GPSSA sets out how pension contributions are calculated for government and private employees
By Catherine Smith GST 2 min read
GPSSA explains that government pension contributions follow each month's salary, while private-sector contributions stay on the January figure all year.
The General Pension and Social Security Authority (GPSSA) said on Thursday that government employers must base monthly pension contributions on each month’s actual salary, while private-sector employers use the salary approved in January for the whole year.
The authority urged employers in both sectors to follow the rules for insured employees, and said accurate calculation and timely payment are core employer responsibilities.
For government employees, any change to the contribution salary is reflected from the month it takes effect.
GPSSA gave an example: a salary of AED 20,000 from January to March that rises to AED 22,000 in April is charged on AED 20,000 for the first three months and on AED 22,000 from April onwards.
In the private sector, the contribution salary approved in January stays in force until the end of that year, even if the employee’s pay changes.
Under the private-sector example, a contribution salary of AED 15,000 in January that rises to AED 17,000 in July keeps contributions on AED 15,000 until December. The salary approved the following January then becomes the basis.
| Case | Basis for contributions |
|---|---|
| Government employee, pay change in April | New salary from April |
| Private-sector employee, pay change in July | January salary until December |
| Private-sector employee joining after January | Salary at joining until December |
There is one exception. Private-sector salary increases approved retroactively from January of the same year may be reflected, with payments for earlier months recalculated and adjusted.
Private-sector employees who join an establishment after January are charged on their salary at joining. That figure stays unchanged until December and is reassessed the following January.
GPSSA stressed the need to use the correct contribution salary. Employers should update salary information through the Ma’ashi digital platform, following the procedures for their sector, so that records are accurate and employees’ pension and social security rights are protected.
On deadlines, the authority said contributions fall due at the end of the relevant month and may be paid until the 15th of the following month.
Delayed payments incur additional amounts prescribed by law. The authority did not give a figure for these.
GPSSA also said contributions are payable for every period of service completed by UAE nationals covered by the pension law, regardless of how long that service lasts.
These contributions are included in the insured employee’s social insurance record, which protects their rights under the applicable legislation and its eligibility requirements.
The clarification covers employers in both sectors. Salary changes for insured employees are recorded through Ma’ashi.
