more than AED 200,000.00.

Mercans’ UAE Payroll Outsourcing Solutions

While Mercans’ UAE Payroll Outsourcing alerts will allow you to stay on top of the latest development in UAE’s payroll regulations, you should still get in touch with Mercans’ UAE payroll outsourcing, compliance, PEO/GEO, and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in UAE to Mercans and our UAE payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the UAE regulations.

Download PDF: Mercans Statutory Alert in UAE Change in Minimum and Maximum Pension Salary

Also read: Payroll in UAE