UAE announces the payment of additional pensions to some workers
The United Arab Emirates (UAE) has announced that selected workers would get increased pension payments.
If businesses maintain their Nafis records in an up-to-date manner, the government of the UAE will pay 2.5% of a citizen's pension contribution.
As part of the Nafis program, the UAE government will be responsible for paying 2.5% of the total contribution amount for Emirati workers who are employed in the private sector, according to a recent announcement made by the General Pension and Social Security Authority (GPSSA).
UAE announces the payment of additional pensions
Payment is made on the condition that information and data for both the entity and the employee are continually updated with GPSSA. This requirement applies to both the entity and the employee.
During the first five years of an insured Emirati's work, the government will pay the difference in salary between their private sector wage and their contribution account salary on behalf of the entity. This is determined by the value of the insured Emirati's salary and any study certificates they have earned.
Since this information is linked to the Ministry of Human Resources and Emiratisation, it is imperative that both the entity and the employee's data be current in the computerized records kept by GPSSA. Only then will it be possible to properly accomplish this goal.
The contribution rate that is due from insured Emiratis employed in both the public and private sectors is twenty percent. Out of this amount, the insured individual is responsible for five percent, while the entity is responsible for fifteen percent. Out of this amount, the United Arab Emirates government contributes two and a half percent as support for Emirati employees who are employed in the private sector.
This indicates that companies in the private sector only pay 12.5 percent of their employees' salaries.
It is essential to keep in mind that the age of an insured individual at the time of their appointment should not be any younger than 18 years old or any older than 60 years old.
In addition to this, the insured person has to provide evidence that they are physically able to do their job, such as a medical report from a medical authority that is recognized by the GPSSA.
All of the provisions of the legislation that pertain to the procedure of registration are applicable to persons who receive nationality in the UAE at any point in time.
It is necessary for registered entities and insured Emiratis to provide their full cooperation in order to benefit from the Nafis program. Insured Emiratis are responsible for ensuring that their monthly contributions are paid on time.
Except for those working in the governments of Abu Dhabi and Sharjah, as well as those employed in the private sector in Abu Dhabi, all Emiratis employed in federal, government, and private sectors in various emirates across the UAE are covered by the provisions of the Federal Law no. 7 of the year 1999 on Pension and Social Security and its amendments. The only exceptions to this rule are employees working in the governments of Abu Dhabi and Sharjah.
