Pension for Emirati employees: Emirati pensions,
for the people who run payroll.
GPSSA contributions for Emiratis in the private sector: the 2023 rates, who pays what, registration and payment deadlines, and Abu Dhabi's own fund.
The short answer
Emiratis in the UAE private sector earn a GPSSA pension instead of end-of-service gratuity, and must be registered within a month of the work permit being issued. Under the 1999 law the employee pays 5% and the employer 12.5%. For anyone first insured on or after 31 October 2023, Federal Decree-Law No. 57 of 2023 sets 11% and 15%. Contributions are due by the 15th of the following month.
Emiratis in the private sector do not earn gratuity. They earn a pension, paid for monthly by the employee, the employer and in some cases the government, and the rates changed for anyone who started work after October 2023.
Who is covered by the GPSSA pension?
UAE nationals working in the private sector are registered with the General Pension and Social Security Authority (GPSSA) and contribute every month instead of earning end-of-service gratuity. Emiratis from Abu Dhabi working in that emirate are generally registered with the Abu Dhabi Pension Fund instead.
Nationals of other GCC states working in the UAE stay in their own country's scheme, as the section on GCC nationals below explains.
Sharjah also has its own fund, the Sharjah Social Security Fund (SSSF). A private company headquartered in the emirate joins it by choice, and where it has not, its Emirati staff stay on GPSSA. See the Sharjah page for the rates.
What are the GPSSA contribution rates?
Federal Decree-Law No. 57 of 2023 set new rates for Emiratis whose first insured job began on or after 31 October 2023. Those registered before then stay under the earlier law.
| First insured before 31 October 2023 | First insured on or after 31 October 2023 | |
|---|---|---|
| Law | Federal Law No. 7 of 1999 | Federal Decree-Law No. 57 of 2023 |
| Employee | 5% | 11% |
| Employer | 12.5% | 15%, or 12.5% where the government pays 2.5% |
| Government | 2.5%, making 20% in all | 2.5% where the contribution salary is under AED 20,000 |
| Minimum contribution salary | Set by the 1999 law | AED 3,000 |
Contributions are worked out on the contribution salary, which has a floor and a ceiling. The employee's share is deducted in payroll and appears on the payslip; the employer's share is a cost on top of the salary.
When are GPSSA registration and contributions due?
- Register a new Emirati employee with GPSSA and start contributing within a month of the work permit being issued
- Pay each month's contributions between the 1st and the 15th of the following month
- From the 16th, a late charge of 0.1% a day accrues, up to the amount that was due
- Late registration is fined separately, for each day and each employee
Two deadlines in the same fortnight
Salaries are now due through WPS by the 1st of the month, and GPSSA contributions by the 15th. Both come out of the same approved payroll, so the pension schedule should be produced with the run rather than assembled afterwards.
How does the Abu Dhabi Pension Fund differ?
The Abu Dhabi Pension Fund covers nationals of Abu Dhabi working in the emirate, under its own law and with its own salary limits. Its rates changed in 2023 and depend on when a member first registered, so check with the fund which rate applies to each employee and when registration is due.
How are GCC nationals working in the UAE treated?
Under Cabinet Resolution No. 18 of 2007, the UAE employer registers a GCC employee and pays contributions into the scheme of their home country, in line with that country's rules. The employer pays what it would pay for an Emirati, and the employee bears any additional difference.
So a Saudi or Kuwaiti employee needs a different schedule from an Emirati one, and the payroll has to know the nationality.
MOHRE treats GCC nationals like UAE nationals in its procedures, with one exception that matters to the count: they do not count towards the Emiratisation quota. They still need a work permit from MOHRE, and once it is issued they can start straight away, without a residence visa.
What has to happen when an Emirati employee leaves?
The employer must cancel the work permit immediately when the contract ends. Contributions for the last month are still due by the 15th of the following month. Because there is no gratuity for the service covered by the pension, a final settlement for an Emirati looks different from one for an expatriate colleague.
How do pensions work in DIFC and ADGM?
In both financial free zones, UAE and GCC nationals are enrolled in their pension instead of earning gratuity or DEWS. In DIFC, where the pension contribution is lower than DEWS would have been, the employer pays the difference if it is at least AED 1,000 a month. ADGM requires enrolment within 30 days of joining.
How does pension registration affect Emiratisation?
An Emirati employee counts towards the company's Emiratisation target only once they are registered with the pension authority, and since 2026 their work permit needs a salary of at least AED 6,000. A missing registration is therefore a problem twice: once with GPSSA and again in the Emiratisation count.
DenwaysHR calculates GPSSA contributions under the 1999 and the 2023 laws by joining date, adds them to the payslip and builds the monthly schedule. It does the same for the Abu Dhabi Pension Fund's two schemes for Emirati staff at an Abu Dhabi branch, though some details of those are still to be confirmed with the fund.
See UAE payroll and WPSSources
- UAE Government portal: Employing Emiratis in the private sector (Emiratisation targets, contributions, pension registration)
- UAE Government portal: GCC nationals working in the private sector
Official pages, as they stood on the date above. The law is the authority; check it, or ask your adviser, before acting on a figure.
Keep reading
Bring your whole workforce onto one platform.
See how DenwaysHR handles HR, attendance and leave across the GCC, and payroll with the WPS file in the UAE.
