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UAE Pensions Authority raises awareness of incorrect contribution practices leading to penalties for private sector entities

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ABU DHABI, (UrduPoint/Pakistan Point News/WAM – 27th December, 2022) Private sector entities that fail to pay monthly contributions or provide incorrect data to their Emirati employees risk incurring additional penalties and, in some cases, imprisoned under,’according to federal Pensions and social security law.

At the conclusion of the educational campaign for insured persons and their employed entities under the NAFIS scheme regarding the rights and obligations of insured persons, the General Administration of Pensions and Social Security (GPSSA) stated that charging insured persons a percentage higher than they should be Pro rata or failure to pay fees in full result in a beautiful AED 5,000 per insured person.A sort of court An immediate ruling requiring the entity to refund the excess amount to its insured employees.

‘Employers fined for every Emiratis staff Failure to register with GPSSA and assume responsibility for retroactive payment of fees, and in accordance with staffStart date,” GPSSA said in a statement.

Under pension and social security federal law, salary contributions are due at the beginning of each month and possible extended to 15 days. Article 13 of the Act stipulates that monthly pension contributions are non-refundable. Therefore, any late payment of contributions beyond the specified date will result in the payment of an additional amount by the owner of the company/entity at the rate of 0.1% of the contributions payable for each day of delay without warning, pursuant to Article XIV.

Additional 10% fee from The value of contributions owed by entities that pay contributions based on incorrect wages to avoid paying contributions at a higher rate, or fail to pay for certain or all their employees.Additionally, employers could face jail time and beautiful Not exceeding AED5,000 each staff If the entity sends incorrect data or restrains from provide information all is considered an illegal practice.



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