emirates7 - The General Pension and Social Security Authority (GPSSA) has called on employers in the UAE to ensure that they pay social security contributions on time for GCC nationals employed in the country.
These contributions fall under the Unified Protection Extension System, which ensures that GCC nationals working in any of the GCC countries receive social security benefits equivalent to those they would get in their home countries.
Starting from 1 July 2025, GPSSA will impose penalties on employers who fail to pay these contributions on time. The fines will be calculated based on the timelines set by UAE federal pension laws and are considered a legitimate claim by the pension authorities in the employee’s home country.
Contributions must be paid by the 15th of the month following the salary period. For instance, July 2025 contributions should be submitted between 1 August and 15 August 2025. Any delay beyond this date will incur a daily fine of 0.1% of the unpaid amount, effective from the 16th of the month, and will be enforced without prior notice.
This move enforces Article 12 of the Protection Extension System Law, following the recommendations of the 23rd meeting of GCC civil retirement and social insurance officials. This article authorizes the host country’s pension body to legally pursue overdue employers and collect both the contributions and related fines on behalf of the employee’s home country.
The Protection Extension System is mandatory for both public and private sector employers, who must register their GCC national staff and pay contributions based on the home country’s insurance regulations. The employer’s contribution should not exceed what they would normally pay in the UAE; if the home country’s rate is higher, the employee must cover the difference.
This system was introduced under Cabinet Resolution No. 18 of 2007 to provide unified social security protection for GCC citizens working in member states other than their own, and the GPSSA is responsible for its implementation in the UAE.
These contributions fall under the Unified Protection Extension System, which ensures that GCC nationals working in any of the GCC countries receive social security benefits equivalent to those they would get in their home countries.
Starting from 1 July 2025, GPSSA will impose penalties on employers who fail to pay these contributions on time. The fines will be calculated based on the timelines set by UAE federal pension laws and are considered a legitimate claim by the pension authorities in the employee’s home country.
Contributions must be paid by the 15th of the month following the salary period. For instance, July 2025 contributions should be submitted between 1 August and 15 August 2025. Any delay beyond this date will incur a daily fine of 0.1% of the unpaid amount, effective from the 16th of the month, and will be enforced without prior notice.
This move enforces Article 12 of the Protection Extension System Law, following the recommendations of the 23rd meeting of GCC civil retirement and social insurance officials. This article authorizes the host country’s pension body to legally pursue overdue employers and collect both the contributions and related fines on behalf of the employee’s home country.
The Protection Extension System is mandatory for both public and private sector employers, who must register their GCC national staff and pay contributions based on the home country’s insurance regulations. The employer’s contribution should not exceed what they would normally pay in the UAE; if the home country’s rate is higher, the employee must cover the difference.
This system was introduced under Cabinet Resolution No. 18 of 2007 to provide unified social security protection for GCC citizens working in member states other than their own, and the GPSSA is responsible for its implementation in the UAE.