Private sector entities that do not pay monthly contributions or provide incorrect data for their Emirati employees risk incurring additional penalties and, under certain conditions, imprisonment, as per the federal pension and social security law.
At the end of its campaign to educate insured Emiratis and the entities in which they are employed about an insured’s rights and duties in accordance with the Nafis programme, the General Pension and Social Security Authority (GPSSA) stated that charging an insured person with a percentage greater than the due contribution percentage or failing to pay expenses altogether results in a fine of Dh5,000 for each insured person. A court ruling is immediately taken to oblige entities to return excess amounts to their insured employees.
According to the pension and social security federal law, salary contributions are due at the beginning of each month and may be extended until the 15th. The provisions of Article 13 of the law state that monthly pension contributions are not refundable. Therefore, any delay in paying contributions beyond the specified dates results in mandating the company/entity owner to pay an additional amount at the rate of 0.1 per cent of the contributions due for each delayed day and without the need to send a warning, as per the provisions of Article 14.