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Friday, September 29, 2023

UAE employee contribution to be calculated in January

It is continuing to ensure Emiratis employed in the private sector take advantage of the pension benefits.

The General Pension and Social Security Authority (GPSSA) of UAE explained the basis by which contributions are calculated on January of each year for an insured individual, since it is continuing to ensure Emiratis employed in the private sector take advantage of the pension benefits as per the UAE federal law.

The contribution salary is calculated on January of each year; this salary serves as the basis of contribution payments within one complete year. It is important to note however that no salary increase or decrease is considered after the month of January for private sector employees.

In case of a service commencement or termination, contributions are paid to the GPSSA for the full month by which the service started, however, this does not include the part of the month when an employee got terminated.

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