The General Pensions and Social Security Authority stated that Decree Law No. (57) of 2023 applies to citizens entering the workforce for the first time starting from October 31, 2023, with any employer in the federal government or local governments, excluding certain employers. The municipal government of the Emirate of Abu Dhabi and the Emirate of Sharjah, along with private sector employers, excluding those in the Emirate of Abu Dhabi.
The Authority's "Know Your Law" awareness campaign states that insured individuals under Federal Law No. (7) of 1999 for Pensions and Social Security, who switch employers after October 31, 2023, will remain covered by the provisions of Law No. (7) of 1999. Similarly, individuals who received end-of-service benefits or retirees under this law and return to work after October 31, 2023, will also continue to be covered by its provisions.
To represent the insured, the employee must be a citizen of the United Arab Emirates, aged between 18 and 60, and deemed medically fit for work based on an authorized medical assessment.
The official document provided to verify age by the competent authorities and submitted upon initial subscription is considered valid. Any changes to this established age will be accepted if made within one year of the subscription date.
The employer must register the employee within 30 days of joining the service and provide the Authority with the names of those whose services will end within 15 days of the termination date. The employee should ensure that the employer registers them and pays contributions monthly to avoid challenges when ending their service and receiving insurance benefits.
The Authority clarified that it is responsible for distributing pensions and end-of-service benefits to the insured individuals, not the employers. If an individual receives end-of-service benefits directly from the employer, it indicates that the individual was not registered and no contributions were made on their behalf, thus making them ineligible to receive benefits. This service is added later in the process, which is a waste of resources.
The Authority indicated that when the insured joins the employer, they are considered insured under the laws enforced by the Authority and are assigned an insurance number for all transactions. If the employer finds out that the insured individual has not registered, they are required to retroactively register on their behalf and make the payment. Subscriptions for this period are subject to late fees.
The Authority stated that it is the employer's responsibility to register and subscribe on behalf of the insured, pay the contributions at the approved rates, and any fines resulting from violations will be the employer's responsibility. Ignorance of the law does not excuse the employer from these obligations.
The Authority posted Decree Law No. (57) of 2023 on the Circulars and Laws portion of its website, along with an English translation to assist employers who do not speak Arabic.
