Monthly pension contributions for Emirati employees who have joined the workforce from October 31, 2023, increases by 6 percent

According to Law No. 57 of 2023, the monthly pension contributions for Emirati workers who began working after October 31, 2023, were increased by 6%. Currently, the total contribution salary is 26 percent. The employer will cover the remaining 15% of the total under the new rate, with an Emirati employee contributing 11% of it. However, as a means of encouraging employers to recruit Emiratis, the UAE government pays a rate of 2.5 percent to Emiratis employed in the private sector whose contribution account salary does not exceed Dh20,000.

In the past, companies paid 12.5% of the monthly contribution wage to employees, who contributed 5%. The government covered the remaining 2.5 percent.

The General Pension and Social Security Authority of the United Arab Emirates highlighted on Wednesday that, in accordance with the new legislation, government agencies and private companies that hire nationals of the UAE have two choices for how to pay contributions at the new rates for a period of three months, beginning in October and ending in December 2023.

All public and private sector organisations received a new circular in November that provided guidelines on how contribution payments should be transferred on behalf of Emiratis who start working after October 31, 2023, and those who were not previously covered by the current Law No. 7 of 1999.