GPSSA improves awareness on pension needs as per NAFIS scheme

As part of the federal government program (NAFIS), all private sector businesses are expected to register their Emirati workers with the General Pension and Social Security Authority (GPSSA) within 30 days of their job start date. Similarly, it is the obligation of the employee to ensure that registration is complete within one month of their employment start date.

This, according to GPSSA, is part of the government’s goal to boost the competitiveness and sustainability of UAE citizens over the next five years by enabling them to work in the UAE’s private sector. NAFIS was introduced as part of the ‘Projects of the 50’ initiative, which aims to expedite the UAE’s development path.

Through NAFIS, Emiratis employed in the private sector have access to a variety of options and benefits, including the Emirati Salary Support Scheme, the Pension Programme, the Child Allowance Scheme, the Talent Programme, the Apprentice Programme, the Recruitment Targets, the National Healthcare Programme, the Unemployment Benefit, the Vocational Counselling Programme, and the Job Offers and On-the-job training programme.

Among the programme conditions, private companies with at least 50 employees must achieve their 2 percent Emiratisation target by January 2023; consequently, all private sector entities in the UAE, with the exception of Abu Dhabi, must pay their pension contributions at the beginning of each month, with a grace period permitted until the middle of the month.

After registering with the GPSSA, insured individuals are required to contribute 5 percent of their Contribution Calculation Salary, which the employer deducts from the employee’s salary and transfers to the GPSSA on a monthly basis; in addition to paying 12.5 percent of Contribution Calculation Salary, while the government contributes 2.5 percent as a form of support.

The Contribution Calculation Salary comprises the base salary, bonuses, and allowances (to be paid regularly and monthly) in accordance with the employment contract, and serves as the foundation for annual contribution payments. If the insured begins employment after January, the Contribution Calculation Salary for that month is used to determine contribution payments until the following January.

Certain registration conditions must be met in order for an Emirati to be registered with the GPSSA, begin making monthly contributions, and get covered. This includes the required documents submitted (Passport Copy – Emirates ID Copy – Family Book ID Copy – Birth Certificate Copy or Age Estimation Document – three filled copies of the insured’s “service start form” (service start form no. 1); appointment letter; original copy of employment contract attested by the Ministry of Labor and photocopy of medical examination upon appointment. In addition, the contributor’s age must be between 18 and 60, and they must be able to work at the time of registration.

The GPSSA assigns an insurance number to an employee when his/her employer has completed registration processes and confirmed the necessary documentation.

As seen by GPSSA’s figures for October 2022, in which the number of private sector contributors registered with GPSSA climbed to 21,868 among 7,874 private sector businesses, private sector employers play a crucial part in GPSSA’s insurance work plan.