The General Pensions and Social Security Authority said that Decree Law No. (57) of 2023 regarding pensions, which applies to those joining work for the first time with employers registered with the Authority as of October 31, 2023, requires employers to register the insured within one month from the date of their joining the service and to provide the Authority with The names of those whose services end within 15 days at most from the date of the end of their service. In the event of a violation of this, the employer shall bear a fine of 200 dirhams for each day of delay for each insured who has not been registered.
The Authority explained that the conditions for registration for the insured are that the insured must have the nationality of the United Arab Emirates, that his age upon subscription must not be less than 18 years and not more than sixty, and that he must be medically fit to work upon appointment according to an approved medical report.
She indicated that the official document prepared to prove the age issued by the competent authorities in the country and submitted to the Authority upon subscription for the first time will be taken into account, and any amendment to this fixed age will be taken into account if it is made within a period not exceeding one year from the date of subscription.
The Authority stated that once an insured joins an employer subject to the provisions of the Pensions Law, he must register with the Authority and then register on behalf of the insured. These services are available on the Authority’s website within the employer’s services portal.
The employer must pay the contributions due from the insured according to the contribution account salary and not the total salary. These contributions are paid according to the new law at a rate of 26%, of which the insured bears 11% and the employer bears 15%. The government supports citizens whose contributions account salaries are less than 20,000. AED will bear 2.5% of the percentage owed by the employer in the private sector to encourage him to hire citizens.
The employer must pay the contributions on time, as he is obligated to pay them from the first of the month following the month for which they are due. It may be extended until the fifteenth day of this month, and they are non-refundable. In the event of delay in payment, he is obligated to pay an additional amount of (0.1%) of the due contributions. For each day of delay, without the need for notice or warning, and in all cases the additional amount must not exceed the value of the contributions due. The part of the month in which the insured joins work or in which his services end is considered a full month for which contributions must be paid.
The employer is obligated to pay contributions based on real wages. Otherwise, the Pensions Law requires him, in the event of a violation of this, to pay an additional amount of (10%) of the value of the contributions due without warning or prior notification. The Authority’s Board of Directors may determine the cases of exemption from the additional amount and the conditions for total or partial exemption from it. .
The employer must provide the Authority with any statements, data or documents requested within (10) working days for the purposes of verifying the rates of contributions for the insured. If he fails to do so, he is obligated to pay (100) dirhams for each day of delay for each insured. The Authority calculates the contributions according to what it decides in the case of violators.
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