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ABU DHABI: The General Pension and Social Security Authority (GPSSA) called on the UAE-based entities to register their employees from the Gulf Cooperation Council (GCC) countries in the unified system for extending insurance protection.
The authority explained that it includes those employed in the government and private sectors, free zones, and the hotel and tourism sector.
Registering the GCC employees in the UAE is mandatory according to Law No.18, the UAE Cabinet issued on 22nd July, 2007, to regulate the provisions of insurance protection for Gulf citizens working in civil entities in any GCC country, the GPSSA said today.
"The GPSSA has been entrusted to implement the system for Emiratis working in the GCC region and for the GCC citizens working in the UAE.
"According to the system, a Gulf citizen who works in any of the GCC countries enjoys social insurance (registration, contribution and disbursement of his/her insurance rights) as if he/she were working in their home country. For the GCC employee looking to receive insurance, they should meet the requirements of the pension and social security law in their home country, given that they are GCC nationals and work for a civil entity."
The registration mechanism is based on the pension system in the country where the employee works, in coordination with the pension authority in their home country. The contributions should not exceed the employer’s share determined in the country where they are located.
Accordingly, the UAE-based government entities bear 15 percent in contributions for the GCC nationals and the private sector pays 12.5 percent. Therefore, any differences in contribution amounts, based on the requirements of the pension authority in the employee’s home country, should be paid by the latter.
"Employers are responsible for transferring the employee’s contribution on a monthly basis to the bank account of the pension authority in the employee’s home country," the GPSSA explained.
"The protection extension system provides the advantage of adding previous service periods (including service periods in their home country) to the employee, according to the conditions of adding service periods in their home country’s pension authority.
"Employers are also required to pay the end-of-service gratuity for their GCC employees in accordance with the civil service regulations or applicable labour laws for the periods prior to the application of the system’s provisions."
The General Pension and Social Security Authority of the UAE affirmed that this system does not conflict with other rights or benefits entitled to the employee, according to employee-employer regulations before the issuance of this decision.