GPSSA clarifies pension contribution rules for government and private sector employers

The General Pension and Social Security Authority (GPSSA) has clarified how monthly pension contributions should be calculated for government and private sector employees.

For government-sector employees, contributions are calculated based on the employee's actual contribution salary each month, with adjustments reflected from the month they take effect. For example, if a government employee's contribution salary is AED20,000 from January to March and increases to AED22,000 in April, contributions for the first three months are calculated on AED20,000 and from April onwards on AED22,000.

Private-sector contributions follow a different approach. They are calculated based on the contribution salary approved in January of each year, which remains applicable throughout the year, even if the employee's salary changes. If a private-sector employee's salary increases from AED15,000 in January to AED17,000 in July, contributions continue to be calculated on AED15,000 until December. Salary increases approved retroactively from January may be reflected in contributions, with previous months recalculated.

Contributions are 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.

GPSSA stressed the importance of using the correct contribution salary and updating salary information through the Ma'ashi digital platform to ensure accurate records and protect employees' pension rights.