UAE: New Monthly Pension Contribution for Emiratis in Private Sector Announced
The monthly pension contributions for Emirati employees who have joined the workforce as of October 31, 2023, have increased by 6 percent as per Law No. 57 of 2023. The total contribution salary is now 26 percent.
Under the new rate, an Emirati employee will contribute 11 percent of the amount while the employer pays the rest of the 15 percent. But for Emiratis working in the private sector whose contribution account salaries are less than Dh20,000, a rate of 2.5 percent is paid by the UAE government as a form of support and encouragement to hire Emiratis in the sector.
Earlier, employees contributed 5 percent to their monthly contribution salary, while employers contributed 12.5 percent, and the remaining 2.5 percent was paid by the government.
The General Pension and Social Security Authority of the UAE clarified on Wednesday that government entities and private sector firms that employ UAE citizens are offered two options to pay contributions at the new rates for three months, starting in October and ending in December 2023, as per the new law.
A new circular was sent in November to all public and private sector entities, giving guidelines on ways by which contribution payments are transferred on behalf of Emiratis joining work for the first time as of October 31, 2023 and those who were not previously covered by the provisions of the current Law No. 7 of 1999.
