The General Pension and Social Security Authority said that the contributions of the insured in the private sector are paid during the year, based on the salary of the subscription account for the month of January of each year.
And she pointed out that “any increase that occurs in the salary of the insured’s contribution account during the year is not considered, unless it is applied retroactively from the beginning of January of the same year, and if it is not applied retroactively, it is considered in January of the following year.”
The Director of Pensions Operations Department, Muhammad Saqr Al-Hammadi, stated, as part of the awareness campaign that the authority recently launched to raise awareness of the rights and obligations of citizens benefiting from the “Nafes” program, that if an employee joins the service in the private sector after January, his contributions are calculated on the basis of the month in which he joined until January of the new year, which will be the basis for calculating his contributions for the new year.
He pointed out that the employer in the private sector must submit to the Authority in January of each year a statement of the salaries of his workers for this month, and their monthly subscriptions, and to provide the Authority with monthly changes to the number of his workers or their salaries. In the event that such data is not submitted on the specified dates, the contributions shall be calculated on the basis of the last statement submitted to the Authority until the actual due contributions are calculated.
Al-Hammadi stressed the need for the data provided by the employer to be in conformity with the records kept in accordance with the Labor Law, as it is considered the reference in any inspection process conducted by the authority. In the event that the data does not match the actual reality or the records and documents that the employer must keep and submit upon request are not available, the calculation of the due contributions will be based on what is issued by the Authority based on the findings of the inspection results carried out by its concerned department.
And he added that the date for paying the contributions is at the end of the month for which they are due until the beginning of the new month, and it is allowed to pay them until the 15th day of the month following their due, provided that the calculation of delay fines begins after the middle of the month in the event that they are not paid within the specified period.
He pointed out the need for the employer to pay contributions on behalf of the citizens working for him, regardless of the period of their service, even if it was less than a year, because the insured enjoys insurance benefits as soon as he subscribes, and if he is exposed to any risks such as disability, death or occupational injuries during this year, his dues will be paid according to Controls and provisions regardless of the length of service.
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