UAE Payroll Outsourcing Alert
ADRPBF – Change in Minimum and Maximum Pensionable Salary Effective January 2021 for Private Sector Employees.
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:
|Contribution||Employee rate||Employer rate||Monthly Minimum amount||Monthly Maximum amount (AED)||Calculation base|
|Social Insurance||5.0%||15%||AED 6,000.00||AED 200,000.00||January total contractual salary|
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.
Also read: Payroll in UAE
View PDFMercans Statutory Alert in UAE Change in Minimum and Maximum Pension Salary